Machine Learning, Causal Inference, Data Science, Deep Dives, Notes From Industry.
variation. 5 Discussion Similar to the example from the beginning, consider a retailer currently selling 100 units of a product for $5 each with a cost of $2. With an estimated elasticity of -1.9, the retailer should decrease prices for more profit. But with a (biased, naive) estimate of -0.6, they