Exploring Scale Effects of Best/Worst Rank Ordered Choice Data to Estimate Benefits of Tourism in Alpine Grazing Commons

16 Pages Posted: 8 Apr 2020

See all articles by Riccardo Scarpa

Riccardo Scarpa

University of Waikato - Management School

Sandra Notaro

University of Trento - Department of Economics

Jordan Louviere

University of South Australia

Roberta Raffaelli

University of Trento

Date Written: April 2011

Abstract

In many environmental valuation applications standard sample sizes for choice modelling surveys are impractical to achieve. One can improve data quality using more in‐depth surveys administered to fewer respondents. We report on a study using high quality rank‐ordered data elicited with the best‐worst approach. The resulting “exploded logit” choice model, estimated on 64 responses per person, was used to study the willingness to pay for external benefits by visitors for policies which maintain the cultural heritage of alpine grazing commons. We find evidence supporting this approach and reasonable estimates of mean WTP, which appear theoretically valid and policy informative.

Keywords: best-worst alternative selection, choice modeling, heteroskedastic logit, non-market valuation, rank ordered choice models

Suggested Citation

Scarpa, Riccardo and Notaro, Sandra and Louviere, Jordan and Raffaelli, Roberta, Exploring Scale Effects of Best/Worst Rank Ordered Choice Data to Estimate Benefits of Tourism in Alpine Grazing Commons (April 2011). American Journal of Agricultural Economics, Vol. 93, Issue 3, pp. 813-828, 2011, Available at SSRN: https://ssrn.com/abstract=3570790 or http://dx.doi.org/10.1093/ajae/aaq174

Riccardo Scarpa (Contact Author)

University of Waikato - Management School

Hamilton
New Zealand

Sandra Notaro

University of Trento - Department of Economics ( email )

via Verdi, 53
Trento, 38122
Italy

Jordan Louviere

University of South Australia

37-44 North Terrace, City West Campus
Adelaide, 5001
Australia

Roberta Raffaelli

University of Trento ( email )

via Verdi, 53
Trento, 38122
Italy

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