Orange Juice Competition
Estimating Price Elasticities with Theory-Based Priors
Author(s): Alan L. Montgomery and Peter E. Rossi
Source: Journal of Marketing Research, Vol. 36, No. 4, (Nov., 1999), pp. 413-423
Published by: American Marketing Association
Stable URL: http://www.jstor.org/stable/3151997
Accessed: 22/07/2008 16:25
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ALAN MONTGOMERY PETER ROSSI*
L.
E. and The authors show how price elasticity estimates can be improved in demand systems that involve multiple brands and stores. They treat these demand models in a hierarchical Bayesian framework. Unlike in more standard Bayesian hierarchical treatments, the authors use prior information based on the restrictions imposed by additive utilitymodels. In an additive utilitymodel approach, price elasticities are driven by a general substitution parameter as well as
Author(s): Alan L. Montgomery and Peter E. Rossi
Source: Journal of Marketing Research, Vol. 36, No. 4, (Nov., 1999), pp. 413-423
Published by: American Marketing Association
Stable URL: http://www.jstor.org/stable/3151997
Accessed: 22/07/2008 16:25
Your use of the JSTOR archive indicates your acceptance of JSTOR 's Terms and Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR 's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use.
Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at http://www.jstor.org/action/showPublisher?publisherCode=ama. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission.
JSTOR is a not-for-profit organization founded in 1995 to build trusted digital archives for scholarship. We work with the scholarly community to preserve their work and the materials they rely upon, and to build a common research platform that promotes the discovery and use of these resources. For more information about JSTOR, please contact support@jstor.org.
http://www.jstor.org
ALAN MONTGOMERY PETER ROSSI*
L.
E. and The authors show how price elasticity estimates can be improved in demand systems that involve multiple brands and stores. They treat these demand models in a hierarchical Bayesian framework. Unlike in more standard Bayesian hierarchical treatments, the authors use prior information based on the restrictions imposed by additive utilitymodels. In an additive utilitymodel approach, price elasticities are driven by a general substitution parameter as well as
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