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Endogeneity in Marketing Decision Models

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  • Steven M. Shugan

    (University of Florida, Gainesville, Florida 32611)

Abstract

There are many critical concerns (including the accounting for endogeneity) when one is properly estimating response functions. However, it is sometimes (certainly not always) better to leave some variables exogenous when building mathematical models intended to help decision makers. The exogenous variables allow the decision maker to better adapt the mathematical model to different situations and to incorporate myriad variables and constraints outside of the model.

Suggested Citation

  • Steven M. Shugan, 2004. "Endogeneity in Marketing Decision Models," Marketing Science, INFORMS, vol. 23(1), pages 1-3.
    • Handle: RePEc:inm:ormksc:v:23:y:2004:i:1:p:1-3
    DOI: 10.1287/mksc.1040.0060
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    References listed on IDEAS

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    Cited by:

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    2. Larcker, David F. & Rusticus, Tjomme O., 2010. "On the use of instrumental variables in accounting research," Journal of Accounting and Economics, Elsevier, vol. 49(3), pages 186-205, April.
    3. Peter Ebbes, 2007. "A non-technical guide to instrumental variables and regressor-error dependencies (in Russian)," Quantile, Quantile, issue 2, pages 3-20, March.

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