Set-Valued Channel Demand in Unbundling Counterfactuals: A Comment on Crawford and Yurukoglu (2012)
A comment on Crawford and Yurukoglu (2012)
Abstract
Crawford and Yurukoglu (2012) value a channel set by optimizing viewing time. Their programs use proportional viewing and sum channel increments evaluated at one reference bundle. The printed Kuhn–Tucker allocation has corners, and the reference formula represents every selected set exactly under modularity. A two-channel economy changes purchases and surplus. The full à la carte programs also vary the household choice kernel across bargains and use different smoothing scales for demand and welfare. A replacement uses one set-value and one shock law throughout bargaining, demand, and welfare. The released tables reproduce the channel count; computing national welfare requires the fitted household and equilibrium state.
Technical point
The released programs combine proportional viewing, fixed-reference additive channel values, and choice kernels that need not coincide with the set-valued demand object defined by the printed model.
Scope
Claims affected
The mapping from the printed channel-allocation model into estimation and full à la carte calculations when proportional viewing, fixed-reference values, or bargain-specific choice laws are used interchangeably.
What remains intact
The time-allocation preference, distributor bundle choice, affiliate-cost moment inequalities, and Nash bargaining architecture continue to apply under one coherent household set-value and shock law.