Preferences, rational choices and economic valuation: Some empirical tests
AbstractThis study focuses on the respondent rationality hypothesis, usually assumed to be true in Discrete Choice Experiments. We examine lexicographic preferences, the influence of consistency, and the role of task complexity in the individual choice process. To this end, we carry out rationality tests in a survey on forest recreation. Results show that choice set orderings do not impact on choice probability. If a violation of continuity or consistency axioms does impact on choice probability, the Willingness-To-Pay estimators calculated using the total sample and the sub-samples of “irrational” respondents are not significantly different. This serves as a basis for discussing the traditional concept of rationality.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).
Volume (Year): 41 (2012)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/inca/620175
Individual preferences; Discrete choice experiment; Rationality tests; Forest recreation;
Find related papers by JEL classification:
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
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