Differentiated Bayesian Conjoint Choice Designs

24 Pages Posted: 28 Mar 2006

See all articles by Zsolt Sándor

Zsolt Sándor

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Michel Wedel

University of Maryland - Robert H. Smith School of Business, Marketing Department; University of Groningen - Faculty of Economics and Business

Date Written: 29 2003 4,

Abstract

Previous conjoint choice design construction procedures have produced a single design that is administered to all subjects. This paper proposes to construct a limited set of different designs. The designs are constructed in a Bayesian fashion, taking into account prior uncertainty about the parameter values. A computational procedure is developed that enables fast and easy implementation in practice. Even though the number of such different designs in the optimal set is small, it is demonstrated through a Monte Carlo study that substantial gains in efficiency are achieved over aggregate designs.

Keywords: experiments, consumer preferences, discrete choice, multinomial logit, estimator efficiency

JEL Classification: M, M31, C44, C10

Suggested Citation

Sándor, Zsolt and Wedel, Michel, Differentiated Bayesian Conjoint Choice Designs (29 2003 4,). ERIM Report Series Reference No. ERS-2003-016-MKT. Available at SSRN: https://ssrn.com/abstract=411661

Zsolt Sándor (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Michel Wedel

University of Maryland - Robert H. Smith School of Business, Marketing Department ( email )

College Park, MD 20742
United States
301.405.2162 (Phone)
301.405.0146 (Fax)

HOME PAGE: http://www.rhsmith.umd.edu/marketing/faculty/wedel.html

University of Groningen - Faculty of Economics and Business ( email )

Postbus 72
9700 AB Groningen
Netherlands

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