question archive There are two customer segments in the population
There are two customer segments in the population
Subject:EconomicsPrice: Bought3
There are two customer segments in the population. The customers in the first segment make their purchases according to an IDM model, and the customers in the segment make their purchases according to an MNL model. The probability that an arriving customer is in the first segment is λ ∈ (0, 1). With the remaining probability 1 − λ, an arriving customer is in the second segment. Note that λ is a parameter you need to estimate. Write out the likelihood function under the mixture choice model given history H.
