Bayesian Analysis of Heterogeneous Mediation

69 Pages Posted: 29 Apr 2015 Last revised: 17 Nov 2018

See all articles by Tatiana L. Dyachenko

Tatiana L. Dyachenko

Georgetown University - McDonough School of Business

Greg M. Allenby

Ohio State University (OSU) - Department of Marketing and Logistics

Date Written: November 17, 2018

Abstract

Mediation analysis is used to study the relationship between stimulus and response in the presence of intermediate, generative variables. The traditional approach to mediation analysis is based on the statistical significance of coefficients in aggregate regression models that assume homogeneity of responses. Our approach shows that the results from these models are neither necessary nor sufficient to claim the presence of mediation for specific individuals. The proposed Bayesian mixture model for mediation analysis incorporates heterogeneity in mediating behavior. The Bayesian nature of the model allows researchers to compute the probability that speci c respondents follow a mediated versus a general relationship between stimulus and response, where the mediating relationship reflects conditional statistical independence. The empirical investigation provides support for the proposed mixture model and demonstrates additional insights that can enhance the understanding of the mediating mechanism.

Keywords: Mediation analysis, mixture model, structural heterogeneity, conditional independence

JEL Classification: C11, C19, M31

Suggested Citation

Dyachenko, Tatiana L. and Allenby, Greg M., Bayesian Analysis of Heterogeneous Mediation (November 17, 2018). Georgetown McDonough School of Business Research Paper No. 2600140. Available at SSRN: https://ssrn.com/abstract=2600140 or http://dx.doi.org/10.2139/ssrn.2600140

Tatiana L. Dyachenko (Contact Author)

Georgetown University - McDonough School of Business ( email )

581 Hariri Bld
37 & O street
Washington, DC 20057
United States

Greg M. Allenby

Ohio State University (OSU) - Department of Marketing and Logistics ( email )

Fisher Hall 524
2100 Neil Ave
Columbus, OH 43210
United States

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