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An Incentive Compatible Conjoint Ranking Mechanism
Author(s) -
Lusk Jayson L.,
Fields Deacue,
Prevatt Walt
Publication year - 2008
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.1467-8276.2007.01119.x
Subject(s) - incentive , ranking (information retrieval) , incentive compatibility , conjoint analysis , purchasing , rank (graph theory) , mechanism (biology) , product (mathematics) , microeconomics , economics , mechanism design , econometrics , marketing , business , mathematics , computer science , preference , philosophy , geometry , epistemology , combinatorics , machine learning
A simple method for making ranking‐based conjoint analysis incentive compatible is proposed. The incentive compatible mechanism involves people purchasing a product profile with a probability proportional to its assigned rank. In an empirical application related to consumer preferences for beef attributes, we find that the forecasted market share for a new pasture‐raised steak obtained using incentive‐compatible rankings was significantly greater than that implied from traditional hypothetical conjoint rankings. People's rankings of ground beef products were not affected by the mechanism or by information about pasture‐raised beef.