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Hierarchical fuzzy integral stated preference method for Taiwan's broadband service market

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  • Tseng, Fang-Mei
  • Chiu, Yu-Jing

Abstract

The stated preference method (or conjoint analysis) has been a popular method for measuring buyer tradeoffs among multi-attribute products or services. In addition, the multi-nomial logit (MNL) model is a popular model for the stated preference method, although it relies on the assumption that its attributes have no correlations. However, in social problems, attributes are often correlated with each other. Recently, the Choquet integral has been used to solve non-additive problems. This study combines the Choquet integral and the stated preference method to propose the hierarchical fuzzy integral stated preference (HFISP) method, and then analyze the narrowband service users' preferences for broadband service. The results demonstrate that the hierarchical fuzzy integral stated preference method performs better than the partitioned fuzzy integral multi-nomial logit (PFIMNL) model. The HFISP method is effective and can be applied to deal with real life problems since it solves correlated attribute problem in discrete choice behavior.

Suggested Citation

  • Tseng, Fang-Mei & Chiu, Yu-Jing, 2005. "Hierarchical fuzzy integral stated preference method for Taiwan's broadband service market," Omega, Elsevier, vol. 33(1), pages 55-64, February.
    • Handle: RePEc:eee:jomega:v:33:y:2005:i:1:p:55-64
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    References listed on IDEAS

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    1. Oecd, 2001. "The Development of Broadband Access in the OECD Countries," OECD Digital Economy Papers 56, OECD Publishing.
    2. Peter M. Guadagni & John D. C. Little, 1983. "A Logit Model of Brand Choice Calibrated on Scanner Data," Marketing Science, INFORMS, vol. 2(3), pages 203-238.
    3. Chen, Yuh-Wen & Tzeng, Gwo-Hshiung, 2001. "Using fuzzy integral for evaluating subjectively perceived travel costs in a traffic assignment model," European Journal of Operational Research, Elsevier, vol. 130(3), pages 653-664, May.
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    Cited by:

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