BRADLEY–TERRY CHOICE PROBABILITY IN MAXIMUM LIKELIHOOD AND EIGENPROBLEM SOLUTIONS

Stan Lipovetsky ()
Additional contact information
Stan Lipovetsky: GfK Custom Research North America, 8401 Golden Valley Road Minneapolis, MN 55427, USA

International Journal of Information Technology & Decision Making (IJITDM), 2008, vol. 07, issue 03, 395-405

Abstract: The Bradley–Terry model (BT) is commonly used for evaluation of choice preferences by paired comparison data in various areas of applied psychology, advertising, and marketing research. The estimation of BT parameters of preference is usually achieved in an iterative procedure based on the maximum likelihood approach. In this paper an easier way of finding these parameters via an eigenproblem is considered. This approach corresponds to solving a Chapman–Kolmogorov system of equations to estimate the steady-state probabilities of the compared items. Both techniques produce very similar results, but the eigenvector solution is simpler for applications and suggests an interpretation of BT preferences as the choice probabilities. The suggested approach can facilitate the paired comparison estimations and be utilized in various practical aims of managerial decision making.

Keywords: Paired comparisons; Bradley–Terry; Chapman–Kolmogorov equations (search for similar items in EconPapers)
Date: 2008
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219622008003010
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijitdm:v:07:y:2008:i:03:n:s0219622008003010

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0219622008003010

Access Statistics for this article

International Journal of Information Technology & Decision Making (IJITDM) is currently edited by Yong Shi

More articles in International Journal of Information Technology & Decision Making (IJITDM) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().