The Role of Preference Axioms and Respondent Behaviour in Statistical Models for Discrete Choice

Jens Leth Hougaard, Tue Tjur, Lars Peter Østerdal

    Research output: Working paperResearch

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    Abstract

    Discrete choice experiments are widely used in relation to healthcare. A stream of recent literature therefore aims at testing the validityof the underlying preference axioms of completeness and transitivity,and detecting other preference phenomena such as unstability, learn-ing/tiredness effects, ordering effects, dominance, etc. Unfortunatelythere seems to be some confusion about what is actually being tested,and the link between the statistical tests performed and the relevantunderlying model of respondent behaviour has not been explored inthis literature. The present paper tries to clarify the notions involvedand discuss what can be tested in a general frequency of choice frame-work and more specifically in a random utility model.
    Original languageEnglish
    Place of PublicationKøbenhavn
    PublisherCenter for Statistics
    Number of pages17
    Publication statusPublished - 2004
    SeriesPreprint
    Number1/2004

    Keywords

    • Discrete choice experiments
    • Random utility model
    • Stated preference
    • Completeness
    • Transitivity
    • Statistical tests

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