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Effects coding in discrete choice experiments
Author(s) -
Bech Mickael,
GyrdHansen Dorte
Publication year - 2005
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.984
Subject(s) - coding (social sciences) , discrete choice , computer science , econometrics , mathematical economics , mathematical optimization , mathematics , statistics , machine learning
This paper discusses the inherent problems associated with applying dummy coding when including a fixed comparator in a discrete choice experiment, and seeks to illustrate the misinterpretations that may arise if the analyst is not aware of the problem. This note provides two examples of possible misinterpretations with dummy coding and how it is solved with the use of effects coding. Copyright © 2005 John Wiley & Sons, Ltd.