Using Machine Learning to Test Causal Hypotheses in Conjoint Analysis
- URL: http://arxiv.org/abs/2201.08343v1
- Date: Thu, 20 Jan 2022 18:23:12 GMT
- Title: Using Machine Learning to Test Causal Hypotheses in Conjoint Analysis
- Authors: Dae Woong Ham, Kosuke Imai, Lucas Janson
- Abstract summary: We propose a new hypothesis testing approach based on the conditional randomization test.
Our methodology is solely based on the randomization of factors, and hence is free from assumptions.
- Score: 5.064097093575691
- License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
- Abstract: Conjoint analysis is a popular experimental design used to measure
multidimensional preferences. Researchers examine how varying a factor of
interest, while controlling for other relevant factors, influences
decision-making. Currently, there exist two methodological approaches to
analyzing data from a conjoint experiment. The first focuses on estimating the
average marginal effects of each factor while averaging over the other factors.
Although this allows for straightforward design-based estimation, the results
critically depend on the distribution of other factors and how interaction
effects are aggregated. An alternative model-based approach can compute various
quantities of interest, but requires researchers to correctly specify the
model, a challenging task for conjoint analysis with many factors and possible
interactions. In addition, a commonly used logistic regression has poor
statistical properties even with a moderate number of factors when
incorporating interactions. We propose a new hypothesis testing approach based
on the conditional randomization test to answer the most fundamental question
of conjoint analysis: Does a factor of interest matter {\it in any way} given
the other factors? Our methodology is solely based on the randomization of
factors, and hence is free from assumptions. Yet, it allows researchers to use
any test statistic, including those based on complex machine learning
algorithms. As a result, we are able to combine the strengths of the existing
design-based and model-based approaches. We illustrate the proposed methodology
through conjoint analysis of immigration preferences and political candidate
evaluation. We also extend the proposed approach to test for regularity
assumptions commonly used in conjoint analysis.
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