Tier 1 | Tier 2 | Tier 3 | Tier 4 | |
---|---|---|---|---|
Panel A. Net effects | ||||
Median Tier-1 price | −0.890 | 0.640 | 0.200 | 0.070 |
(0.012) | (0.010) | (0.003) | (0.001) | |
Median Tier-2 price | 0.622 | −1.943 | 0.857 | 0.426 |
(0.010) | (0.009) | (0.008) | (0.006) | |
Median Tier-3 price | 0.198 | 0.866 | −1.515 | 0.450 |
(0.003) | (0.008) | (0.013) | (0.010) | |
Median Tier-4 price | 0.071 | 0.437 | 0.458 | −0.946 |
(0.001) | (0.006) | (0.010) | (0.011) | |
Number of person-year observations | 8552 | 8552 | 8552 | 8552 |
Share of observations in Tier k | 12.64% | 44.68% | 28.70% | 13.99% |
% change in share choosing Tier k, implied by net own-price effect | −7.04% | −4.35% | −5.28% | −6.76% |
Panel B. Gross effects | ||||
Median Tier-1 price | −4.050 | 0.169 | 0.154 | – |
(0.056) | (0.004) | (0.005) | ||
Median Tier-2 price | 2.775 | −0.552 | 0.672 | – |
(0.048) | (0.006) | (0.016) | ||
Median Tier-3 price | 0.800 | 0.265 | −1.676 | – |
(0.028) | (0.004) | (0.019) | ||
Median Tier-4 price | 0.474 | 0.118 | 0.850 | – |
(0.020) | (0.003) | (0.015) | ||
Number of person-year observations | 1236 | 4206 | 2522 | – |
Share of observations starting in Tier k | 100.0% | 100.0% | 100.0% | – |
% change in share choosing Tier k, implied by gross own-price effect | −4.05% | −0.55% | −1.68% | – |
Average marginal price effects, reported as percentage points, are calculated from the conditional logit regression in Table 3. For each Tier k=(1, 2, 3, 4), bolded numbers denote the effect of median Tier-k price on the probability of choosing that same Tier k (ie, the own-price effect), and unbolded numbers indicate the cross-effect of median Tier-k price on the probability of choosing Tier j ≠ k (ie, the cross-price effect). Standard errors bootstrapped with 1000 repetitions are in parentheses. Net effects in Panel A, calculated on the full sample, capture the combination of movement into and out of a tier. Gross effects in Panel B, calculated for those starting in each given tier, capture movement out of a tier. The regression for the Tier-4 gross effects failed to converge due to a small sample.