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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

TaskDatasetResultRank
Cross-price elasticity estimationDominick’s beer dataset (bootstrap)
Matched Cross-Pairs (Bootstrap)544
2
Cross-price elasticity estimationDominick’s beer dataset temporal folds
Count of Cross-pairs (>= 3 folds)948
2
Own-price elasticity estimationObservational retail data matched store-UPC series
Narrower CI Rate83.5
2
Own-price elasticity estimationObservational scanner data
CI Coverage (95%)99.4
2
Cross-price elasticity estimationObservational scanner data
95% CI Coverage83.6
2
Demand PredictionDominick’s beer (out-of-sample)
ΔR² Test Statistic3.757
1
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