Complexity in Choice Experiments: Choice of the Status Quo Alternative and Implications for Welfare Measurement

17 Pages Posted: 8 Oct 2009

See all articles by Peter Boxall

Peter Boxall

University of Alberta - Faculty of Agriculture, Forestry & Home Economics

Wiktor L. (Vic) Adamowicz

University of Alberta

Amanda Moon

University of Alberta - Department of Rural Economy

Abstract

We examine the propensity of respondents to choose the status quo (SQ) or current situation alternative as a function of complexity in two separate state-of-the-world choice experiments. Complexity in each choice set was characterized as the number of single and multiple changes in levels of attributes from the current situation and the order of the choice task in the sequence of multiple tasks provided to respondents. We show that increasing complexity leads to increased choice of the SQ and that a respondent’s age and level of education also influenced this choice. We outline the effects of the alternate approaches for incorporating the SQ into welfare measurement. These findings have implications for the design of stated preference experiments, examining passive use values and for empirical analysis leading to welfare measurement.

Suggested Citation

Boxall, Peter and Adamowicz, Wiktor L. (Vic) and Moon, Amanda, Complexity in Choice Experiments: Choice of the Status Quo Alternative and Implications for Welfare Measurement. Australian Journal of Agricultural and Resource Economics, Vol. 53, Issue 4, pp. 503-519, October 2009, Available at SSRN: https://ssrn.com/abstract=1484001 or http://dx.doi.org/10.1111/j.1467-8489.2009.00469.x

Peter Boxall

University of Alberta - Faculty of Agriculture, Forestry & Home Economics ( email )

Edmonton, Alberta
Canada

Wiktor L. (Vic) Adamowicz

University of Alberta ( email )

Room 501 GSB
Edmonton, Alberta
Canada
780-492-4603 (Phone)
780-492-0268 (Fax)

Amanda Moon

University of Alberta - Department of Rural Economy

Edmonton, Alberta
Canada

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
316
PlumX Metrics