Exploring attribute aggregation in the Lancasterian theory of demand

Mesfin G Genie* (Corresponding Author), Mandy Ryan, Nicolas Krucien

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


Multi-attribute choices are commonly analysed in economics to value goods and services. Analysis assumes individuals consider all attributes, making trade-offs between them. Such decision-making is cognitively demanding, often triggering alternative decision rules. We develop a new model where individuals aggregate multi-attribute information into metaattributes. Applying our model to a choice experiment (CE) dataset, accounting for attribute aggregation (AA) improves model fit. The probability of adopting AA is greater for: homogenous attribute information; participants who had shorter response time and failed the dominance test; and for later located choices. Accounting for AA has implications for welfare estimates. Our results underline the importance of accounting for information processing rules when modelling multi-attribute choices.
Original languageEnglish
JournalHealth Economics
Publication statusAccepted/In press - 14 Feb 2021


  • Multi-attribute choices
  • Attributes aggregation
  • Information processing
  • Choice modelling
  • Choice experiment

Fingerprint Dive into the research topics of 'Exploring attribute aggregation in the Lancasterian theory of demand'. Together they form a unique fingerprint.

Cite this