Choice Modelling

Choice modelling attempts to model the decision process of an individual or segment in a particular context. Choice modelling may be used to estimate non-market environmental benefits and costs.

Many alternative models exist in econometrics, marketing, sociometrics and other fields, including utility maximization, optimization applied to consumer theory, and a plethora of other identification strategies which may be more or less accurate depending on the data, sample, hypothesis and the particular decision being modelled. In addition Choice Modelling is regarded as the most suitable method for estimating consumers’ willingness to pay for quality improvements in multiple dimensions. The Nobel Prize for economics was awarded to a principal exponent of the Choice Modelling theory, Daniel McFadden.

Famous quotes containing the words choice and/or modelling:

“On this narrow planet, we have only the choice between two unknown worlds. One of them tempts us—ah! what a dream, to live in that!—the other stifles us at the first breath.”
—Colette [Sidonie Gabrielle Colette] (1873–1954)

“The windy springs and the blazing summers, one after another, had enriched and mellowed that flat tableland; all the human effort that had gone into it was coming back in long, sweeping lines of fertility. The changes seemed beautiful and harmonious to me; it was like watching the growth of a great man or of a great idea. I recognized every tree and sandbank and rugged draw. I found that I remembered the conformation of the land as one remembers the modelling of human faces.”
—Willa Cather (1873–1947)