Working Paper

Choosing Response Models for Budget Allocation in Heterogeneous and Dynamic Markets: Why Simple Sometimes Does Better

Dennis Proppe and Sönke Albers

Jan 1, 2009

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What is the benefit of using sophisticated estimation techniques for marketing decisions instead of simple rules of thumb? This article employs a comprehensive simulation study to test the performance of marketing decisions based on estimation results against simple decision rules for a large set of data conditions.

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