The reduction of the number of parameters in high-order Markov chain already inspired several articles. In particular, Raftery proposed an autoregressive modelling which utilizes the same transition matrix, with a coefficient, for every lag. In this paper, we show that a model of the same type,...

Household level panel data are the input for many types of marketing studies. An interesting, but until now unaddressed, question is what is the effect of aggregating individual members' purchases to the household level. Under “standard” assumptions the answer is unambiguous: the household...