Econometrics

Online Appendix

This post accompanies the article “Rejoinder to ‘Endogeneity bias in marketing research: Problem, causes and remedies’” in Industrial Marketing Management (IMM). We restate some sections of the main text for completeness in this document. Throughout we include R code to run the 2SLS estimations, create graphs, and generate the datasets. Model setting Before we start working on simulated data, let’s understand how much bias we expect if we use each of OLS, ZKHL, and 2SLS.