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Constraining utilities to conform to a priori reference orders

Dear all,

I got a set of categorial attributes (without price) in my ACBC study and most of them have an a priori reference order (e.g. the levels are basically equivalent to a low-medium-high scale, just in domain-specific wording).

In the HB estimation, should I constrain those attributes with rational order or rather not?
asked Apr 26, 2021 by danny Bronze (1,310 points)

1 Answer

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Best answer
There isn't a clear answer for this.  I'd say in most situations you probably don't want to impose constraints on the a priori order attributes.  However, under the following two situations I probably would:

1) Your sample size is unusually small (say, 60 or fewer respondents)
2) Individual-level classification accuracy or individual-level prediction was the main goal of your study (usually market-level /segment-level prediction is the goal).
answered Apr 26, 2021 by Bryan Orme Platinum Sawtooth Software, Inc. (196,615 points)
selected Apr 26, 2021 by danny