Integrable Elasticity via Neural Demand Potentials
About
We propose the Integrable Context-Dependent Demand Network (ICDN), a demand-first neural model for multiproduct retail demand. The model learns log-demand as a smooth, context-conditioned function of log-prices, allowing elasticities to be derived exactly from the learned demand surface. On the Dominick's beer dataset, ICDN improves out-of-sample generalization over a directed log-log benchmark and yields more stable, economically plausible elasticity estimates, especially for weakly identified cross-price effects.
Carlos Heredia, Daniel Roncel• 2026
Related benchmarks
| Task | Dataset | Result | Rank | |
|---|---|---|---|---|
| Cross-price elasticity estimation | Dominick’s beer dataset (bootstrap) | Matched Cross-Pairs (Bootstrap)544 | 2 | |
| Cross-price elasticity estimation | Dominick’s beer dataset temporal folds | Count of Cross-pairs (>= 3 folds)948 | 2 | |
| Own-price elasticity estimation | Observational retail data matched store-UPC series | Narrower CI Rate83.5 | 2 | |
| Own-price elasticity estimation | Observational scanner data | CI Coverage (95%)99.4 | 2 | |
| Cross-price elasticity estimation | Observational scanner data | 95% CI Coverage83.6 | 2 | |
| Demand Prediction | Dominick’s beer (out-of-sample) | ΔR² Test Statistic3.757 | 1 |
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