Discrete Choice

A discrete choice experiment (DCE) is a type of stated preference method used to elicit values for goods and services. DCEs rely on the premise that any good or service can be described by its characteristics and the extent to which an individual values a good or service depends on the levels of these characteristics. DCEs have long been used by consumer products companies to design new products to meet customer preferences by measuring the relative importance of different product attributes, but they have only more recently been applied in the context of health and environmental goods. This approach typically provides more detailed, yet substantively different, information compared with traditional stated preference methods, such as contingent valuation or health state utility assessment.