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Journal ArticleDOI

The Choice Theory Approach to Market Research

Daniel McFadden
- 01 Nov 1986 - 
- Vol. 5, Iss: 4, pp 275-297
TLDR
The authors surveys economic choice theory, stressing developments that permit use of data from psychometric and conjoint experiments to produce market demand forecasts, and a new method for estimating multinomial probits is described.
Abstract
This paper surveys economic choice theory, stressing developments that permit use of data from psychometric and conjoint experiments to produce market demand forecasts. Alternatives to the widely used multinomial logit model are summarized, and a new method for estimating multinomial probits is described. An integration of choice models with attitudinal scaling and perceptual mapping, within a latent variable system, is described. Estimation of such systems under either “random effects” or “fixed effects” descriptions of heterogeneity across individuals is discussed. Issues in the use of choice models to describe responses from conjoint experiments are presented. New regression diagnostic tests for the consistency of multinomial logit representations are discussed.

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Citations
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Journal ArticleDOI

Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities

TL;DR: In this paper, a stated preference model and a revealed preference model for recreational site choice are examined and compared, and the results show that while independently estimated models appear to reflect different underlying preferences, joint estimation of model parameters, including estimation of the relative scale parameter, provides evidence that the underlying preferences are in fact similar.
Journal ArticleDOI

The Role of the Scale Parameter in the Estimation and Comparison of Multinomial Logit Models

TL;DR: This paper showed that the unit of the utility scale in a multinomial logit (MNL) model is inversely related to the utility of choice data, but it is not generally recognized that the utility in a MNL model is positively related to choice data.
Journal ArticleDOI

Understanding heterogeneous preferences in random utility models: a latent class approach.

TL;DR: In this paper, a finite mixture approach to conditional logit models is developed in whichlatent classes are used to promoteunderstanding of systematic heterogeneity in wilderness recreation, and a branded choice experiment involvingchoice of one park from a demand system was administered to a sample of recreationists.
BookDOI

Contingent valuation : a critical assessment

TL;DR: In this article, the authors present an overview and outlook on the contingent valuation measurement of non-use values, and discuss economic and legal problems using contingent valuation-based measures of nonuse value.
Journal ArticleDOI

Contemporary Guidance for Stated Preference Studies

TL;DR: In this paper, the authors present a set of guidelines for stated preference studies that are more comprehensive than those of the original National Oceanic and Atmospheric Administration (NOAA) Blue Ribbon Panel on contingent valuation, and reflect the two decades of research since that time.
References
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Journal ArticleDOI

Specification Tests in Econometrics

Jerry A. Hausman
- 01 Nov 1978 - 
TL;DR: In this article, the null hypothesis of no misspecification was used to show that an asymptotically efficient estimator must have zero covariance with its difference from a consistent but asymptonically inefficient estimator, and specification tests for a number of model specifications in econometrics.
Book

Limited-Dependent and Qualitative Variables in Econometrics

G. S. Maddala
TL;DR: In this article, the authors present a survey of the use of truncated distributions in the context of unions and wages, and some results on truncated distribution Bibliography Index and references therein.
Book ChapterDOI

A New Approach to Consumer Theory

TL;DR: In this article, the authors extend activity analysis into consumption theory and assume that goods possess, or give rise to, multiple characteristics in fixed proportions and that it is these characteristics, not goods themselves, on which the consumer's preferences are exercised.
Journal ArticleDOI

Conjoint Analysis in Consumer Research: Issues and Outlook

TL;DR: In this paper, the authors discuss various issues involved in implementing conjoint analysis and describe some new technical developments and application areas for the methodology, which has been applied to a wide variety of problems in consumer research.