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WTP for main and interaction effects

Dear ysm1nz,

Thank you for answering my question. Would you please help me out on a followup question or anyone who can answer this would be really helpful?

You mentioned: "Add up the attribute coefficients of the levels you want and divide the total by the price coefficient. That is of course assuming utility is linear-in-parameters and there are no interaction effects or income effects.".

I have no income effects captured in the output from the respondents.
Well, I do have interaction effects when I combined certain service attributes with a standard error < 0.1 (as mentioned in guideline). This affected the utility scores in CBC-HB estimates.

Secondly, as mentioned in the forum, when there is just a standalone subscription without any additional service features, the WTP is extremely  high.

What I mean is the following:

For my case, for a respondent for example,
Price point to be checked: $30
Price range: $90
Part-worth utility of this $90 price range  = -0.13477
Part-worth utility of $30 = -39.38115
So, as per the formula, WTP for $30 subscription = $90 * (-39.38115 / -0.13477) = $26,298.90554

This seems to be very very large and is not realistic

Kindly advise and help me.

asked Apr 13, 2018 by sacharya (490 points)

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