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Means matter, but variance matter too: Decomposing response latency influences on variance heterogeneity in stated preference experiments

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Abstract

Response time latencies have been shown to influence consumer’s choice behaviour in choice-based-conjoint studies. The literature has shown that response time latencies affect the mean outputs of parameter estimates derived from models of discrete choice. In this paper, we add further insight into the influences response time latencies have on such models by modelling latent response information associated with the variance of random parameter distributions through parameterisation of variance heterogeneity (or heteroskedasticity). We demonstrate that response time latencies influence not only the means of random parameter distributions, but also the variances, and that failure to account for both may result in incorrect model inferences being drawn.

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Authors and Affiliations

  1. Institute of Transport Studies, Faculty of Economics and Business, The University of Sydney, NSW, 2006, Australia

    John M. Rose

  2. Discipline of Marketing, Faculty of Economics and Business, The University of Sydney, NSW, 2006, Australia

    Iain R. Black

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  1. John M. Rose
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  2. Iain R. Black
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Correspondence to Iain R. Black.

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Rose, J.M., Black, I.R. Means matter, but variance matter too: Decomposing response latency influences on variance heterogeneity in stated preference experiments. Market Lett 17, 295–310 (2006). https://doi.org/10.1007/s11002-006-8632-3

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  • DOI: https://doi.org/10.1007/s11002-006-8632-3

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