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Effects of Endogenous Task Complexity and the Endowed Bundle on Stated Choice

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Author Info
Hu, Wuyang
Abstract

Conventionally, studies examining the impacts of choice complexity only consider complexity introduced exogenously from the tasks respondents face. In the context of a stated conjoint survey, this article establishes endogenous complexity measures through decision-makers’' experience known as the endowed bundle before the survey. Results show that complexity should not only be defined exogenously. Endogenous complexity measures are important in determining the utility associated with an alternative and the decision of whether to participate in the market. In addition, some of these complexity effects are nonlinear. We also show that exogenous complexity simultaneous affects the choice consistency.

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File URL: http://purl.umn.edu/21437
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21437.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21437

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Related research
Keywords: Complexity; Endowed Bundle; Random Utility; Stated Choice; Research Methods/ Statistical Methods; C81; D12;

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  2. repec:cup:cbooks:9780521017152 is not listed on IDEAS
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  8. Wuyang Hu & Wiktor L. Adamowicz & Michele M. Veeman, 2006. "Labeling Context and Reference Point Effects in Models of Food Attribute Demand," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 88(4), pages 1034-1049, November. [Downloadable!] (restricted)
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