What difference does dynamics make? The case of digital cameras

►Propose semi-parametric approach to control for dynamics in BLP framework. ►Compare Gowrisankaran and Rysman (GR), BLP and new model for modeling dynamic demand. ►New data on US digital camera market used. ►Semi-parametric model partially improves on BLP and easier computationally than GR. ►GR model yields more elastic demand, suggests market more competitive than others.