Is the Gold /Pray Simulation Demand Model Valid and is it Really Robust?

Abstract

The purpose of this paper is to evaluate the Gold/Model presented at ABSEL in 1983 to determine whether the model is really valid and “Robust” as claimed by the authors. The model was subjected to rigorous sensitivity analysis and examined in light of different theories of advertising. The assumption that a multiplicative model is superior to non multiplicative models was also examined. The rigorous analysis of this paper found a number of problems inherent in the Gold/Pray model.