This article presents a state-space representation known as parameters as states (PASTA) for linear market response models with time-varying parameters. The PASTA representation enables (a) conversion of the problem of estimating the time-varying effectiveness of marketing interventions from a...

Accurate estimates of the future demand and the substitution probabilities between products are important inputs for retail assortment optimization. However, these quantities are difficult to estimate as the estimation involves understanding and modeling of consumer’s choice behavior when a...