 Joint Optimization of Assortment Selection and Pricing under the Capacitated Multinomial Logit Choice Model with Product-Differentiated Price Sensitivities Ruxian Wang HP Laboratories HPL-2012-207 Multinomial Logit model; assortment optimization; multi-product price optimization Many firms face a problem to select an assortment of products and determine their prices to maximize the total prof...

In this research, we propose a novel approach for a multinomial logit model selection procedure: specifically, we apply association rules analysis to identifying potential interactions for multinomial logit modeling. Interaction effects are very common in reality, but conventional multinomial logit model selection methods typically ignore them. This is especially true for higher-order interacti...

The mixed logit model is considered to be the most promising state of the art discrete choice model currently available. Increasingly researchers and practitioners are estimating mixed logit models of various degrees of sophistication with mixtures of revealed preference and stated choice data. It is timely to review progress in model estimation since the learning curve is steep and the unwary ...

Several supervised learning algorithms are suited to classify instances into a multiclass value space. MultiNomial Logit (MNL) is recognized as a robust classifier and is commonly applied within the CRM (Customer Relationship Management) domain. Unfortunately, to date, it is unable to handle huge feature spaces typical of CRM applications. Hence, the analyst is forced to immerse himself into fe...

This paper uses data on automobile purchases to compare two alternatives to the multinomial logit model. The results indicate that the nested logit model is likely to be superior to the more general Berry–Levinsohn–Pakes model for applications using aggregate-level data.  2000 Elsevier Science S.A. All rights reserved.

objective: poverty alleviation is an essential step to achieve economic development. this is why identification exercise is so crucial. traditionally, different aspects of insecurities have not be taken into poverty measurement. many types of insecurities have adverse impacts on household welfare. identifying vulnerability of household can serve identification of the poor households. methodolog...

Functional logistic regression has been developed to forecast a binary response variable from a functional predictor. In order to fit this model, it is usual to assume that the functional observations and the parameter function of the model belong to a same finite space generated by a basis of functions. This consideration turns the functional model into a multiple logit model whose design matr...

The so-called “mixed” or “heterogeneous” multinomial logit (MIXL) model has become popular in a number of fields, especially Marketing, Health Economics and Industrial Organization. In most applications of the model, the vector of consumer utility weights on product attributes is assumed to have a multivariate normal (MVN) distribution in the population. Thus, some consumers care more about som...

This paper describes a revenue management project with a major airline that operates in a fiercely competitive market involving two major hubs and having more than 30 parallel daily flights. The market has a number of unusual characteristics including (1) almost half of customers choose not to purchase the tickets after booking; (2) about half of customers purchase their tickets within 3 days o...

An exact formula for the expected compensating variation is derived for logit and nested-logit models with income effects. Intuition, examples, and an application are provided. The appendix contains a formal proof. The formula is applied to estimate the E[cv]s salmon anglers in Maine would associate with changes in catch rates at Maine and Canadian Rivers.