Behavioural Extensions in Estimation of Demand and Market Power

My research aims to estimate demand in imperfectly competitive markets without imposing traditional optimising assumptions. Understanding consumer demand is interesting in its own right because doing so provides insights into how consumers substitute between goods as prices and product characteristics change and how advertising and information disclosure affect consumer behaviour. However, the purpose of my research is to estimate demand as a means to answer a fundamental question in empirical industrial organisation: how much market power do firms have?
In this sense, my research is line with the "New Empirical Industrial Organisation" (NEIO).
Coined by Bresnahan (1989), the NEIO tackles the data problem of unobservable firm costs by employing an indirect approach in which estimates of firms' demand functions (more specifically price elasticity of demand) are used to estimate firms' mark-ups. A notable application of the method described is in competition policy. Indeed, the UK Competition and Markets Authority conducts econometric analysis to assess the likelihood of price increases and collusive behaviour following a merger. These exercises draw on academic research and motivate the development of empirical techniques that incorporate behavioural departures from rationality.
I estimate demand in a discrete choice setting. Discrete choice models predict consumer choices between two or more alternatives. The reach of this approach is extensive, covering important economic decisions such as whether to enter the labour force or which mode of transport to select. For the purposes of this topic, I concentrate on the case of a consumer choosing between a finite number of competing products in a given industry. Instead of imposing the unrealistic optimisation assumption that the consumer maximises expected utility, I aim to build an econometric framework that incorporates developments in behavioural economic theory, focusing specifically on models of non-expected utility theory (a prominent example is prospect theory) and of bounded rationality.