A Heterogeneous Bayesian Regression Model for Cross-Sectional Data Involving a Single Observation Per Response Unit

Psychometrika, Volume 77, Issue 2 (2012), Page 293-314

42 Pages Posted: 30 Aug 2011 Last revised: 9 Mar 2013

See all articles by Duncan K. H. Fong

Duncan K. H. Fong

Pennsylvania State University

Peter Ebbes

HEC Paris - Marketing

Wayne S. DeSarbo

Pennsylvania State University

Date Written: 2012

Abstract

Multiple regression is frequently used across the various social sciences to analyze cross-sectional data. However, it can often times be challenging to justify the assumption of common regression coefficients across all respondents. This manuscript presents a heterogeneous Bayesian regression model that enables the estimation of individual level regression coefficients in cross sectional data involving a single observation per response unit. A Gibbs sampling algorithm is developed to implement the proposed Bayesian methodology. A Monte Carlo simulation study is constructed to assess the performance of the proposed methodology across a number of experimental factors. We then apply the proposed method to analyze data collected from a consumer psychology study that examines the differential importance of price and quality in determining perceived value evaluations.

Keywords: Bayesian estimation, cross-sectional analysis, heterogeneity, consumer psychology, inequality sign constraints

JEL Classification: C1, C11, C21, C5, M30

Suggested Citation

Fong, Duncan K. H. and Ebbes, Peter and DeSarbo, Wayne S., A Heterogeneous Bayesian Regression Model for Cross-Sectional Data Involving a Single Observation Per Response Unit (2012). Psychometrika, Volume 77, Issue 2 (2012), Page 293-314, Available at SSRN: https://ssrn.com/abstract=1919482

Duncan K. H. Fong

Pennsylvania State University ( email )

308 armsby
university park, PA 16802
United States

Peter Ebbes (Contact Author)

HEC Paris - Marketing ( email )

Paris
France

Wayne S. DeSarbo

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
115
Abstract Views
1,146
rank
260,246
PlumX Metrics