Discrete choice models including screening rules: modeling and design.

When people choose between alternatives, they make trade-offs between the different characteristics of the alternatives. The standard models assume that people make trade-offs between all the attributes and that they do this for all alternatives. But people often use screening rules to simplify the task. Mainly two types of screening rules have been modelled. Common consideration-set screening rules assume that respondents first evaluate whether an alternative is acceptable and otherwise delete it from the choice set. In attribute non-attendance screening, respondents are assumed to completely ignore part of the attributes. Neglecting such screening behavior when analyzing choice data will lead to unreliable parameter estimates and willingness-to-pay values. In this project we will take screening rules into account while generating individually tailored choice sets in online choice experiments and extend consideration set models to account for attribute non-attendance and to model heterogeneity among individuals.

Keywords:choice models

Disciplines:Applied economics, Economic history, Macroeconomics and monetary economics, Microeconomics, Tourism