Experimental analysis of choice

Abstract

Our paper reviews and summarizes the state-of-the-art in the design and analysis of consumer choice experiments. We emphasize experiments involving discrete choices, but also review related work on the design and analysis of ranking and resource allocation experiments. Major topics include 1) Choice experiments and conjoint analysis, 2) Random utility and constant utility probabilistic discrete choice models as a theoretical foundation for choice experiments, and 3) The design of choice experiments. Other topics include a) Experimental procedure, b) Model specification, c) Model estimation, and d) Model validation. Suggestions for future research are made with respect to each topic.