Motivated by direct interactions with practitioners and real-world data, we study a monopoly firm selling multiple substitute products to customers characterized by their different social network degrees. Under the multinomial logit model framework, we assume that the utility a customer with a...

We study assortment optimization problems under multinomial logit choice model with two tree structured consideration set models, i.e., the subtree model and the induced paths model. In each model, there are multiple customer types and each customer type has a different consideration set. A...

Interest increased after the last global financial crisis in 2007, as the crisis revealed the challenges facing central banks in dealing with the financial crises arising from the banking sector, and thus exposing the financial positions of the banking sector to high risks that caused the...

This paper characterizes the logit model with menu dependent variance. The characterization follows from two conditions: independent log-odds and log-odds monotonicity. Independent log-odds says the change to log-odds across different menus is independent of the alternatives used to compare...

Although typically overlooked, many purchase datasets exhibit a high incidence of products with zero sales. We propose a new estimator for the Random-Coefficients Logit demand system for purchase datasets with zero-valued market shares. The identification of the demand parameters is based on a...

This paper examines the usefulness of logit regression in forecasting the consumer bankruptcy of households using an imbalanced dataset. The research on consumer bankruptcy prediction is of paramount importance as it aims to build statistical models that can identify consumers in a difficult...