The workhorse brand choice models in marketing are the multinomial logit (MNL) and nested multinomial logit (NMNL). These models place strong restrictions on how brand share and purchase incidence price elasticities are related. They predict market shares well, but not inter-purchase spell lengths. In this paper, we propose a new model of brand choice, the “price consideration” (PC) model, that...

This paper uses annual time series data from Taiwan to empirically estimate the demand for cigarettes, in consideration of the import liberation of foreign cigarettes and of anti-smoking campaigns. The results indicate that the price elasticities for domestic and imported cigarettes are -0.6 and -1.1, respectively. The cross-price elasticities are 0.08 for domestic and 2.78 for imported cigaret...