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Assessing the influence of design dimensions on stated choice experiment estimates

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  • Caussade, Sebastián
  • Ortúzar, Juan de Dios
  • Rizzi, Luis I.
  • Hensher, David A.
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    Abstract

    This paper explores the complexity and cognitive burden associated to stated choice experiments. Complexity is analysed in terms of design dimensions such as the number of available alternatives, the number of attributes used to define these alternatives, the number of levels for those attributes, the range of attribute levels and the number of choice situations presented to each respondent. These design dimensions were systematically varied according to an experimental design in a first design hierarchy; the second hierarchy comprised the attributes of each alternative (travel times and travel cost components). To study the complexity of the experiment we specified a heteroskedastic logit model with the scale parameter specified as a function of the design dimensions. This allowed us to separate the effects of choice complexity from the marginal utility estimates. Our results show that all five design dimensions affect the choice variance, or put it another way, they affect choice consistency. However, we did not find systematic effects on willingness-to-pay estimates.

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    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

    Volume (Year): 39 (2005)
    Issue (Month): 7 (August)
    Pages: 621-640

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    Handle: RePEc:eee:transb:v:39:y:2005:i:7:p:621-640

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    References

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    1. Gaudry, Marc J. I. & Jara-Diaz, Sergio R. & Ortuzar, Juan de Dios, 1989. "Value of time sensitivity to model specification," Transportation Research Part B: Methodological, Elsevier, vol. 23(2), pages 151-158, April.
    2. Algers, Staffan & Bergström, Pål & Dahlberg, Matz & Lindqvist Dillén, Johanna, 1998. "Mixed Logit Estimation of the Value of Travel Time," Working Paper Series 1998:15, Uppsala University, Department of Economics.
    3. de Palma, Andre & Myers, Gordon M & Papageorgiou, Yorgos Y, 1994. "Rational Choice under an Imperfect Ability to Choose," American Economic Review, American Economic Association, vol. 84(3), pages 419-40, June.
    4. Arentze, Theo & Borgers, Aloys & Timmermans, Harry & DelMistro, Romano, 2003. "Transport stated choice responses: effects of task complexity, presentation format and literacy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(3), pages 229-244, May.
    5. Fredrik Carlsson, 2003. "The demand for intercity public transport: the case of business passengers," Applied Economics, Taylor & Francis Journals, vol. 35(1), pages 41-50.
    6. David A. Hensher, 2004. "Identifying the Influence of Stated Choice Design Dimensionality on Willingness to Pay for Travel Time Savings," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 38(3), pages 425-446, September.
    7. David A. Hensher, 2001. "Measurement of the Valuation of Travel Time Savings," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 35(1), pages 71-98, January.
    8. Fredrik Carlsson & Peter Martinsson, 2003. "Design techniques for stated preference methods in health economics," Health Economics, John Wiley & Sons, Ltd., vol. 12(4), pages 281-294.
    9. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
    10. David Hensher, 2006. "Revealing Differences in Willingness to Pay due to the Dimensionality of Stated Choice Designs: An Initial Assessment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 34(1), pages 7-44, 05.
    11. Heiner, Ronald A, 1983. "The Origin of Predictable Behavior," American Economic Review, American Economic Association, vol. 73(4), pages 560-95, September.
    12. 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.
    13. Swait, Joffre & Adamowicz, Wiktor L., 1999. "Choice Environment, Market Complexity and Consumer Behavior: A Theoretical and Empirical Approach for Incorporating Decision Complexity into Models of Consumer Choice," Staff Paper Series 24093, University of Alberta, Department of Resource Economics and Environmental Sociology.
    14. Patricio E. Pérez & Francisco J. Martínez & Juan de Dios Ort�zar, 2003. "Microeconomic Formulation and Estimation of a Residential Location Choice Model: Implications for the Value of Time," Journal of Regional Science, Wiley Blackwell, vol. 43(4), pages 771-789.
    15. Marisa J. Mazzotta & James J. Opaluch, 1995. "Decision Making When Choices Are Complex: A Test of Heiner's Hypothesis," Land Economics, University of Wisconsin Press, vol. 71(4), pages 500-515.
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