Removing the Scale Factor Confound in Multinomial Logit Choice Models to Obtain Better
نویسندگان
چکیده
Multinomial logit choice models based on latent class (LC) or HB methods are utilized in marketing research today along with simulators which predict choices and market shares. However, a weakness in these models creates a potential interpretability and validity problem. The problem is that the part-worth preference (utility) parameters that are used to make such predictions are generally confounded with a scale parameter which reflects the amount of uncertainty by different respondents.
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