We examine the profitability of personalized pricing policies that are derived using different specifications of demand in a typical retail setting with consumer-level panel data. We generate pricing policies from a variety of models, including Bayesian hierarchical choice models, regularized...

We examine the profitability of personalized pricing policies that are derived using different specifications of demand in a typical retail setting with consumer-level panel data. We generate pricing policies from a variety of models, including Bayesian hierarchical choice models, regularized...

This paper investigates the role of the outside good utility function on admissible substitution patterns in direct utility models of discrete/continuous demand. We first present a set of novel results that characterize the functional form of price effects within this class of models. The...

Many economic models of consumer demand require researchers to partition sets of products or attributes prior to the analysis. These models are common in applied problems when the product space is large or spans multiple categories. While the partition is traditionally fixed a priori, we let the...

This paper presents a methodology for identifying groups of products that exhibit similar patterns in demand and responsiveness to changes in price using store-level sales data. We use the concept of economic separability as the basis for establishing similarity between products, and build a...

This paper studies the effects of misspecified boundaries of competition on optimal retail pricing using store-level supermarket scanner data. We focus on two types of misspecification: (i) misspecification of the demand estimation problem, which can arise from either defining the product market...