Abstract
Market researchers often conduct surveys asking respondents to estimate their future demand for new products. However, projected demand may exhibit systematic bias. For example, the more respondents like a product, the more they may exaggerate their demand. We found evidence of such exaggeration in a recent survey of demand for a potential new video product. In this paper, we develop a computationally tractable procedure that corrects for a general form of systematic bias in demand projections. This general form is characterized by a monotonie transformation of projected demand, and covers exaggeration bias as a special case.
Original language | English (US) |
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Pages (from-to) | 53-76 |
Number of pages | 24 |
Journal | Journal of Econometrics |
Volume | 76 |
Issue number | 1-2 |
DOIs | |
State | Published - 1997 |
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
Keywords
- Censored models
- Misreporting
- New product demand
- Survey data
- Transformation models