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Price Function in ACBC


short question: I used the summed pricing approach for my ACBC study. Lowest Price was 7 Euro and highest 29 Euro. Why does HB calculate utilities for 7 Euro and 28,6 Euro (not 29)?

Thanks a lot!
asked Nov 5, 2015 by anonymous

1 Answer

0 votes
By default, the ACBC software examines your questionnaire settings to try to figure out the maximum theoretically possible price it could have shown respondents and the lowest possible price.  Most of the times, it is right.

By default, ACBC is estimating a slope function (a beta) to summed price.  By default it will compute the slope and then move into your market simulator (and into your utility file) the discrete utility associated with the low and high price point it guessed at from the questionnaire settings.

You can modify those discrete price points that it exports to the utilities file and will be used in the market simulator if BEFORE estimating HB you modify the price points used.  Go to the ACBC HB Settings, then click the  Attribute Coding dialog, then click the Price attribute in the left panel.  Now, in the right panel you see the discrete price points that HB will write out to the utility file.  You can modify the price points here, including inserting intermediate price points if you want those reported in the utility file and seen in the market simulator.
answered Nov 6, 2015 by Bryan Orme Platinum Sawtooth Software, Inc. (128,265 points)