Prices, Profits, and Preference Dependence
用copula方法分离消费者对产品品种的边际价值分布与依赖关系，研究偏好依赖性如何影响对称多产品行业的市场结果，发现更强的依赖性在特定条件下会降低价格和利润。
We develop a new approach to discrete choice demand for differentiated products, using copulas to separate the marginal distribution of consumer values for product varieties from their dependence relationship, and apply it to the issue of how preference dependence affects market outcomes in symmetric multiproduct industries. We show that greater dependence lowers prices and profits under certain conditions, suggesting that preference dependence is a distinct indicator of product differentiation. We also find new sufficient conditions for the symmetric multiproduct monopoly and the symmetric single‐product oligopoly prices to be above or below the single‐product monopoly price.