Article
An empirical test of Tobit model robustness in estimating online auction prices over various distributions
International Journal of Mathematics in Operational Research
(2017)
Abstract
Data censoring is a common issue in estimating demand and pricing data. The issue is often handled by Tobit models with normal distribution being assumed for its maximum likelihood function. Realistically, datasets can deviate from normal distributions. In this research, we specifically tested Tobit model robustness under distribution variations in online auction markets. We collected data from online auction markets and tested Tobit model robustness against various distributions. Our conclusion showed that Tobit model turned out to be fairly robust. This research provided empirical evidences for the robustness of Tobit estimations in online auction markets.
Keywords
- Tobit model,
- Robustness,
- Online Auction,
- Pricing
Disciplines
Publication Date
May 12, 2017
DOI
10.1504/IJMOR.2017.10005074
Citation Information
Ming Zhou, Shaonan Tian and Taeho Park. "An empirical test of Tobit model robustness in estimating online auction prices over various distributions" International Journal of Mathematics in Operational Research Vol. 10 Iss. 4 (2017) p. 450 - 461 Available at: http://works.bepress.com/ming_zhou/31/