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'No-choice' options within a nested logit model: one model is insufficient

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Author Info

  • Arianne de Blaeij
  • Paulo Nunes
  • Jeroen C. J. M. van den Bergh

Abstract

We examine the impact of providing a 'no-choice' option in attribute-based valuation experiments. The aim of the experiment was to assess monetary values of cockle fishery management practices in the Dutch Wadden Sea for different stakeholder groups, namely Dutch citizens, local residents and tourists. The current policy debate about the management of the Wadden Sea stresses the fact that individual preferences with respect to cockle-fishery differ. The aim of this article is to analyse the individual preferences in a objective way. Special attention is given to the influence of including a 'no-choice option', which is analysed using a nested logit model. We test whether the full set of options can be considered as close substitutes. The estimation results show that the influence of including the no-choice option differs among the stakeholders considered.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 39 (2007)
Issue (Month): 10 ()
Pages: 1245-1252

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Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1245-1252

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Cited by:
  1. Taro Ohdoko & Satoru Komatsu & Shinji Kaneko, 2012. "Residential preferences for stable electricity supply and a reduction in air pollution risk: A benefit transfer study using choice modeling in China," IDEC DP2 Series 2-12, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
  2. Mahmood, Talat & Schömann, Klaus, 2009. "The decision to migrate: A simultaneous decision making approach," Discussion Papers, Research Unit: Competition and Innovation SP II 2009-17, Social Science Research Center Berlin (WZB).

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