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3-way interaction with CBC

Is there an option in Sawtooth Lighthouse to measure 3-way interactions between CBC Utilites? In my case I want to test whether there is an exisiting interaction between the attributes software quality, software upgradability and price.

Thanks for your help!
asked Jan 16, 2017 by anonymous

1 Answer

0 votes
There is a power trick to accomplish this.

First, export your CBC data to .CSV format (the format that our standalone CBC/HB and standalone Latent Class programs can read).

Modify the .CSV file in Excel to collapse two attributes into 1 column.  For example, if the two attributes have 2 and 3 levels respectively, then the collapsed column will have 2x3=6 levels.

Then, open the modified .CSV file within either CBC/HB or Latent Class software (remember, you can run a 1-group latent class solution if you want to accomplish the same thing as aggregate logit).  Estimate the model with the collapsed attribute interacting with the 3rd attribute.  Now you have a 3-way interaction.

You can read the latent class or .HBU output files containing the utilities into our standalone market simulator for conducting market simulations.

If you are licensed to use CBC within Lighthouse Studio, then you automatically have licenses for the standalone versions of CBC/HB, Latent Class, and the Sawtooth Software Choice Simulator.  You can download them from our website and they look to the same license permissions that you already are using for Lighthouse Studio.
answered Jan 16, 2017 by Bryan Orme Platinum Sawtooth Software, Inc. (142,515 points)
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