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Demand estimation from sales transaction data: practical extensions
In this paper, we discuss practical limitations of the standard choice-based demand models used in the literature to estimate demand from sales transaction data. We present modifications and extensions of the models and discuss data preprocessing and solution techniques which are useful for practiti...
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Published in: | Journal of revenue and pricing management 2021-06, Vol.20 (3), p.276-300 |
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Main Authors: | , |
Format: | Article |
Language: | English |
Subjects: | |
Citations: | Items that this one cites Items that cite this one |
Online Access: | Get full text |
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Summary: | In this paper, we discuss practical limitations of the standard choice-based demand models used in the literature to estimate demand from sales transaction data. We present modifications and extensions of the models and discuss data preprocessing and solution techniques which are useful for practitioners dealing with sales transaction data. Among these, we present an algorithm to split sales transaction data observed under partial availability, we extend a popular Expectation Maximization (EM) algorithm for non-homogeneous product sets, and we develop two iterative optimization algorithms which can handle much of the extensions discussed in the paper. |
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ISSN: | 1476-6930 1477-657X |
DOI: | 10.1057/s41272-021-00312-3 |