@article{Considerations:2504,
      recid = {2504},
      author = {Wakamori, Naoki},
      title = {Portfolio Considerations in Differentiated Product  Purchases: An Application to the Japanese Automobile  Market},
      address = {2011},
      pages = {1 online resource (iii, 43 pages)},
      abstract = {Consumers often purchase more than one differentiated  product, assembling a portfolio, which might potentially  affect substitution patterns of demand and, as a  consequence, oligopolistic firms’ pricing strategies. This  paper studies such consumers’ portfolio considerations by  developing a structural model that allows for flexible  complementarities/substitutabilities depending on consumer  attributes and product characteristics. I estimate the  model using Japanese household-level data on automobile  purchasing decisions. My estimates suggest that  complementarities arise when households purchase a  combination of one small automobile and one minivan as  their portfolio. Ignoring such effects leads to a  overstated counterfactual analysis. Simulation results  suggest that a policy proposal of repealing the current tax  subsidies for small ecofriendly automobiles would decrease  the demand for those automobiles by 9%; less than the 14%  drop predicted by a standard single discrete choice model.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/2504},
      doi = {https://doi.org/10.34989/swp-2011-27},
}