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It’s not that I don’t care, I just don’t care very much: confounding between attribute non-attendance and taste heterogeneity

Author

Listed:
  • Stephane Hess
  • Amanda Stathopoulos
  • Danny Campbell
  • Vikki O’Neill
  • Sebastian Caussade

Abstract

With the growing interest in the topic of attribute non-attendance, there is now widespread use of latent class (LC) structures aimed at capturing such behaviour, across a number of different fields. Specifically, these studies rely on a confirmatory LC model, using two separate values for each coefficient, one of which is fixed to zero while the other is estimated, and then use the obtained class probabilities as an indication of the degree of attribute non-attendance. In the present paper, we argue that this approach is in fact misguided, and that the results are likely to be affected by confounding with regular taste heterogeneity. We contrast the confirmatory model with an exploratory LC structure in which the values in both classes are estimated. We also put forward a combined latent class mixed logit model (LC-MMNL) which allows jointly for attribute non-attendance and for continuous taste heterogeneity. Across three separate case studies, the exploratory LC model clearly rejects the confirmatory LC approach and suggests that rates of non-attendance may be much lower than what is suggested by the standard model, or even zero. The combined LC-MMNL model similarly produces significant improvements in model fit, along with substantial reductions in the implied rate of attribute non-attendance, in some cases even eliminating the phenomena across the sample population. Our results thus call for a reappraisal of the large body of recent work that has implied high rates of attribute non-attendance for some attributes. Finally, we also highlight a number of general issues with attribute non-attendance, in particular relating to the computation of willingness to pay measures. Copyright Springer Science+Business Media, LLC. 2013

Suggested Citation

  • Stephane Hess & Amanda Stathopoulos & Danny Campbell & Vikki O’Neill & Sebastian Caussade, 2013. "It’s not that I don’t care, I just don’t care very much: confounding between attribute non-attendance and taste heterogeneity," Transportation, Springer, vol. 40(3), pages 583-607, May.
    • Handle: RePEc:kap:transp:v:40:y:2013:i:3:p:583-607
    DOI: 10.1007/s11116-012-9438-1
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    References listed on IDEAS

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    1. Mohammed Alemu & Morten Mørkbak & Søren Olsen & Carsten Jensen, 2013. "Attending to the Reasons for Attribute Non-attendance in Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(3), pages 333-359, March.
    2. Hole, Arne Risa, 2011. "A discrete choice model with endogenous attribute attendance," Economics Letters, Elsevier, vol. 110(3), pages 203-205, March.
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    4. Campbell, Danny & Hensher, David A. & Scarpa, Riccardo, 2012. "Cost thresholds, cut-offs and sensitivities in stated choice analysis: Identification and implications," Resource and Energy Economics, Elsevier, vol. 34(3), pages 396-411.
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    10. Riccardo Scarpa & Timothy J. Gilbride & Danny Campbell & David A. Hensher, 2009. "Modelling attribute non-attendance in choice experiments for rural landscape valuation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(2), pages 151-174, June.
    11. Fredrik Carlsson & Mitesh Kataria & Elina Lampi, 2010. "Dealing with Ignored Attributes in Choice Experiments on Valuation of Sweden’s Environmental Quality Objectives," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(1), pages 65-89, September.
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    13. Hess, Stephane & Hensher, David A., 2010. "Using conditioning on observed choices to retrieve individual-specific attribute processing strategies," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 781-790, July.
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    15. Campbell, Danny & Lorimer, Victoria & Aravena, Claudia & Hutchinson, W. George, 2010. "Attribute processing in environmental choice analysis: implications for willingness to pay," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 91718, Agricultural Economics Society.
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