acbc summed price: hb for two currencies

Question

Quick question about somethin that bothered me several times..

 

ACBC with summed price for two countries with different currencies and market prices
France: EUR from 300-1800 (4 steps in piecwise)
USA: $ Range from  300 – 3500 (4 steps + 3=7 steps in piecewise)
 

 

Can I merge the data and run a HB with a covariate “Country” for the aggregated dataset?

 

 

I just tried it:

 

That’s how partworths look like:

Very similar partworths exept for the price…and the none parameter...

Answer 1

I think that model would fit the data pretty well, though 3 cutpoints (highest values) are missing for France.  But, this would create a strange market simulator, if you are using our market simulator.  Because, a 300 would refer to 300 Euros for French respondents but 300 dollars for USA respondents.

Comments

Thank you
Just want to post a result: When using piecewise estimation for pricing - then in the country where the upper price steps are missing (no data) - the results also for the existing lower price steps  seem to be pretty biased.
After this experience I would not recommend to do it - except I did another mistake...