Abstract
Market simulators assist managers in product design and pricing decisions, through advanced heuristic algorithms for consumer buying behavior modeling. We propose a model for use in such systems, which combines the effective incorporation of the two critical properties a simulator should theoretically reflects, with exceptionally performance in actual choice shares estimation. Differential Impact and Substitution are exhibited through the representation of customer heterogeneity and product similarity in the choice rule, while high predictive accuracy is displayed with the implementation of the Stochastic Logarithmic Search algorithm.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have