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Effects coding in discrete choice experiments

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  • Mickael Bech

    (University of Southern Denmark, Institute of Public Health, Odense C, Denmark)

  • Dorte Gyrd-Hansen

    (University of Southern Denmark, Institute of Public Health, Odense C, Denmark)

Abstract

This paper discusses the inherent problems associated with applying dummy coding when including a fixed comparator in a discrete choice experiment, and seeks to illustrate the misinterpretations that may arise if the analyst is not aware of the problem. This note provides two examples of possible misinterpretations with dummy coding and how it is solved with the use of effects coding. Copyright © 2005 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.984
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 14 (2005)
Issue (Month): 10 ()
Pages: 1079-1083

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Handle: RePEc:wly:hlthec:v:14:y:2005:i:10:p:1079-1083

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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  1. Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
  2. Tara Maddala & Kathryn A. Phillips & F. Reed Johnson, 2003. "An experiment on simplifying conjoint analysis designs for measuring preferences," Health Economics, John Wiley & Sons, Ltd., vol. 12(12), pages 1035-1047.
  3. Shelley Farrar & Mandy Ryan, 1999. "Response-ordering effects: a methodological issue in conjoint analysis," Health Economics, John Wiley & Sons, Ltd., vol. 8(1), pages 75-79.
  4. Tami L. Mark & Joffre Swait, 2004. "Using stated preference and revealed preference modeling to evaluate prescribing decisions," Health Economics, John Wiley & Sons, Ltd., vol. 13(6), pages 563-573.
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