A Correlated Pareto/NBD Model
This note presents an informal description of a "correlated Pareto/NBD" model, one in which we replace the Pareto/NBD assumption that heterogeneity in $\lambda$ and $\mu$ is captured by two independent gamma distributions with the assumption that the joint distribution of $\lambda$ and $\mu$ is a bivariate lognormal distribution.

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Last updated: 2015-01-04