This paper investigates the role of the outside good utility function on admissible substitution patterns in multiple discrete/continuous demand models. We first present a set of novel results that characterize the functional form of quantity price effects within this class of models. The results highlight the relative inflexibility of many standard outside good utility functions. We then propose a new outside good utility function that admits more flexible marginal utility curves. Our empirical analysis uses household scanner panel data from the potato chip category, where we find empirical support for non-standard rates of satiation for the outside good. We then show how the restrictive substitution patterns induced by standard utility specifications may distort price elasticities and the evaluation of loyalty coupon targeting programs.

本文研究了外部良好效用函数对多个离散/连续需求模型中可接受的替代模式的作用。我们首先提出了一组新颖的结果，描述了此类模型中数量价格效应的函数形式。结果凸显了许多标准的外部良好效用函数相对缺乏灵活性。然后，我们提出了一个新的外部良好效用函数，它允许更灵活的边际效用曲线。我们的实证分析使用了来自薯片类别的家用扫描仪面板数据，我们在其中找到了对外部商品的非标准满足率的实证支持。然后，我们展示了标准公用事业规范引起的限制性替代模式如何扭曲价格弹性以及忠诚优惠券目标计划的评估。