Demand Estimation with Text and Image Data

Fuente: arXiv
Saved in:
Bibliographic Details
Main Authors: Compiani, Giovanni, Morozov, Ilya, Seiler, Stephan
Format: Preprint
Published: 2025
Subjects:
Online Access:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1866911452516843520
author Compiani, Giovanni
Morozov, Ilya
Seiler, Stephan
author_facet Compiani, Giovanni
Morozov, Ilya
Seiler, Stephan
contents We propose a demand estimation approach that leverages unstructured data to infer substitution patterns. Using pre-trained deep learning models, we extract embeddings from product images and textual descriptions and incorporate them into a mixed logit demand model. This approach enables demand estimation even when researchers lack data on product attributes or when consumers value hard-to-quantify attributes such as visual design. Using a choice experiment, we show this approach substantially outperforms standard attribute-based models at counterfactual predictions of second choices. We also apply it to 40 product categories offered on Amazon.com and consistently find that unstructured data are informative about substitution patterns.
format Preprint
id arxiv_https___arxiv_org_abs_2503_20711
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Demand Estimation with Text and Image Data
Compiani, Giovanni
Morozov, Ilya
Seiler, Stephan
General Economics
Economics
Computer Vision and Pattern Recognition
Machine Learning
We propose a demand estimation approach that leverages unstructured data to infer substitution patterns. Using pre-trained deep learning models, we extract embeddings from product images and textual descriptions and incorporate them into a mixed logit demand model. This approach enables demand estimation even when researchers lack data on product attributes or when consumers value hard-to-quantify attributes such as visual design. Using a choice experiment, we show this approach substantially outperforms standard attribute-based models at counterfactual predictions of second choices. We also apply it to 40 product categories offered on Amazon.com and consistently find that unstructured data are informative about substitution patterns.
title Demand Estimation with Text and Image Data
topic General Economics
Economics
Computer Vision and Pattern Recognition
Machine Learning
url https://arxiv.org/abs/2503.20711