Accounting for Interaction and Individual Specific Effects in an Analysis of International Air Traveler Preferences

Abstract

selection decision based on contingency theory. Previous work has focused on main effects without e����ploring the significance of interaction or individual heterogeneity effects. Contingency theory suggests contextual and individual factors are important in enhancing model predictions. ����Using conjoint and ordered probit analyses, we ����find that including interaction and individual specific intercepts alters the impacts of main effect variables. ����Furthermore, accounting for interaction and individual heterogeneity increases the predictive ability of the preference model for airline travelers.