Faculty Research Differentiated Baysian Conjoint Choice Designs

Previous conjoint choice design construction procedures have produced a single design that is administered to all subjects. This paper proposes to construct a limited set of different designs. The designs are constructed in a Bayesian fashion, taking into account prior uncertainty about the parameter values. A computational procedure is developed that enables fast and easy implementation in practice. Even though the number of such different designs in the optimal set is small, it is demonstrated through a Monte Carlo study that substantial gains in efficiency are achieved over aggregate designs. 1 Postdoc Researcher, Econometric Institute, Erasmus University Rotterdam, P.O. Box 1738, 3000 DR Rotterdam, The Netherlands, E-mail: [email protected]. 2 Dwight F. Benton Professor of Marketing, University of Michigan Business School, 701 Tappan Street, 481091234 MI, Ann Arbor, USA, E-mail: [email protected].