I have a question regarding a CBC design where I need your experience and tips. I would like to conduct a CBC in the field of demand side management. The households have the possibility to support the energy system with different devices.
Attribute 1: Device
Level 1: Electric car
Level 2: Heat Pump
Level 3: Dishwasher
Level 4: Washing machine
There will also be a price attribute with three levels. However, the price attribute does not represent an amount that the participants have to pay, but a compensation for their restrictions in the use of their devices.
Attribute 2: Price/Compensation
Level 1: Low
Level 2: Mid
Level 3: High
Furthermore, the compensation is paid in three types.
Attribute 3: Type of compensation
Level 1: Fixed compensation
Level 2: Variable compensation
Level 3: Fixed compensation + variable compensation
In the case of fixed compensation, a one-off amount is paid at the end of the year, which is independent of the number of flexibility calls. With variable compensation, no one-off amount is paid at the end of the year, but each flexibility call is compensated. The number of calls per year is estimated, but uncertain. Level three is a combination of both.
Now the price or compensation displayed depends on the attributes 1 and 2, because e.g. the electric car has a much higher electrical power than the dishwasher. If the participants decide to use the dishwasher, they will receive a much smaller amount of money. This constellation is comparable to the package size example for conditional pricing on the Sawtooth website.
Now it gets more complicated: I would also like to consider the type of compensation when displaying the alternatives in the choice sets. Example of a choice set:
Type of compensation: 50€ per year fixed; 0€ per flexibility call.
Device: Electric car
Type of compensation: 200€ per year fixed; 5€ per flexibility call, whereby we forecast 20 calls per year.
Device: Washing machine
Type of compensation: 25€ per year fixed; 1.25€ per flexibility call, whereby we forecast 20 calls per year.
The aim is that the prices displayed are based on the conditional prices from attributes 1 and 2. For example, it is calculated that for "compensation = medium" and "device = dishwasher" the amount is 50€. However, since the type of "compensation = variable compensation", the amount of €50 is divided by the number of calls per year (e.g. 20), i.e. €2.50 per flexibility call.
But if the "type of compensation = fixed compensation + variable compensation", then the fixed amount should be 25€ (50% of the conditional price), and the remaining 25€ is divided by 20, i.e. 1.25€ per calls.
In summary, there are three overlapping factors that influence the prices displayed:
(b) Price levels.
(c) Type of compensation.
Now the questions arise to me, whether this (i) can be implemented in the software and (ii) does it make any sense at all, since I will probably not be able to separate the three effects later in the analysis?
I look forward to your opinions and tips.