Use causal inference to evaluate the effect of pricing strategies on customer loyalty.
Instruction: Explain the model and variables you would consider to reliably estimate this causal relationship.
Context: This question probes the candidate's ability to link economic theories with causal inference techniques to assess impacts in a retail context.
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To begin with, the primary variable of interest here is customer loyalty, which can be operationalized in several ways. For the sake of clarity and specificity, let's measure customer loyalty as the frequency of repeat purchases within a fixed period, say, a year...
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