Farizo B.A., Joyce J. & Soliño M. (2014) Dealing with Heterogeneous Preferences using Multilevel Mixed Models. Land Economics 90(1): 181-198

Abstract. One of the main issues on the research agenda regarding stated preference methods concerns the heterogeneity of preferences either within or between individuals. We present a multilevel mixed model (MMM) to capture heterogeneity in deterministic utility components, instead of simply leaving them to random components. MMM captures heterogeneity at different levels: individuals, locations, and groups of individuals sharing other characteristics.