Recommendations on the use of Bayesian Optimal Designs for Choice Experiments

KBI Working Paper No. 0617

19 Pages Posted: 7 Mar 2007

See all articles by Roselinde Kessels

Roselinde Kessels

University of Antwerp - Faculty of Applied Economics

Bradley Jones

SAS Institute Inc.

Peter Goos

University of Antwerp; KU Leuven

Martina L. Vandebroek

Katholieke Universiteit Leuven - Faculty of Business and Economics

Date Written: 2006

Abstract

In this paper, we argue that some of the prior parameter distributions used in the literature for the construction of Bayesian optimal designs are internally inconsistent. We rectify this error and provide practical advice on how to properly specify the prior parameter distribution. Also, we present two pertinent examples to illustrate that Bayesian optimal designs generally outperform utility-neutral optimal designs that are based on linear design principles.

Keywords: Bayesian optimal designs, Choice experiments, Prior parameter distribution, Utility-neutral optimal designs

Suggested Citation

Kessels, Roselinde and Jones, Bradley and Goos, Peter and Goos, Peter and Vandebroek, Martina L., Recommendations on the use of Bayesian Optimal Designs for Choice Experiments (2006). KBI Working Paper No. 0617, Available at SSRN: https://ssrn.com/abstract=968586 or http://dx.doi.org/10.2139/ssrn.968586

Roselinde Kessels (Contact Author)

University of Antwerp - Faculty of Applied Economics ( email )

Prinsstraat 13
Antwerp, B-2000
Belgium

Bradley Jones

SAS Institute Inc.

100 SAS Campus Drive
Cary, NC 27513-2414
United States

Peter Goos

University of Antwerp ( email )

Prinsstraat 13
Antwerp, 2000
Belgium

KU Leuven ( email )

Oude Markt 13
Leuven, Vlaams-Brabant 3000
Belgium

Martina L. Vandebroek

Katholieke Universiteit Leuven - Faculty of Business and Economics ( email )

Naamsestraat 69
B-3000 Leuven
Belgium