What is Hierarchical Bayes?

Bayesian hierarchical modelling is a statistical model in conjoint analysis is a type of modelling that estimates parameters (partworth utilities) not for market as a whole, but rather for individuals. The word “hierarchical” refers to the nested structure (individuals are nested in the market). “Bayesian” refers to the statistical paradigm of Bayesian statistics that is based on Bayes’ theorem. Amongst other benefits of HB, this approach allows more parameters (attributes and levels) to be estimated with smaller amounts of data collected from each respondent.

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