Choice set
A choice set is a finite collection of available options selected from a larger theoretical decision space. For example, a consumer has thousands of conceivable alternatives when purchasing a car, far
Thinking, Fast and Slow
Thinking, Fast and Slow is a 2011 book by psychologist Daniel Kahneman. The book's main thesis is that of a dichotomy between two modes of thought: "System 1" is fast, instinctive and emotional; "Syst
Utility
As a topic of economics, utility is used to model worth or value. Its usage has evolved significantly over time. The term was introduced initially as a measure of pleasure or happiness as part of the
Preference-rank translation
Preference-rank translation is a mathematical technique used by marketers to convert stated preferences into purchase probabilities, that is, into an estimate of actual buying behaviour. It takes surv
Discrete choice
In economics, discrete choice models, or qualitative choice models, describe, explain, and predict choices between two or more discrete alternatives, such as entering or not entering the labor market,
Dynamic discrete choice
Dynamic discrete choice (DDC) models, also known as discrete choice models of dynamic programming, model an agent's choices over discrete options that have future implications. Rather than assuming ob
Choice modelling
Choice modelling attempts to model the decision process of an individual or segment via revealed preferences or stated preferences made in a particular context or contexts. Typically, it attempts to u
Preference regression
Preference regression is a statistical technique used by marketers to determine consumers’ preferred core benefits. It usually supplements product positioning techniques like multi dimensional scaling
Regret (decision theory)
In decision theory, on making decisions under uncertainty—should information about the best course of action arrive after taking a fixed decision—the human emotional response of regret is often experi
Trade-off talking rational economic person
Trade-off talking rational economic person (TOTREP) is one term, among others, used to denote, in the field of choice analysis, the rational, human agent of economic decisions.
Polynomial conjoint measurement
Polynomial conjoint measurement is an extension of the theory of conjoint measurement to three or more attributes. It was initially developed by the mathematical psychologists David Krantz (1968) and
Maximum score estimator
In statistics and econometrics, the maximum score estimator is a nonparametric estimator for discrete choice models developed by Charles Manski in 1975. Unlike the multinomial probit and multinomial l
Mixed logit
Mixed logit is a fully general statistical model for examining discrete choices. It overcomes three important limitations of the standard logit model by allowing for random taste variation across choo
Choice model simulation
Although the concept choice models is widely understood and practiced these days, it is often difficult to acquire hands-on knowledge in simulating choice models. While many stat packages provide usef
Best–worst scaling
Best–worst scaling (BWS) techniques involve choice modelling (or discrete choice experiment – "DCE") and were invented by Jordan Louviere in 1987 while on the faculty at the University of Alberta. In