Questions tagged [cross-price-elasticity]
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How can I formulate price elasticity of demand equation when I want to add cross price elasticity?
I am trying to calculate the price elasticity of demand for a product where I used the equation
log(volume) = elasticity * log(price) + seasonality dummies + trend index + CPI
Here CPI is the consumer ...
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How to estimate if goods are complementary or substitutes when one good is always offered for free?
Usually whether two goods are complementary or substitutes can be measured by estimating cross-price elasticity of demand. If cross-price elasticity of demand is negative the two goods are ...
