Designing Discrete Choice Experiments

Do Optimal Designs Come at a Price

Bibliographic Data

ID2220509
AuthorsJordan J Louviere (0000-0001-7688-164X, University of Technology Sydney), Towhidul Islam (0009-0005-9224-0304, University of Guelph), Nada Wasi (0000-0002-9886-5816, University of Technology Sydney), Deborah J Street (0000-0002-4476-0656, University of Technology Sydney), Deborah Street, Leonie Burge (0000-0003-2648-4421, University of Technology Sydney)
Year2008
Volume35
Issue2
Pages360-375
Publication date2008-08-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Consumer Research (JOURNAL)
Journal identifiersISSN: 0093-5301 • E-ISSN: 1537-5277
PublisherOxford University Press (PUBLISHER • GB)
DOI10.1086/586913
OpenAlexW2132095645
LanguageEN
Citations received20
References cited47

In discrete choice experiments, design decisions are crucial for determining data quality and costs. While high statistical efficiency designs are desirable, they may come at a price if they increase the cognitive burden for respondents. We address this problem by designing 44 experiments that systematically vary numbers of attributes and attribute level differences. Our results for two product categories suggest that respondents systematically are less consistent in answering choice questions as statistical efficiency increases. This relationship holds regardless of the number of attributes and is statistically significant even if one accommodates preference heterogeneity. Implications for practice and future research are discussed

Discrete choice · Econometrics · Economics · Management science · Mathematical economics · Microeconomics · Computer Science · Consumer Market Behavior and Pricing · Decision-Making and Behavioral Economics · Economic and Environmental Valuation