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22 Jan 2019

You want to price posters at the Poster Showcase profitably and run an experiment to estimate the demand elasticity. You raise the price of kitten posters 10% but keep your dog poster prices unchanged. After a month, kitten poster unit sales fall by 12%, but dog posters rise by 8%. Why might the elasticity estimate from this experiment be biased?

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Elin Hessel
Elin HesselLv2
22 Jan 2019

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