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What does Sawtooth do when optimizing both share of preferences and revenue?

Hello everyone,

I am currently working on a situation where I am introducing a new product facing no competition. I am running simulations to see what the optimal features of the products are based on survey responses. I am trying to understand what does Sawtooth technically make when it optimizes both share of preferences and revenues? How is it different from optimizing shares of preferences only?

In the end, we would like to obtain the willingness to pay of the sample.
asked May 15, 2019 by anonymous

1 Answer

0 votes
What happens depends on the search algorithm.  If you are searching using the Exhaustive algorithm, then all solution combinations are examined and their objectives reported, sorted by the first objective (be it share, revenue, etc.)

If you are using the Genetic algorithm, then the algorithm does not try to prioritize one objective over another, but it seeks to find solutions that are not dominated by another solution.  That is to say, if solution A is better in both share and revenue than solution B, then B is dominated by A.  When finished, the software reports those solutions that are not dominated, and it is up to the researcher to decide which is best for their situation.
answered May 15, 2019 by Walter Williams Gold Sawtooth Software, Inc. (19,280 points)
edited May 15, 2019 by Walter Williams
That should read, “B is dominated by A”.
Thanks. I fixed it.
How does Swatooth compute the revenue?