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arXiv · 2003.02313

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

Hongzhang Shao·Anton J. Kleywegt
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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.

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Hongzhang Shao, Anton J. Kleywegt. 2020-03-04. Joint Estimation of Discrete Choice Model and Arrival Rate with Unobserved Stock-out Events. https://arxiv.org/abs/2003.02313

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