Webinar: Pros & Cons of Market Simulations Using RFC vs. HB Draws

Randomized First Choice (RFC) is the default market simulation method in Sawtooth Software’s market simulators. It penalizes products that share multiple attribute levels in common, reducing IIA (red bus/blue bus) problems. RFC is faster and yet at the same time a simplification compared to the full treatment of simulating on HB draws, which is truer to the HB model and more academically defensible.