Eliciting and estimating reservation price: A semi-compensatory approach

Sigal Kaplan; Shlomo Bekhor; Yoram Shiftan

doi:10.1016/j.jbusres.2009.09.019

Eliciting and estimating reservation price: A semi-compensatory approach

Sigal Kaplan^*, Shlomo Bekhor, Yoram Shiftan

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

8 Scopus citations

Abstract

This study proposes a two-stage method to elicit consumers' price acceptability range. The method combines a conjunctive stage to elicit price acceptability limits with a utility-based stage to choose a preferred product variation. The method is efficient in choice situations entailing many multi-attribute product variations under partial information conditions. A semi-compensatory model complements the method by jointly representing the conjunctive stage with multiple ordered-response models and the choice stage with a multinomial logit model. A case study of ceiling reservation price (CRP) elicitation for students' rental apartment choice shows (i) CRP distribution for different product variations, (ii) model estimation unraveling CRP determinants, and (iii) linkage between CRP and transaction price.

Original language	American English
Pages (from-to)	45-50
Number of pages	6
Journal	Journal of Business Research
Volume	64
Issue number	1
DOIs	https://doi.org/10.1016/j.jbusres.2009.09.019
State	Published - Jan 2011
Externally published	Yes

Keywords

Ceiling reservation price
Direct elicitation methods
Price acceptability range
Two-stage model

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10.1016/j.jbusres.2009.09.019

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title = "Eliciting and estimating reservation price: A semi-compensatory approach",

abstract = "This study proposes a two-stage method to elicit consumers' price acceptability range. The method combines a conjunctive stage to elicit price acceptability limits with a utility-based stage to choose a preferred product variation. The method is efficient in choice situations entailing many multi-attribute product variations under partial information conditions. A semi-compensatory model complements the method by jointly representing the conjunctive stage with multiple ordered-response models and the choice stage with a multinomial logit model. A case study of ceiling reservation price (CRP) elicitation for students' rental apartment choice shows (i) CRP distribution for different product variations, (ii) model estimation unraveling CRP determinants, and (iii) linkage between CRP and transaction price.",

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author = "Sigal Kaplan and Shlomo Bekhor and Yoram Shiftan",

year = "2011",

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T2 - A semi-compensatory approach

AU - Kaplan, Sigal

AU - Bekhor, Shlomo

AU - Shiftan, Yoram

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N2 - This study proposes a two-stage method to elicit consumers' price acceptability range. The method combines a conjunctive stage to elicit price acceptability limits with a utility-based stage to choose a preferred product variation. The method is efficient in choice situations entailing many multi-attribute product variations under partial information conditions. A semi-compensatory model complements the method by jointly representing the conjunctive stage with multiple ordered-response models and the choice stage with a multinomial logit model. A case study of ceiling reservation price (CRP) elicitation for students' rental apartment choice shows (i) CRP distribution for different product variations, (ii) model estimation unraveling CRP determinants, and (iii) linkage between CRP and transaction price.

AB - This study proposes a two-stage method to elicit consumers' price acceptability range. The method combines a conjunctive stage to elicit price acceptability limits with a utility-based stage to choose a preferred product variation. The method is efficient in choice situations entailing many multi-attribute product variations under partial information conditions. A semi-compensatory model complements the method by jointly representing the conjunctive stage with multiple ordered-response models and the choice stage with a multinomial logit model. A case study of ceiling reservation price (CRP) elicitation for students' rental apartment choice shows (i) CRP distribution for different product variations, (ii) model estimation unraveling CRP determinants, and (iii) linkage between CRP and transaction price.

KW - Ceiling reservation price

KW - Direct elicitation methods

KW - Price acceptability range

KW - Two-stage model

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DO - 10.1016/j.jbusres.2009.09.019

M3 - Article

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SN - 0148-2963

VL - 64

SP - 45

EP - 50

JO - Journal of Business Research

JF - Journal of Business Research

IS - 1

ER -

Eliciting and estimating reservation price: A semi-compensatory approach

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Keywords

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