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Generalized extreme value regression for binary response data: an application to B2B electronic payments system adoption. (English) Zbl 1220.62165

Summary: In information systems research, a question of particular interest is to interpret and to predict the probability of a firm to adopt a new technology such that market promotions are targeted to only those firms that were more likely to adopt the technology. Typically, there exists significant difference between the observed number of “adopters” and “nonadopters,” which is usually coded as binary response. A critical issue involved in modeling such binary response data is the appropriate choice of link functions in a regression model. We introduce a new flexible skewed link function for modeling binary response data based on the generalized extreme value (GEV) distribution. We show how the proposed GEV links provide more flexible and improved skewed link regression models than the existing skewed links, especially when dealing with imbalance between the observed number of 0’s and 1’s in a data. The flexibility of the proposed model is illustrated through simulated data sets and a billing data set of the electronic payments system adoption from a Fortune 100 company in 2005.

MSC:

62P30 Applications of statistics in engineering and industry; control charts
62G32 Statistics of extreme values; tail inference
90B60 Marketing, advertising
65C60 Computational problems in statistics (MSC2010)
90B30 Production models

Software:

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References:

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