A stochastic multidimensional scaling procedure for the empirical determination of convex indifference curves for preference/choice analysis

Wayne S. DeSarbo, Kamel Jedidi, Joel H. Steckel

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

The vast majority of existing multidimensional scaling (MDS) procedures devised for the analysis of paired comparison preference/choice judgments are typically based on either scalar product (i.e., vector) or unfolding (i.e., ideal-point) models. Such methods tend to ignore many of the essential components of microeconomic theory including convex indifference curves, constrained utility maximization, demand functions, et cetera. This paper presents a new stochastic MDS procedure called MICROSCALE that attempts to operationalize many of these traditional microeconomic concepts. First, we briefly review several existing MDS models that operate on paired comparisons data, noting the particular nature of the utility functions implied by each class of models. These utility assumptions are then directly contrasted to those of microeconomic theory. The new maximum likelihood based procedure, MICROSCALE, is presented, as well as the technical details of the estimation procedure. The results of a Monte Carlo analysis investigating the performance of the algorithm as a number of model, data, and error factors are experimentally manipulated are provided. Finally, an illustration in consumer psychology concerning a convenience sample of thirty consumers providing paired comparisons judgments for some fourteen brands of over-the-counter analgesics is discussed.

Original languageEnglish (US)
Pages (from-to)279-307
Number of pages29
JournalPsychometrika
Volume56
Issue number2
DOIs
StatePublished - Jun 1991

All Science Journal Classification (ASJC) codes

  • Psychology(all)
  • Applied Mathematics

Fingerprint Dive into the research topics of 'A stochastic multidimensional scaling procedure for the empirical determination of convex indifference curves for preference/choice analysis'. Together they form a unique fingerprint.

Cite this