I have a dataset that contains information about purchases of different items at different times with different prices. I want to calculate both price and cross-price elasticity for each item.
So in my setting, there is only one company, which sells products of different brands. The company has two types of discounts, one is a regular one e.g. new year discounts and some discounts that are decided based on (lack of) demand.
In my setting, is it reasonable to assume that supply is completely price insensitive as company is only retailer? If I make this assumption, simple OLS would be valid for demand elasticity? For cross price elasticity, conditional logit will be appropriate? Any recommendation is welcome.