Experimental Designs for Discrete Choice Set Experiments

Abstract

A discrete choice experiment is an attribute based method that gives further insight into how individuals develop preferences for particular attributes. These are used in the traditional areas in health economics, transportation, and marketing and increasingly beyond these areas. These experiments enable researchers to model choice in an explicit competitive context, thus realistically emulating market decisions. A choice design consists of choice sets composed of several alternatives, each defined as combinations of different attribute levels. A good choice design is efficient, meaning that the parameters of the choice model are estimated with maximum precision. Here, an example of obtaining discrete choice sets using factorial combinations has been described.