Jordan J. Louviere and George Woodworth (1983) “Design and Analysis of Simulated Consumer Choice or Allocation Experiments: An Approach Based on Aggregate Data."Journal of Marketing Research, Vol. 20, No. 4 (Nov., 1983), pp. 350-367. (in JSTOR: http://www.jstor.org/stable/3151440)
The authors integrate concepts in conjoint analysis and discrete choice theory in econometrics to develop a new approach to the design and analysis of controlled consumer choice or resource allocation experiments. The article is concerned with estimating the parameters of conjoint-type functions from discrete choice or allocation data. Emphasis is placed on the multinomial logit model and aggregate choice or allocation data to illustrate the concepts in a series of empirical examples ranging from simple to complex. The authors present limited external validity evidence to support the approach and make comparisons with traditional conjoint approaches.
Ordering effects and strategic response in discrete choice experiments
This study explores ordering effects and response strategies in repeated binary discrete choice experiments (DCE). Mechanism design theory and empirical evidence suggest that repeated choice tasks per respondent introduce strategic behavior. We find evidence that the order in which choice sets are presented to respondents may provide strategic opportunities that affect choice decisions (âstrategic responseâ). The findings propose that the âstrategic responseâ does not follow strong cost-minimization but other strategies such as weak cost-minimization or good deal/ bad deal heuristics. Evidence further suggests that participants, as they answer more choice questions, not only make more accurate choices (âinstitutional learningâ) but may also become increasingly aware of and learn to take advantage of the order in which choice sets are presented to them (âstrategic learningâ).
||discrete choice experiments, incentive compatibility, mixed logit models, ordering effects, repeated binary choice task, response strategies, Environmental Economics and Policy,