Graduate Center Masterclasses

Demand estimation and binary choice econometric models have long been central to the study of Industrial Organization, helping researchers and policymakers understand consumer preferences, market power, and competitive dynamics. These models allow for the estimation of demand elasticities and price markups. However, their applications have expanded far beyond this traditional domain, finding relevance in fields such as the Digital Economy, Economics of Education, Environmental Economics, Finance, Marketing, and Trade.

In the Digital Economy, empirical tools from Industrial Organization are used to study consumer inertia, aversion to advertisements, and the role of intermediaries in platform-based advertising. In Environmental Economics, binary choice models help analyze incentives to adopt green technologies, such as electric vehicles or sustainable food consumption. The Economics of Education relies on these models to assess school choice and the effectiveness of policy interventions, while in Finance, they are used to study markets for mortgages and bank deposits. These expanding applications highlight the versatility of empirical Industrial Organization techniques and their growing importance across multiple disciplines.