As presented at the 2023 A&I Summit, we cover three methods for estimating Willingness to Pay (WTP) from conjoint analysis data. The first is the common algebraic approach. The second is the market simulation approach as implemented in Sawtooth Software’s market simulator. The third approach is one published by Allenby et al. in 2014 that takes a social surplus focus—and is very easy to implement in Excel. Depending on your aims, some approaches are more appropriate and work better than others…and some are harder to implement and deliver to clients than others. And, one of the techniques is dominated on most every aspect.
