PREDICTING PARTICIPATION INTENTIONS FOR OPTIONAL ENERGY SERVICES

Citation
Mv. Bala et al., PREDICTING PARTICIPATION INTENTIONS FOR OPTIONAL ENERGY SERVICES, Resource and energy economics, 20(3), 1998, pp. 287-301
Citations number
10
Categorie Soggetti
Environmental Studies",Economics
ISSN journal
09287655
Volume
20
Issue
3
Year of publication
1998
Pages
287 - 301
Database
ISI
SICI code
0928-7655(1998)20:3<287:PPIFOE>2.0.ZU;2-3
Abstract
In this paper we use conjoint analysis to predict participation intent ions for an optional energy service offered by Niagara Mohawk Power Co rporation (NMPC). In contrast to conjoint studies that use ordinary le ast squares regression to estimate a utility or preference function, w e use an ordered probit model. For validation, we compare predicted pa rticipation from the probit model to actual behavior. We also compare predictions from Sawtooth Software's Adaptive Conjoint Analysis (ACA) software to actual behaviour. The predictions obtained from the ordere d probit model are closer to actual behaviour than the predictions obt ained from the linear model. We discuss possible reasons and implicati ons for future research. (C) 1998 Elsevier Science B.V. All rights res erved.