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Statistical Properties of Consideration Sets

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Author Info
Richard Carson
Jordan Louviere (School of Marketing, University of Technology, Sydney)

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Abstract

Consideration sets have become a central concept in the study of consumer behavior. Frequently, consumers are asked to split choice alternatives into those that that they would consider and those that they would not. Information on alternatives not in the consideration set is then typically not used in subsequent analysis. This practice is shown to lead to biased estimates of preference parameters. The reason for this is shown to be a form of sample selection bias.

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File URL: http://repositories.cdlib.org/cgi/viewcontent.cgi?article=1066&context=ucsdecon
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Publisher Info
Paper provided by Department of Economics, UC San Diego in its series University of California at San Diego, Economics Working Paper Series with number 2006-07.

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Date of creation: 01 Jul 2006
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Handle: RePEc:cdl:ucsdec:2006-07

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Related research
Keywords: choice models; random utility; sample selection bias;

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This page was last updated on 2009-11-17.

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