Methods to Reduce IIA Problems in Market Simulations

The common and well-known IIA (Independence from Irrelevant Alternatives) property has also been called the “red-bus/bus-bus problem”. Conjoint analysis market simulators suffer to various degrees from this problem. But, there are well-established ways to correct for the problem and get better predictions of actual market shares. Come learn about these practical solutions to significantly reduce the IIA problems! Some solutions are built into Sawtooth Software’s market simulator. Other solutions you can implement yourself in Excel simulators.