2021StatisticsOpen access

Optimal design for probit choice models with dependent utilities

Ulrike Graßhoff, Heiko Großmann, Heinz Holling, Rainer Schwabe

Open full text 3 citations

Abstract

Discrete choice experiments are a popular method to measure part worths of economic goods and in health science. These models include several attributes as explanatory variables. The commonly used multinomial logit model assumes independent utilities for different choice options. In Graßhoff et al. [Optimal design for discrete choice experiments. J Statist Plann Inference. 2013;143:167–175] we pointed out that for such a model designs turn out to be formally optimal which may comprise choice sets containing identical or nearly identical options and which are not reasonable for use in empirical discrete choice studies. To overcome this problem we introduce a novel model based on probit part-worth utilities which can account for similarities in the alternatives by supposing a dependence structure. For this model we derive locally D-optimal designs which appear to be more reasonable for applications.

Open-access reader

About this research paper

What this paper is about

Discrete choice experiments are a popular method to measure part worths of economic goods and in health science. These models include several attributes as explanatory variables. The commonly used multinomial logit model assumes independent utilities for different choice options. In Graßhoff et al. [Optimal design for discrete choice experiments. J Statist Plann Inference. 2013;143:167–175] we pointed out that for such a model designs turn out to be formally optimal which may comprise choice sets containing identical or nearly identical options and which are not reasonable for use in empirical discrete choice studies. To overcome this problem we introduce a novel model based on probit part-worth utilities which can account for similarities in the alternatives by supposing a dependence structure. For this model we derive locally D-optimal designs which appear to be more reasonable for applications.

Why it matters

OpenAlex reports 3 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Discrete choice experiments are a popular method to measure part worths of economic goods and in health science. These models include several attributes as explanatory variables. The commonly used multinomial logit model assumes independent utilities for different choice options. In Graßhoff et al. [Optimal design for discrete choice experiments. J Statist Plann Inference. 2013;143:167–175] we pointed out that for such a model designs turn out to be formally optimal which may comprise choice sets containing identical or nearly identical options and which are not reasonable for use in empirical discrete choice studies. To overcome this problem we introduce a novel model based on probit part-worth utilities which can account for similarities in the alternatives by supposing a dependence structure. For this model we derive locally D-optimal designs which appear to be more reasonable for applications.

Key concepts: Multinomial probit, Multinomial logistic regression, Discrete choice, Probit, Mixed logit, Counterintuitive, Ordered probit, Econometrics

Related papers

Back to paper searchBrowse research topicsOriginal source
Optimal design for probit choice models with dependent utilities — Research Paper | ScholarLens