A comparison of generalized multinomial logit (GMNL) and latent class approaches to studying consumer heterogeneity with some extensions of the GMNL model by J. Pancras and D.K. Dey

Research output: Contribution to journalShort survey

Abstract

J. Pancras and D.K. Dey written a paper to demonstrate a different version of the generalized multinomial logit (GMNL) and the widely used latent class multinomial logit (LCMNL) approaches to studying heterogeneity in consumer purchases. They have demonstrated that the GMNL model outperforms the best-fitting LCMNL model for a panel dataset of household ketchup purchases. They have also described extensions to the scale heterogeneity model that include the effects of state dependence and purchase history. The authors have proposed an interesting simulation approach by means of the Bayes' rule, to compute individual level beta coefficients. It will be interesting to compare their results with those It will be interesting to compare their results with those, as the simulation approach is conditional on the maximum likelihood estimates. The proposed approach is also simpler to implement, but the performance of the procedure needs to be investigated in detail.

Original languageEnglish (US)
Number of pages1
JournalApplied Stochastic Models in Business and Industry
Volume27
Issue number6
DOIs
StatePublished - Nov 1 2011

Fingerprint

Multinomial Logit
Multinomial Logit Model
Latent Class
Fitting Class
Bayes Rule
Maximum Likelihood Estimate
Simulation
Maximum likelihood
Coefficient
Demonstrate
Consumer heterogeneity
Latent class
Multinomial logit
Multinomial logit model
Model
Purchase

All Science Journal Classification (ASJC) codes

  • Modeling and Simulation
  • Business, Management and Accounting(all)
  • Management Science and Operations Research

Cite this

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title = "A comparison of generalized multinomial logit (GMNL) and latent class approaches to studying consumer heterogeneity with some extensions of the GMNL model by J. Pancras and D.K. Dey",
abstract = "J. Pancras and D.K. Dey written a paper to demonstrate a different version of the generalized multinomial logit (GMNL) and the widely used latent class multinomial logit (LCMNL) approaches to studying heterogeneity in consumer purchases. They have demonstrated that the GMNL model outperforms the best-fitting LCMNL model for a panel dataset of household ketchup purchases. They have also described extensions to the scale heterogeneity model that include the effects of state dependence and purchase history. The authors have proposed an interesting simulation approach by means of the Bayes' rule, to compute individual level beta coefficients. It will be interesting to compare their results with those It will be interesting to compare their results with those, as the simulation approach is conditional on the maximum likelihood estimates. The proposed approach is also simpler to implement, but the performance of the procedure needs to be investigated in detail.",
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AB - J. Pancras and D.K. Dey written a paper to demonstrate a different version of the generalized multinomial logit (GMNL) and the widely used latent class multinomial logit (LCMNL) approaches to studying heterogeneity in consumer purchases. They have demonstrated that the GMNL model outperforms the best-fitting LCMNL model for a panel dataset of household ketchup purchases. They have also described extensions to the scale heterogeneity model that include the effects of state dependence and purchase history. The authors have proposed an interesting simulation approach by means of the Bayes' rule, to compute individual level beta coefficients. It will be interesting to compare their results with those It will be interesting to compare their results with those, as the simulation approach is conditional on the maximum likelihood estimates. The proposed approach is also simpler to implement, but the performance of the procedure needs to be investigated in detail.

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