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Extrapolation of WTP with Sampling of Scenarios, Is There a Better Way?

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Clients often request feature-level willingness to pay (WTP) insights, but additive methods face scaling and feasibility issues. Sawtooth�s Sampling of Scenarios (SOS) improves realism through scenario averaging yet still overstates values. SKIM is testing alternative extrapolation functions (quadratic, exponential, and piecewise) to better capture price responses, with preliminary results showing a 16% WTP reduction using quadratic extrapolation versus linear. Future work also includes broader scaling approaches comparing �all-features-on� versus �all-features-off� simulations.

Cynthia Sahm
SKIM Group
Howard Huang
SKIM Group
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