IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v4y1985i1p20-40.html
   My bibliography  Save this article

A Bayesian Cross-Validated Likelihood Method for Comparing Alternative Specifications of Quantitative Models

Author

Listed:
  • Roland T. Rust

    (University of Texas at Austin)

  • David C. Schmittlein

    (The Wharton School, University of Pennsylvania)

Abstract

There are many situations in marketing in which several alternative quantitative models may be built to model a particular marketing phenomenon or system. Few methods exist for comparing the fit of such models if the models are not nested, especially if their performance on each of several criteria is important. This paper proposes a Bayesian cross-validated likelihood (BCVL) method for comparing quantitative models. It can be used when the models are either nested or nonnested, and is especially useful for nonnested models. A simulation based upon a typical marketing modeling situation shows the incremental benefit of using the BCVL method rather than existing techniques, and explores the circumstances under which BCVL works best. The applicability of the BCVL method is demonstrated using several typical marketing modeling situations.

Suggested Citation

  • Roland T. Rust & David C. Schmittlein, 1985. "A Bayesian Cross-Validated Likelihood Method for Comparing Alternative Specifications of Quantitative Models," Marketing Science, INFORMS, vol. 4(1), pages 20-40.
    • Handle: RePEc:inm:ormksc:v:4:y:1985:i:1:p:20-40
    DOI: 10.1287/mksc.4.1.20
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.4.1.20
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mksc.4.1.20?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Erin Anderson, 2008. "The Salesperson as Outside Agent or Employee: A Transaction Cost Analysis," Marketing Science, INFORMS, vol. 27(1), pages 70-84, 01-02.
    2. Abhik Roy, 2022. "A dynamic model of price competition and promotion in prescription drug markets," Marketing Letters, Springer, vol. 33(4), pages 577-591, December.
    3. Lehmann, Donald R., 2020. "The evolving world of research in marketing and the blending of theory and data," International Journal of Research in Marketing, Elsevier, vol. 37(1), pages 27-42.
    4. Astrea Camstra & Anne Boomsma, 1992. "Cross-Validation in Regression and Covariance Structure Analysis," Sociological Methods & Research, , vol. 21(1), pages 89-115, August.
    5. Abhik Roy & Jagmohan Raju, 2011. "The influence of demand factors on dynamic competitive pricing strategy: An empirical study," Marketing Letters, Springer, vol. 22(3), pages 259-281, September.
    6. Eric T. Bradlow & David C. Schmittlein, 2000. "The Little Engines That Could: Modeling the Performance of World Wide Web Search Engines," Marketing Science, INFORMS, vol. 19(1), pages 43-62, June.
    7. Namwoon Kim & Jin K. Han & Rajendra K. Srivastava, 2002. "A Dynamic IT Adoption Model for the SOHO Market: PC Generational Decisions with Technological Expectations," Management Science, INFORMS, vol. 48(2), pages 222-240, February.
    8. He A Xu & Alireza Modirshanechi & Marco P Lehmann & Wulfram Gerstner & Michael H Herzog, 2021. "Novelty is not surprise: Human exploratory and adaptive behavior in sequential decision-making," PLOS Computational Biology, Public Library of Science, vol. 17(6), pages 1-32, June.
    9. repec:wyi:journl:002122 is not listed on IDEAS
    10. Islam, Towhidul & Meade, Nigel, 2000. "Modelling diffusion and replacement," European Journal of Operational Research, Elsevier, vol. 125(3), pages 551-570, September.
    11. Kim, Namwoon & Srivastava, Rajendra K., 2007. "Modeling cross-price effects on inter-category dynamics: The case of three computing platforms," Omega, Elsevier, vol. 35(3), pages 290-301, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:4:y:1985:i:1:p:20-40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.