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Joint Estimation of Discrete Choice Model and Arrival Rate with Unobserved Stock-out Events

Hongzhang Shao, Anton J. Kleywegt

arXiv 4 Mar 2020 · Mathematics — Optimization

arXiv:2003.02313 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper studies the joint estimation problem of a discrete choice model and the arrival rate of potential customers when unobserved stock-out events occur. In this paper, we generalize [Anupindi et al., 1998] and [Conlon and Mortimer, 2013] in the sense that (1) we work with generic choice models, (2) we allow arbitrary numbers of products and stock-out events, and (3) we consider the existence of the null alternative, and estimates the overall arrival rate of potential customers. In addition, we point out that the modeling in [Conlon and Mortimer, 2013] is problematic, and present the correct formulation.

Citation extraction

7
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8
in-text mentions
7
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Luce, R. D (1959) Individual choice behavior: A theoretical analysis0.51121100%
2Anupindi, R., Dada, M., and Gupta, S (1998) Estimation of consumer demand with stock-out based substitution: An application to vending machine products0.40511100%
3Ben-Akiva, M. E., Lerman, S. R., and Lerman, S. R (1985) Discrete choice analysis: theory and application to travel demand, volume 90.40511100%
4Blanchet, J., Gallego, G., and Goyal, V (2016) A markov chain approximation to choice modeling0.40511100%
5Talluri, K. and Van Ryzin, G (2004) Revenue management under a general discrete choice model of consumer behavior0.40511100%
6Train, K. E (2009) Discrete choice methods with simulation0.40511100%
7Vulcano, G., Van Ryzin, G., and Ratliff, R (2012) Estimating primary demand for substitutable products from sales transaction data0.40511100%

Showing the top 7 of 7 scored citations.