IEEE-INNS-ENNS International Joint Conference on Neural Networks (IJCNN'00)-Volume 5
Logit Demand Function with Embedded Neural Network Based Utility Function
Como, Italy
July 24-July 27
ISBN: 0-7695-0619-4
Utility of product variants is a nonlinear function of product features. Such a utility function can be represented by a multi-layer perceptron and embedded into the classical logit demand function. However, the utility (which is the output of the multi-layer perceptron to be learned) is not explicitly known. This is why the backpropagation-learning rule has been extended to fit the demand function directly to observed market shares. Forecasts of market shares on the German automobile market with help of perceptron-based and classical logit model are compared. The perceptron-based model leads to a significant improvement of the forecast quality.
Citation:
Wilm Eggert, Tomas Hrycej, "Logit Demand Function with Embedded Neural Network Based Utility Function," ijcnn, vol. 5, pp.5285, IEEE-INNS-ENNS International Joint Conference on Neural Networks (IJCNN'00)-Volume 5, 2000