All empirical data and the resulting parameters are subject to error.
In this paper we explicitly use the standard, but hardly profound, ''m
odel'' Observed Value = True Score + Error as a lens for better viewin
g empirical studies in search of empirical generalizations in marketin
g. This lens is especially valuable when the unit of analysis is the i
ndividual consumer. However, even when a macro study contrasts price e
lasticities across cities, this O = T + E framework can be very helpfu
l.