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We present a new prior and corresponding algorithm for Bayesian analysis of the multinomial probit model. Our new approach places a prior directly on the identified parameter space. The key is the specification of a prior on the covariance matrix so that the (1,1) element if fixed at 1 and it is possible to draw from the posterior using standard distributions. Analytical results are derived which...
The distribution of consumer preferences plays a central role in many marketing activities. Pricing and product design decisions, for example, are based on an understanding of the differences among consumers in price sensitivity and valuation of product attributes. In addition, marketing activities which target specific households require household level parameter estimates. Thus, the modeling of...
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