I have been thinking through an analysis that asks the question: how do young versus old consumers purchasing differ in response to media coverage of a firm's product.
I have a large random set of data of consumer good purchases for individuals in Ireland. I then collected information about news coverage for each firm in the data.
Let us assume that anyone under 25 is "young." The obvious analysis I ran was a regression of purchases on this dichotomous variable interacted with media coverage.
I want to account for individual differences and thought an easy way to do this is a fixed effect for each individual. Since it is only 11 months of data, no one crosses the threshold from
young = 0 to
young = 1 so I cannot run this regression. I did run a subsample regression that removes all of the young (or old) and could now include these fixed effects to do a regression of purchase on media. This does not seem like the right way to do this.
My worry is that the main effect from my first regression is being driven by some individual differences and not necessarily being old or young and I want to control for this. Is there a way to handle this scenario apart from fixed effects?