Learning by Consumers in the Demand for Japanese Cars

This paper provides an empirical analysis of the impact of consumer learning over time on the demand for Japanese cars, using both a multinomial logit demand model and the Berry–Levinsohn–Pakes demand model ( Econometrica , vol. 63, 1995, 841–90). The data suggest that learning about particular models, manufacturers, and Japanese cars as a group had a positive impact on the demand for individual models during the 1970s and 1980s.