Thresholds and indifference in stated choice surveys
AbstractOne typical aim of choice experiment designs is utility balance, that is, the alternatives defined within each choice set should have similar choice probabilities; otherwise, choice is too easy and little information about preferences may be obtained. Therefore, in a good design respondents may often find themselves close to indifference and thus perception thresholds may be an issue. We propose a discrete choice model to examine the behaviour of individuals with indifference thresholds, i.e. that would make them perceive two or more alternatives as almost identical in stated choice (SC) experiments. Such thresholds may be stochastic, differ among the population and even be a function of socio-economic characteristics and choice conditions. Two estimate this model we need SC data including an "indifference option", so that respondents are not forced to choose when finding that the two alternatives are equally attractive. Our formulation allows estimating the parameters of a threshold probability distribution using information about choices. As an illustration, the model is applied both to synthetic and real data; results clearly show that when indifference thresholds exist, using models without them can lead to errors in estimation and prediction.
Download InfoIf 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.
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 InfoArticle provided by Elsevier in its journal Transportation Research Part B: Methodological.
Volume (Year): 44 (2010)
Issue (Month): 6 (July)
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description
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.:
- Cantillo, Víctor & Heydecker, Benjamin & de Dios Ortúzar, Juan, 2006. "A discrete choice model incorporating thresholds for perception in attribute values," Transportation Research Part B: Methodological, Elsevier, vol. 40(9), pages 807-825, November.
- Train,Kenneth E., 2009.
"Discrete Choice Methods with Simulation,"
Cambridge University Press, number 9780521747387.
- Dennis H. Gensch, 1987. "A Two-Stage Disaggregate Attribute Choice Model," Marketing Science, INFORMS, vol. 6(3), pages 223-239.
- Hess, Stephane & Rose, John M. & Hensher, David A., 2008. "Asymmetric preference formation in willingness to pay estimates in discrete choice models," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(5), pages 847-863, September.
- Basar, Gözen & Bhat, Chandra, 2004. "A parameterized consideration set model for airport choice: an application to the San Francisco Bay Area," Transportation Research Part B: Methodological, Elsevier, vol. 38(10), pages 889-904, December.
- Jeff Brazell & Christopher Diener & Ekaterina Karniouchina & William Moore & Válerie Séverin & Pierre-Francois Uldry, 2006. "The no-choice option and dual response choice designs," Marketing Letters, Springer, vol. 17(4), pages 255-268, December.
- Swait, Joffre & Ben-Akiva, Moshe, 1987. "Incorporating random constraints in discrete models of choice set generation," Transportation Research Part B: Methodological, Elsevier, vol. 21(2), pages 91-102, April.
- David Hensher & John Rose & William Greene, 2005. "The implications on willingness to pay of respondents ignoring specific attributes," Transportation, Springer, vol. 32(3), pages 203-222, 05.
- Bliemer, Michiel C.J. & Rose, John M. & Hensher, David A., 2009. "Efficient stated choice experiments for estimating nested logit models," Transportation Research Part B: Methodological, Elsevier, vol. 43(1), pages 19-35, January.
- Caussade, Sebastián & Ortúzar, Juan de Dios & Rizzi, Luis I. & Hensher, David A., 2005. "Assessing the influence of design dimensions on stated choice experiment estimates," Transportation Research Part B: Methodological, Elsevier, vol. 39(7), pages 621-640, August.
- Swait, Joffre, 2001. "A non-compensatory choice model incorporating attribute cutoffs," Transportation Research Part B: Methodological, Elsevier, vol. 35(10), pages 903-928, November.
- Cantillo, Víctor & Ortúzar, Juan de Dios, 2005. "A semi-compensatory discrete choice model with explicit attribute thresholds of perception," Transportation Research Part B: Methodological, Elsevier, vol. 39(7), pages 641-657, August.
- S. K. Lioukas, 1984. "Thresholds and Transitivity in Stochastic Consumer Choice: A Multinomial Logit Analysis," Management Science, INFORMS, vol. 30(1), pages 110-122, January.
- Araña, Jorge E. & León, Carmelo J. & Hanemann, Michael W., 2008. "Emotions and decision rules in discrete choice experiments for valuing health care programmes for the elderly," Journal of Health Economics, Elsevier, vol. 27(3), pages 753-769, May.
- K. S. Krishnan, 1977. "Incorporating Thresholds of Indifference in Probabilistic Choice Models," Management Science, INFORMS, vol. 23(11), pages 1224-1233, July.
- Munizaga, Marcela A. & Heydecker, Benjamin G. & Ortúzar, Juan de Dios, 2000. "Representation of heteroskedasticity in discrete choice models," Transportation Research Part B: Methodological, Elsevier, vol. 34(3), pages 219-240, April.
- Kitamura, Ryuichi, 1990. "Panel Analysis in Transportation Planning: An Overview," University of California Transportation Center, Working Papers qt86v0f7zh, University of California Transportation Center.
- Dhar, Ravi, 1997. " Consumer Preference for a No-Choice Option," Journal of Consumer Research, University of Chicago Press, vol. 24(2), pages 215-31, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
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.