Machine Learning Methods for Demand Estimation.

We survey and apply several techniques from the statistical and computer science literature to the problem of demand estimation. To improve out-of-sample prediction accuracy, we propose a method of combining the underlying models via linear regression. Our method is robust to a large number of regre...

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Publicado en:American Economic Review Vol. 105; no. 5; pp. 481 - 486
Autores principales: Bajari, Patrick, Nekipelov, Denis, Ryan, Stephen P., Yang, Miaoyu
Formato: Artículo
Publicado: American Economic Association May2015
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: May2015
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      pub: American Economic Association
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        10.1257/aer.p20151021
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        atl: Machine Learning Methods for Demand Estimation.
      aug:
        au:
          Bajari, Patrick
          Nekipelov, Denis
          Ryan, Stephen P.
          Yang, Miaoyu
        affil:
          Department of Economics, University of Washington, 331 Savery Hall, Seattle, WA 98195, and NBER (e-mail: )
          Department of Economics, University of Virginia, 254 Monroe Hall, Charlottesville, VA 22904 (e-mail: )
          Department of Economics, University of Texas at Austin, 2225 Speedway Stop C3100, BRB 3.134D, Austin, TX 78712, and NBER (e-mail: )
          Department of Economics, University of Washington, 331 Savery Hall, Seattle, WA 98195 (e-mail: )
      su:
        Economic demand
        Machine learning
        Estimation theory
        Mathematical models
        Demand function
        Big data
        Regression analysis
      sug:
        subj:
          Economic demand
          Machine learning
          Estimation theory
          Mathematical models
          Demand function
          Big data
          Regression analysis
      ab: We survey and apply several techniques from the statistical and computer science literature to the problem of demand estimation. To improve out-of-sample prediction accuracy, we propose a method of combining the underlying models via linear regression. Our method is robust to a large number of regressors; scales easily to very large data sets; combines model selection and estimation; and can flexibly approximate arbitrary non-linear functions. We illustrate our method using a standard scanner panel data set and find that our estimates are considerably more accurate in out-of-sample predictions of demand than some commonly used alternatives.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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