Advanced Search
MyIDEAS: Login to save this article or follow this journal

Understanding the use of non-compensatory decision rules in discrete choice experiments: The role of emotions

Contents:

Author Info

  • Araña, Jorge E.
  • León, Carmelo J.

Abstract

When making choices, individuals can follow alternative strategies or decision rules to the traditional compensatory utility maximization, raising doubts about to what extent these choices can be used to elicit preferences. In this paper we use a verbal protocol approach to investigate the use of alternative decision rules in discrete choice experiments. The main interest is to identify some of the determinants of the context that play a role in the choice of a specific strategy or decision rule. Our results show that emotions can partially explain this choice among compensatory and simpler non-compensatory decision rules. We also find that the number of years of education - and not personal income - are positively correlated with the probability of choosing a non-compensatory decision rules. Finally, by manipulating alternative specific emotions (sadness, disgust) we find that emotions of the same valence can have opposing causal effects on the decision rule choice.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6VDY-4W09CHP-1/2/e9fc048547026a4a0e54cbe5a4abc85c
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 68 (2009)
Issue (Month): 8-9 (June)
Pages: 2316-2326

as in new window
Handle: RePEc:eee:ecolec:v:68:y:2009:i:8-9:p:2316-2326

Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolecon

Related research

Keywords: Decision rules Emotions Stated preference methods Non-market valuation;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Geweke, John & Keane, Michael P & Runkle, David, 1994. "Alternative Computational Approaches to Inference in the Multinomial Probit Model," The Review of Economics and Statistics, MIT Press, vol. 76(4), pages 609-32, November.
  2. Arana, Jorge E. & Leon, Carmelo J., 2005. "Flexible mixture distribution modeling of dichotomous choice contingent valuation with heterogenity," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 170-188, July.
  3. Brown, Thomas C. & Nannini, Dawn & Gorter, Robert B. & Bell, Paul A. & Peterson, George L., 2002. "Judged seriousness of environmental losses: reliability and cause of loss," Ecological Economics, Elsevier, vol. 42(3), pages 479-491, September.
  4. Todd, Peter & Benbasat, Izak, 1994. "The Influence of Decision Aids on Choice Strategies: An Experimental Analysis of the Role of Cognitive Effort," Organizational Behavior and Human Decision Processes, Elsevier, vol. 60(1), pages 36-74, October.
  5. DeShazo, J. R. & Fermo, German, 2002. "Designing Choice Sets for Stated Preference Methods: The Effects of Complexity on Choice Consistency," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 123-143, July.
  6. Messick, David M., 1999. "Alternative logics for decision making in social settings," Journal of Economic Behavior & Organization, Elsevier, vol. 39(1), pages 11-28, May.
  7. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, April.
  8. Kaufman, Bruce E., 1999. "Emotional arousal as a source of bounded rationality," Journal of Economic Behavior & Organization, Elsevier, vol. 38(2), pages 135-144, February.
  9. Bateman, Ian J. & Langford, Ian H. & Jones, Andrew P. & Kerr, Geoffrey N., 2001. "Bound and path effects in double and triple bounded dichotomous choice contingent valuation," Resource and Energy Economics, Elsevier, vol. 23(3), pages 191-213, July.
  10. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
  11. Daniel Houser & Michael Keane & Kevin McCabe, 2004. "Behavior in a Dynamic Decision Problem: An Analysis of Experimental Evidence Using a Bayesian Type Classification Algorithm," Econometrica, Econometric Society, vol. 72(3), pages 781-822, 05.
  12. Timothy J. Gilbride & Greg M. Allenby, 2004. "A Choice Model with Conjunctive, Disjunctive, and Compensatory Screening Rules," Marketing Science, INFORMS, vol. 23(3), pages 391-406, October.
  13. Elster, Jon, 1996. "Rationality and the Emotions," Economic Journal, Royal Economic Society, vol. 106(438), pages 1386-97, September.
  14. Schkade David A. & Payne John W., 1994. "How People Respond to Contingent Valuation Questions: A Verbal Protocol Analysis of Willingness to Pay for an Environmental Regulation," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 88-109, January.
  15. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
  16. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
  17. Kahn, Barbara E & Isen, Alice M, 1993. " The Influence of Positive Affect on Variety Seeking among Safe, Enjoyable Products," Journal of Consumer Research, University of Chicago Press, vol. 20(2), pages 257-70, September.
  18. Spash, Clive L., 2007. "Deliberative monetary valuation (DMV): Issues in combining economic and political processes to value environmental change," Ecological Economics, Elsevier, vol. 63(4), pages 690-699, September.
  19. Clark, Judy & Burgess, Jacquelin & Harrison, Carolyn M., 2000. ""I struggled with this money business": respondents' perspectives on contingent valuation," Ecological Economics, Elsevier, vol. 33(1), pages 45-62, April.
  20. Spash, Clive L., 2000. "Ecosystems, contingent valuation and ethics: the case of wetland re-creation," Ecological Economics, Elsevier, vol. 34(2), pages 195-215, August.
  21. Erwin Bulte & Shelby Gerking & John List & Aart de Zeeuw, 2004. "The effect of varying the causes of environmental problems on stated wtp values: Evidence from a field study," Framed Field Experiments 00134, The Field Experiments Website.
  22. Kahneman, Daniel & Ritov, Ilana, 1994. "Determinants of Stated Willingness to Pay for Public Goods: A Study in the Headline Method," Journal of Risk and Uncertainty, Springer, vol. 9(1), pages 5-38, July.
  23. Araña, Jorge E. & León, Carmelo J., 2008. "Do emotions matter? Coherent preferences under anchoring and emotional effects," Ecological Economics, Elsevier, vol. 66(4), pages 700-711, July.
  24. Samuel Bowles & Herbert Gintis, 2000. "Walrasian Economics In Retrospect," The Quarterly Journal of Economics, MIT Press, vol. 115(4), pages 1411-1439, November.
  25. Chilton, S. M. & Hutchinson, W. G., 2003. "A qualitative examination of how respondents in a contingent valuation study rationalise their WTP responses to an increase in the quantity of the environmental good," Journal of Economic Psychology, Elsevier, vol. 24(1), pages 65-75, February.
  26. Garrett Sonnier & Andrew Ainslie & Thomas Otter, 2007. "Heterogeneity distributions of willingness-to-pay in choice models," Quantitative Marketing and Economics, Springer, vol. 5(3), pages 313-331, September.
  27. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Hoyos, David, 2010. "The state of the art of environmental valuation with discrete choice experiments," Ecological Economics, Elsevier, vol. 69(8), pages 1595-1603, June.
  2. Mohammed Hussen Alemu & Morten Raun Mørkbak & Søren Bøye Olsen & Carsten Lynge Jensen, 2011. "Attending to the reasons for attribute non-attendance in Choice Experiments," IFRO Working Paper 2011/8, University of Copenhagen, Department of Food and Resource Economics.
  3. Achtnicht, Martin, 2011. "Do environmental benefits matter? Evidence from a choice experiment among house owners in Germany," Ecological Economics, Elsevier, vol. 70(11), pages 2191-2200, September.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:68:y:2009:i:8-9:p:2316-2326. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.