Choice Modelling

Choice Modelling

The State of the Art and the State of Practice

Edited by Stephane Hess and Andrew Daly

Choice modelling has been one of the most active fields in economics over recent years. This valuable new book contains leading contributions from academics and practitioners from across the different areas of study where choice modelling is a key analytical technique, drawn from a recent international conference.

Chapter 1: Modeling single individuals: the journey from psych lab to the app store

Jordan J. Louviere

Subjects: economics and finance, valuation, environment, valuation


The purpose of this chapter is to develop the ideas discussed in my keynote address at the ICMC in Leeds in 2010 in more detail. In particular, I will review the choice-based measurement theory and measurement methods known as Best-Worst Scaling (BWS). I will introduce BWS Cases 1 and 2, and extend the ideas from Cases 1 and 2 to Case 3 (aka DECs). En route I will briefly touch on error variance differences and stability of preferences over time. The chapter ends with some conclusions and potential future research directions. Individual level models (ILMs) are not new. Indeed, psychologists have been interested in ILMs since Thurstone (1927). However, what is surprising is that unlike marketing, transport and applied economics, there historically was little interest in the formal application of sophisticated statistical design theory and methods to “designing” choice experiments. Instead, psychologists tended to rely on paired comparisons and/or ad hoc sets of triples, quadruples, etc. This is particularly surprising in so far as psychologists are much more interested in the underlying processes involved in choice behaviours than other disciplines; hence, one would think that many would have seen the obvious connection between experimental design and one’s ability to both test and draw inferences from studies of choice behaviour.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information