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  • Estimating demand elasticity, regression design, statistical tests and sample size

    Statistics, Econometrics:

    Hello everyone, I need an important piece of advice in connection with a data-related issue - especially to the economists and statistics/econometrics affine among you. I am designing a laboratory experiment and want to find out how the demand for fair textiles in Spain can be influenced by more information on the production etc.. I planned a six-group design in a laboratory experiment (each group receives a different information - increasing in the number of details with regard to the production background of the shirts). Each customer is presented with different T-shirts (from fair production and child labour) in several steps. 10 T-shirts have to be bought and the price of the fair shirt increases by one Euro each round. Each round the respondent has to decide which T-shirt (fair or unfair) to buy (he has to buy at least one and the cost is taken away from his budget). The participant receives the remaining budget and the shirts after the experiment. Based on the change in demand, I would like to calculate a demand elasticity, which I would like to compare across the treatment groups (does it change when knowing more about the origin of the shirts?). I also have many variables about the buyers that I could use as explanatory variables (educational backgound etc)..

    What statistical methods do I use? Which tests do I do best? And how do I determine the required sample size? (Number of participants?) How do I show significant differences in demand elasticity across groups? It would be great if someone could help me.

    Thank you very much!

  • #2
    You didn't get a quick answer. On this listserve, we use our real names. Also, it helps if you follow the FAQ on asking questions - provide Stata code in code delimiters, readable Stata output, and sample data using dataex.

    Your questions seem to suggest you need to read a book on designing and analyzing experiments. The Stata pdf documentation has a book on Power and Sample Size - read it also.

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