Affordable Access

Modelling consumer behaviour in a profile design using a three equation generalised Tobit model

Publication Date
  • Ddc:330
  • Design
  • Mathematics
  • Medicine


We propose the application of a three equation generalised Tobit to model different aspects of consumer behaviour in a full profile study design. The model takes into account that consumer behaviour can be measured by preference scores, purchase probability and purchase volume. We aim to avoid the drawbacks of traditional conjoint analysis where the latter two aspects are disregarded. Starting from a full profile design, we develop the appropriate questionnaire layout, the econometric model, the likelihood function and tests. The model is applied in a market entry study for an innovative medicament after a reform of Germany´s public health system in 1993-1994. JEL Classification: C35,M31,L65

There are no comments yet on this publication. Be the first to share your thoughts.