Avoiding aggregation bias in demand estimation: A multivariate promotional disaggregation approach
Demand models produce biased results when applied to data aggregated across stores with heterogeneous promotional activity. We show how to modify extant aggregate demand frameworks to avoid this problem. First a consumer-level model is developed, which is then integrated over the heterogeneous stores to arrive at aggregate demand. Our approach is highly practical since it requires only standard scanner data of the type produced by the major vendors. Using data for super-premium ice cream, we apply the proposed methodology to the random coefficients logit demand framework. Copyright Springer Science + Business Media, LLC 2006
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Volume (Year): 4 (2006)
Issue (Month): 4 (December)
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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