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A simulation-based method for testing an abnormally high incidence of specific choice patterns in discrete choice data

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  • Mariel, Petr
  • Artabe, Alaitz

Abstract

This paper introduces a simulation-based method designed to detect unusually high frequencies of specific choice patterns in discrete choice data. Its empirical size and power are then evaluated through a series of simulation exercises. The results show that the empirical size is consistently lower than the assumed theoretical significance level, and that the test power approaches 100 % when the observed choice pattern appears approximately 2.5 times more frequently than expected. The proposed test is applied to a real data set obtained by means of a discrete choice experiment focused on air pollution in South Delhi, India.

Suggested Citation

  • Mariel, Petr & Artabe, Alaitz, 2025. "A simulation-based method for testing an abnormally high incidence of specific choice patterns in discrete choice data," Resource and Energy Economics, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:resene:v:82:y:2025:i:c:s092876552500020x
    DOI: 10.1016/j.reseneeco.2025.101496
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