Lecture 10: Likelihood Methods II: Multiple Discrete Choices

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Lecture 10 from my Applied Metrics PhD Course.

Please note that I've cut out questions from students, so some of the cuts in the video might feel slightly disjointed!
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On your slide of SUPD, by 'with logit errors, new products do not crowd the original market, ' do you mean that logit erorr always incorporate some external margin of the market (substitution from the outside good) as opposed to preserving the internal share of the market? Similar to what the "pure characteristics model" tried to address..?

robinkim