Switching Matrix in the Longtudinal Panel example

Janta,

When discussing the switching matrix data that longitudinal panels can provide (textbook example), seems like I misspoke about the competitive effects of brands B and C on A. It seemed somewhat shaky in class and I later thought about it, it is now quite clear and quite simple, really.

Brand B is the bigger threat to brand A in the long run because A loses more customers (50) to B than gains from B (25). The opposite is true for brand C.

You can look this up later today after the lecture 2 slides are put up on blackboard. Alternatively lookup the same example in chapter 4 of the textbook.

Sudhir