Videos and questions for Chapter 3b of the course "Market Analysis with Econometrics and Machine Learning" at Ulm University (taught by Sebastian Kranz)

Profit maximization of a multi-product firm

Which sign would we expect for the cross price derivative \(\frac{\partial q_{2}(p)}{\partial p_1}\) for two car models?

Can the conditional logit with product attributes as explanatory variables well model flexible substitution patterns? Make a guess.

For which car type will a conditional logit model predict a higher increase in the absolute demand if the price of sports car A increases (see video above)?

Which choice probabilities will the conditional logit model predict when we introduce the blue bus?

Independence of irrelevant alternatives

Two consumer types

Will the model with two consumer types have the effect that a price increase of sports car A has a bigger impact on sports car B than on family car C?

The mixed logit model

That's all. Look at the RTutor problem set 3b to study an application of mixed logit models.