Data and Code for: The Rise of Niche Consumption
Principal Investigator(s): View help for Principal Investigator(s) Brent Neiman, University of Chicago; Joseph Vavra, University of Chicago
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
|---|---|---|---|
| Replication Code | 05/23/2022 12:37:PM |
Project Citation:
Neiman, Brent, and Vavra, Joseph. Data and Code for: The Rise of Niche Consumption. Nashville, TN: American Economic Association [publisher], 2023. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2023-06-23. https://doi.org/10.3886/E161841V1
Project Description
Summary:
View help for Summary
This is the data repository for "The Rise of Niche Consumption": Over the last 15 years, the typical household has increasingly concentrated its spending on a few preferred products. However, this is not driven by ``superstar'' products capturing larger market shares. Instead, households increasingly purchase different products from each other. As a result, aggregate spending concentration has decreased. We develop a model of heterogeneous household demand and use it to conclude that increasing product variety drives these divergent trends. When more products are available, households select products better matched to their tastes. This delivers welfare gains from selection equal to about half a percent per year in the categories covered by our data. Our model features heterogeneous markups because producers of popular products care more about their existing customers while producers of less popular niche products care more about generating new customers. Surprisingly, our model matches the observed trends in household and aggregate concentration without any change in aggregate market power.
Scope of Project
Subject Terms:
View help for Subject Terms
Product concentration;
Niche Products;
Market Power;
Markups;
Long-tail
JEL Classification:
View help for JEL Classification
D12 Consumer Economics: Empirical Analysis
D43 Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
E21 Macroeconomics: Consumption; Saving; Wealth
E31 Price Level; Inflation; Deflation
D12 Consumer Economics: Empirical Analysis
D43 Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
E21 Macroeconomics: Consumption; Saving; Wealth
E31 Price Level; Inflation; Deflation
Geographic Coverage:
View help for Geographic Coverage
United States
Time Period(s):
View help for Time Period(s)
2004 – 2016
Universe:
View help for Universe
Households in the Nielsen Panel
Data Type(s):
View help for Data Type(s)
aggregate data;
program source code;
survey data
Related Publications
Published Versions
Report a Problem
Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.
This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.