Track 5
Choice, Substitution & Demand
Discrete choice models, structural demand estimation, multi-product optimization, and optimal assortment design with mixed logit.
Product Line Architect
Design a product line of 3-5 SKUs, set features and prices, and see how heterogeneous customers choose using Mixed Logit. Compare your manual assortment against algorithmic optimization.
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Topics
How Customers Choose Among Products
Logit models and the substitution problem
Model how customers choose among competing products using discrete choice frameworks, and discover why the Independence of Irrelevant Alternatives property matters for pricing.
Estimating Demand from Market Data
Recovering preferences with the BLP method
Recover consumer preferences from aggregate market-share data using the Berry-Levinsohn-Pakes contraction mapping, and compare simple logit vs random-coefficients elasticity patterns.
Multi-Product Pricing
Optimizing across substitutes and complements
Optimize prices across a product portfolio where cross-elasticities link demand. Explore the joint profit surface and see why optimizing products independently leaves money on the table.
Product Line Architect
Assortment + pricing with mixed logit
Design a product line of 3-5 SKUs, set features and prices, and see how heterogeneous customers choose using Mixed Logit. Compare your manual assortment against algorithmic optimization.