A Bayesian Vector Multidimensional Scaling Procedure Incorporating Dimension Reparameterization with Variable Selection

Psychometrika, Volume 80, Issue 4, pp 1043–1065, 2015

Posted: 18 Jun 2016

See all articles by Duncan K. H. Fong

Duncan K. H. Fong

Pennsylvania State University

Wayne S. DeSarbo

Pennsylvania State University

Zhe Chen

Acadian Asset Management; University of New South Wales (UNSW); Centre for International Finance and Regulation (CIFR)

Zhuying Xu

Pennsylvania State University

Date Written: December 2015

Abstract

We propose a two-way Bayesian vector spatial procedure incorporating dimension reparameterization with a variable selection option to determine the dimensionality and simultaneously identify the significant covariates that help interpret the derived dimensions in the joint space map. We discuss how we solve identifiability problems in a Bayesian context that are associated with the two-way vector spatial model, and demonstrate through a simulation study how our proposed model outperforms a popular benchmark model. In addition, an empirical application dealing with consumers’ ratings of large sport utility vehicles is presented to illustrate the proposed methodology. We are able to obtain interpretable and managerially insightful results from our proposed model with variable selection in comparison with the benchmark model.

Keywords: bayesian analysis, multidimensional scaling, vector model, variable selection, QR decomposition, reparameterization, consumer psychology

Suggested Citation

Fong, Duncan K. H. and DeSarbo, Wayne S. and Chen, Zhe and Xu, Zhuying, A Bayesian Vector Multidimensional Scaling Procedure Incorporating Dimension Reparameterization with Variable Selection (December 2015). Psychometrika, Volume 80, Issue 4, pp 1043–1065, 2015. Available at SSRN: https://ssrn.com/abstract=2796780

Duncan K. H. Fong (Contact Author)

Pennsylvania State University ( email )

308 armsby
university park, PA 16802
United States

Wayne S. DeSarbo

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Zhe Chen

Acadian Asset Management ( email )

260 Franklin Street
Boston, MA 02110
United States

University of New South Wales (UNSW)

Kensington
High St
Sydney, NSW 2052
Australia

Centre for International Finance and Regulation (CIFR) ( email )

Level 7, UNSW CBD Campus
1 O'Connell Street
Sydney, NSW 2000
Australia

Zhuying Xu

Pennsylvania State University

University Park
State College, PA 16802
United States

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