Dong, DianshengKaiser, Harry M.2019-04-092019-04-092003-10https://hdl.handle.net/1813/65039NICPRE 03-01; R.B. 2003-04By endogenizing unit value and coupon redemption, we estimate U.S. household cheese purchase, quality choice, and coupon redemption equations simultaneously. Zero purchases and missing values are taken into account in the model to correct for the selectivity bias. The correlations among the three equations are found to be significant. Empirical findings show that high quality choice significantly decreases cheese purchases, while cheese coupon usage significantly increases purchases. We find that higher income households select higher quality cheese, while larger households choose lower quality cheese. Frequent coupon redeemers are found to purchase lower quality cheese. For coupon redemption, we find that African American households redeem less while Asian households redeem more comparing to the Caucasian households.en-USApplied Economicsreport