On the Use of Probit-Based Models for Ranking Data Analysis

In consumer surveys, more information per response regarding preferences of alternatives may be obtained if individuals are asked to rank alternatives instead of being asked to select only the most-preferred alternative. However, the latter method continues to be the common method of preference elicitation. This is because of the belief that ranking of alternatives is cognitively burdensome. In addition, the limited research on modeling ranking data has been based on the rank ordered logit (ROL) model. In this paper, we show that a rank ordered probit (ROP) model can better utilize ranking data information, and that the prevalent view of ranking data as not being reliable (because of the attenuation of model coefficients with rank depth) may be traced to the use of a misspecified ROL model rather than to any cognitive burden considerations.