Bayesian Estimation of Random-Coefficients Choice Models Using Aggregate Data
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Statistics Papers
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Discrete Choice Models
Aggregate Data
Bayesian Methods
Markov Chain Monte Carlo Simulation
Data Augmentation
Random Coefficients
Business
Statistics and Probability
Aggregate Data
Bayesian Methods
Markov Chain Monte Carlo Simulation
Data Augmentation
Random Coefficients
Business
Statistics and Probability
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Musalem, Andrés
Bradlow, Eric T
Raju, Jagmohan S
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Abstract
This article discusses the use of Bayesian methods for estimating logit demand models using aggregate data, i.e. information solely on how many consumers chose each product. We analyze two different demand systems: independent samples and consumer panel. Under the first system, there is a different and independent random sample of N consumers in each period and each consumer makes only a single purchase decision. Under the second system, the same N consumers make a purchase decision in each of T periods. The proposed methods are illustrated using simulated and real data, and managerial insights available via data augmentation are discussed in detail.
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2009-04-01
Journal title
Journal of Applied Econometrics