Publication

Estimation of bid functions for location choice and price modeling with a latent variable approach

Michel Bierlaire
2012
Reports

Abstract

A new approach for the estimation of bid-rent functions for location choice is proposed. The method considers that the expected maximum bid in the auction of a good is a latent variable than can be related to observed prices for similar goods. The model generates estimates for the spatial distribution of agents and prices simultaneously that are better than those obtained by estimating a maximum bid and a price model independently. The model is applied and validated for a case study. Results show that the proposed model outperforms other methods for bid rent estimation, especially when detailed data describing the real estate goods an their prices is not available.

Official source

https://infoscience.epfl.ch/entities/publication/234fc9de-c187-4849-aaaf-19b2f4e5d94d

About this result

This page is automatically generated and may contain information that is not correct, complete, up-to-date, or relevant to your search query. The same applies to every other page on this website. Please make sure to verify the information with EPFL's official sources.

Graph Chat

Chat with Graph Search

Ask any question about EPFL courses, lectures, exercises, research, news, etc. or try the example questions below.

DISCLAIMER: The Graph Chatbot is not programmed to provide explicit or categorical answers to your questions. Rather, it transforms your questions into API requests that are distributed across the various IT services officially administered by EPFL. Its purpose is solely to collect and recommend relevant references to content that you can explore to help you answer your questions.

Michel Bierlaire
2012
Reports

Abstract

Official source

https://infoscience.epfl.ch/entities/publication/234fc9de-c187-4849-aaaf-19b2f4e5d94d

About this result

Related concepts (32)

Auction

An auction is usually a process of buying and selling goods or services by offering them up for bids, taking bids, and then selling the item to the highest bidder or buying the item from the lowest bidder. Some exceptions to this definition exist and are described in the section about different types. The branch of economic theory dealing with auction types and participants' behavior in auctions is called auction theory. The open ascending price auction is arguably the most common form of auction and has been used throughout history.

Pricing

Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of product. Pricing is a fundamental aspect of product management and is one of the four Ps of the marketing mix, the other three aspects being product, promotion, and place.

Price

A price is the (usually not negative) quantity of payment or compensation expected, required, or given by one party to another in return for goods or services. In some situations, the price of production has a different name. If the product is a "good" in the commercial exchange, the payment for this product will likely be called its "price". However, if the product is "service", there will be other possible names for this product's name.

Related publications (22)

Estimation of bid functions for location choice and price modeling with a latent variable approach

Chat with Graph Search

Robust Software for the Modeling of Spatial Random Fields across Geoscience Disciplines

Designing Sampling Strategies for the Efficient Estimation of Parameterized Spatial Covariance Models

BHAMSLE: A Breakpoint Heuristic Algorithm for Maximum Simulated Likelihood Estimation of Advanced Discrete Choice Models