Data level aggregation for price elasticity

by Brohn   Last Updated September 12, 2019 01:19 AM

I have just started working on price elasticity and I have some fundamental question.

Question 1: I have daily price and sales data for a product, now if I want to calculate the price elasticity should I aggregate the data at a weekly or some other level or should I directly feed the data into a regression model.

Question 2: Now let's assume the data size is very large and I cannot run models on daily data which in this case leads me to aggregating the data at a weekly level. The questions is how do I aggregate the data which contains these scenarios: 1) There may be multiple price points within the week 2) One product may have same price for 2 weeks then its price change for another week and then the price reverts back to original in the next week.



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