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An Algorithmic Aid for Intensity Measures of Consumer Preference

Author

Listed:
  • K. Pasumarty

    (Rutgers University, Newark, New Jersey)

  • D. F. Karney

    (University of Kansas, Lawrence, Kansas)

  • T. D. Morley

    (Georgia Institute of Technology, Atlanta, Georgia)

Abstract

Recently, J. R. Hauser and S. M. Shugan, and K. Pasumarty, have used constant-sum paired comparisons to estimate the intensity of consumer preferences for various products. Both studies use the consumer's responses to determine whether his/her preference function is ratio, interval or ordinal in nature. This determination involves performing a statistical analysis based upon the experimental design matrix, M , which identifies the various transitivity tests designed into the experiment, and upon a companion matrix, W . Unfortunately, both studies generated W by means of exhaustive enumeration, a costly computational technique. In this paper, we propose an algorithm that generates the matrix W cheaply and efficiently. The algorithm is based in part upon modular arithmetic and a technique developed by R. J. Duffin and T. D. Morley for meshing electrical networks. When implemented on a Zenith 150 personal computer, the proposed algorithm found W , for the examples given in both Hauser and Shugan and Pasumarty, in a fraction of the time (at most 0.032) required by exhaustive enumeration. We also show that even when W is not unique, the statistical measurements that utilize W are.

Suggested Citation

  • K. Pasumarty & D. F. Karney & T. D. Morley, 1987. "An Algorithmic Aid for Intensity Measures of Consumer Preference," Operations Research, INFORMS, vol. 35(3), pages 437-444, June.
    • Handle: RePEc:inm:oropre:v:35:y:1987:i:3:p:437-444
    DOI: 10.1287/opre.35.3.437
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