Evolutionary Preference/Utility Functions: A Dynamic Perspective

Psychometrika, Volume 70, Issue 1, pp 179-202, 2005

Posted: 11 Jun 2016

See all articles by Wayne S. DeSarbo

Wayne S. DeSarbo

Pennsylvania State University

Duncan K. H. Fong

Pennsylvania State University

John Liechty

Pennsylvania State University, University Park

Jennifer Chang Coupland

Pennsylvania State University

Date Written: March 1, 2005

Abstract

The collection of repeated measures in psychological research is one of the most common data collection formats employed in survey and experimental research. The behavioral decision theory literature documents the existence of the dynamic evolution of preferences that occur over time and experience due to learning, exposure to additional information, fatigue, cognitive storage limitations, etc. We introduce a Bayesian dynamic linear methodology employing an empirical Bayes estimation framework that permits the detection and modeling of such potential changes to the underlying preference utility structure of the respondent. An illustration of revealed stated preference analysis (i.e., conjoint analysis) is given involving students’ preferences for apartments and their underlying attributes and features. We also present the results of several simulations demonstrating the ability of the proposed procedure to recover a variety of different sources of dynamics that may surface with preference elicitation over repeated sequential measurement. Finally, directions for future research are discussed.

Keywords: preference analysis, dynamic models, bayesian analysis, sequential measurement

Suggested Citation

DeSarbo, Wayne S. and Fong, Duncan K. H. and Liechty, John and Chang Coupland, Jennifer, Evolutionary Preference/Utility Functions: A Dynamic Perspective (March 1, 2005). Psychometrika, Volume 70, Issue 1, pp 179-202, 2005, Available at SSRN: https://ssrn.com/abstract=2793310

Wayne S. DeSarbo (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Duncan K. H. Fong

Pennsylvania State University ( email )

308 armsby
university park, PA 16802
United States

John Liechty

Pennsylvania State University, University Park ( email )

University Park
State College, PA 16802
United States

Jennifer Chang Coupland

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

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