Development of an Analytical Method to Discriminate Respondent Attribute Processing Strategies: Application in a Choice Experiment
13 Pages Posted: 1 Jun 2015
Date Written: February 15, 2015
In the choice experiment framework, it is assumed that respondents consider all the trade-offs among attributes when making their choices. However, there is evidence that respondents may not consider all of them. In the choice-experiment survey to value public goods reported here, a methodology has been developed for analytically determining the value of the coefficient of variation of the conditional distributions to discriminate respondents attending/ignoring one attribute. Results show that (at the respondent level) the analytically determined critical values exhibit a better concordance with the stated preferences than if the rule of thumb with an arbitrary value of two (assumed in previous research) is used.
Keywords: Choice Experiments, discontinuous preferences, random-parameter logit model, piecewise regression, coefficient of variation
JEL Classification: Q59, C25, D19
Suggested Citation: Suggested Citation