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D-optimal conjoint choice designs with no-choice options for a nested logit model

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Author Info

  • GOOS, Peter
  • VERMEULEN, Bart
  • VANDEBROEK, Martina

Abstract

Despite the fact that many conjoint choice experiments offer respondents a no-choice option in every choice set, the optimal design of conjoint choice experiments involving no-choice options has received only a limited amount of attention in the literature. In this article, we present an approach to construct D-optimal designs for this type of experiment. For that purpose, we derive the information matrix of a nested multinomial logit model that is appropriate for analyzing data from choice experiments with no-choice options. The newly derived information matrix is compared to the information matrix for the multinomial logit model that is used in the literature to construct designs for choice experiments. It is also used to quantify the loss of information in a choice experiment due to the presence of a no-choice option.

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Bibliographic Info

Paper provided by University of Antwerp, Faculty of Applied Economics in its series Working Papers with number 2008020.

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Length: 22 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:ant:wpaper:2008020

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Postal: Prinsstraat 13, B-2000 Antwerpen
Web page: https://www.uantwerp.be/en/faculties/applied-economic-sciences/
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Related research

Keywords: Choice-based conjoint; Information loss; Multinomial logit model; Nested logit model; No-choice option;

This paper has been announced in the following NEP Reports:

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  1. Kessels, Roselinde & Goos, Peter & Vandebroek, Martina, 2008. "Optimal designs for conjoint experiments," Computational Statistics & Data Analysis, Elsevier, vol. 52(5), pages 2369-2387, January.
  2. Goos, Peter & Vandebroek, Martina, 2001. "-optimal response surface designs in the presence of random block effects," Computational Statistics & Data Analysis, Elsevier, vol. 37(4), pages 433-453, October.
  3. Heiko Großmann & Heinz Holling & Ulrike Graßhoff & Rainer Schwabe, 2006. "Optimal Designs for Asymmetric Linear Paired Comparisons with a Profile Strength Constraint," Metrika, Springer, vol. 64(1), pages 109-119, August.
  4. Dhar, Ravi, 1997. " Consumer Preference for a No-Choice Option," Journal of Consumer Research, University of Chicago Press, vol. 24(2), pages 215-31, September.
  5. Zsolt Sándor & Michel Wedel, 2002. "Profile Construction in Experimental Choice Designs for Mixed Logit Models," Marketing Science, INFORMS, vol. 21(4), pages 455-475, February.
  6. Kessels, Roselinde & Jones, Bradley & Goos, Peter & Vandebroek, Martina, 2009. "An Efficient Algorithm for Constructing Bayesian Optimal Choice Designs," Journal of Business & Economic Statistics, American Statistical Association, vol. 27(2), pages 279-291.
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