Dear forum members,
does anyone have experience with calculating WTP by using linear interpolation between the price levels? I followed the approach of a paper using this approach.
I am calculating the utility of the product with the attribute levels of my choice by summing up the part-worth utilities (without price) and subtract it from the utility of the non-choice option. Then I take this value as y-value and search for the related x-value of my function (consisting of 5 price levels as x-values und the 5 part-worth utilities of the price levels as y-values) with linear interpolation (on a respondent level).
For many respondents I get reasonable results. But for some respondents the y-value, I search for (the utility of a certain price), is not among the given utility values of the 5 price levels. Hence, I cannot interpolate. Does that mean, that the WTP is zero? Or simply not determinable?
Thank you in advance for your help.
Best,
Mary