Calculation and Visualization of Dynamic Price Elasticities

Authors

  • Hirokazu Tajima Tokyo Keizai University

DOI:

https://doi.org/10.7903/cmr.11071

Keywords:

Price

Abstract

Applying the Hierarchical Bayesian Regression model to weekly aggregated sales history data from 92 retail stores located around Tokyo, I calculated price elasticities by item, week, and store. These elasticities are more stable than figures calculated using the Hierarchical Regression or Bayesian Regression models. Furthermore, using Google Earth, I visualized the calculated price elasticities of these 92 stores over 67 weeks, providing a better understanding about heterogeneity of price elasticities across time and space. Keywords: Price Elasticity, Hierarchical Bayesian Regression Model, Markov Chain Monte Carlo (MCMC) method, Google Earth To cite this document: Hirokazu Tajima, "Calculation and Visualization of Dynamic Price Elasticities", Contemporary Management Research, Vol.9, No.4, pp.389-398, 2013. Permanent link to this document: http://dx.doi.org/10.7903/cmr.11071

Author Biography

Hirokazu Tajima, Tokyo Keizai University

Professor, Department of Management

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Published

2013-12-09

How to Cite

Tajima, H. (2013). Calculation and Visualization of Dynamic Price Elasticities. Contemporary Management Research, 9(4). https://doi.org/10.7903/cmr.11071

Issue

Section

Other contemporary management issues

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