I have a synthetic choice data that includes pre-defined individual preferences.
The individual preferences are intentionally defined to generate segments.
Now, I am thinking two different HB fitting scenarios.
1. HB fit for population. Then, compute the segment-level utilities
2. Divide the data into a few segments. Then, fit HB for each segment.
In the result of the scenario 1, I observed some over-estimated utilities near zero . I guess this is due to the normal distribution assumption for prior.
The scenario 2 resulted in plausible results that meet my expectation (?) about the pre-defined preferences.
Is is possible to use segmented choice data?