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Tom
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GARCH (1,1)

Started this discussion. Last reply by yasin mahmood Nov 8, 2010. 13 Replies

 

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Profile Information

Short Bio:
MSc International Finance
Field of Expertise:
Business Analytics, Predictive Modeling
Professional Status:
Manager
Interests:
Finding a New Position

Tom's Blog

cannibalization of product

Posted on January 31, 2013 at 1:31pm 3 Comments

I am trying to determine the rate of cannibalization of product sales for A with product B. I am using ~ 2 years of daily sales data for product A and then ~8 months of data for product B. That is, product B launched 8 month ago. I am using the longer series for A to capture trend effects in the business (natural or industry rate of decline or growth). I also control for seasonality by using a weekday variable (= day of week 1-7) and a week number variable (1-52).

If I use the log-log…

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