Abstract
A method of factor extraction specific to a binary matrix, illustrated here as a person-by-item response matrix, is presented. The extraction procedure, termed ERGO, differs from the more commonly implemented dimensionalizing techniques, factor analysis and multidimensional scaling, by taking into consideration item difficulty. The ERGO procedure uses the calculation of a dominance matrix which, for either persons or items, has the important attribute of allowing directionality to be inferred between relations.

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