New Bayesian estimator improves accuracy of consumer preference predictions
The article introduces a new way to estimate different preferences in a group of people when making choices. They suggest using a method called Hierarchical Bayes to better capture these variations. By testing this method, they found that ignoring differences in preferences within the same person can lead to inaccurate results. This was confirmed by studying how people choose transportation modes using GPS data. The new method also runs faster than the traditional one, making it more efficient for large datasets.