Consumer Choice Modelling in Product Line Pricing: Reservation Prices and Discrete Choice Theory

The authors integrate concepts in conjoint analysis and discrete choice theory in econometrics to develop a new approach to the design and analysis of controlled consumer choice or resource allocation experiments. The article is concerned with estimating the parameters of conjoint-type functions from discrete choice or allocation data. Emphasis is placed on the multinomial logit model and aggregate choice or allocation data to illustrate the concepts in a series of empirical examples ranging from simple to complex. The authors present limited external validity evidence to support the approach and make comparisons with traditional conjoint approaches.

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Discrete Choice Modelling (Teil I)

WiSt - Wirtschaftswissenschaftliches Studium ◽

10.15358/0340-1650-2008-7-356 ◽

2008 ◽

Vol 37 (7) ◽

pp. 356-362 ◽

Cited By ~ 1

Author(s):

Jochen Gönsch ◽

Robert Klein ◽

Claudius Steinhardt

Keyword(s):

Discrete Choice ◽

Choice Modelling ◽

Discrete Choice Modelling

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Applied Discrete-Choice Modelling Approach for Analysing Risk Exposure in the Cost Estimates of Construction Projects

10.15396/eres1999_196 ◽

1999 ◽

Keyword(s):

Discrete Choice ◽

Construction Projects ◽

Risk Exposure ◽

Choice Modelling ◽

Cost Estimates ◽

Discrete Choice Modelling ◽

The Cost ◽

Modelling Approach

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Loss Aversion and Consumption Choice: Theory and Experimental Evidence

American Economic Journal Microeconomics ◽

10.1257/mic.20130104 ◽

2015 ◽

Vol 7 (2) ◽

pp. 101-120 ◽

Cited By ~ 20

Author(s):

Heiko Karle ◽

Georg Kirchsteiger ◽

Martin Peitz

Keyword(s):

Experimental Evidence ◽

Loss Aversion ◽

Consumer Choice ◽

Rational Expectations ◽

Choice Theory ◽

Choice Model ◽

Reference Points ◽

Price Uncertainty ◽

Theoretical Predictions

We analyze a consumer-choice model with price uncertainty, loss aversion, and expectation-based reference points. The implications of this model are tested in an experiment in which participants have to make a consumption choice between two sandwiches. Participants differ in their reported taste for the two sandwiches and in their degree of loss aversion, which we measure separately. We find that more-loss-averse participants are more likely to opt for the cheaper sandwich, in line with theoretical predictions. The estimates in the model with rational expectations are slightly more significant than those with naïve expectations. (JEL D11, D12, D84, M31)

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