A Bounded Rationality Model of Information Search and Choice in Preference Measurement
Liu (Cathy) Yang, Olivier Toubia, Martijn G. De Jong
Journal of Marketing Research · 2015 · Volume 52 · Issue 2
Abstract
It is becoming increasingly easier for researchers and practitioners to collect eye-tracking data during online preference measurement tasks. The authors develop a dynamic discrete choice model of information search and choice under bounded rationality, which they calibrate using a combination of eye-tracking and choice data. Their model extends Gabaix et al.'s (2006) directed cognition model by capturing fatigue, proximity effects, and imperfect memory encoding and by estimating individual-level parameters and partworths within a likelihood-based hierarchical Bayesian framework. The authors show that modeling eye movements as the outcome of forward-looking utility maximization improves out-of-sample predictions, enables researchers and practitioners to use shorter questionnaires, and allows better discrimination between attributes.
Keywords
preference measurement, eye tracking, dynamic discrete choice models
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