Labelling effects in discrete choice experiments
AbstractDiscrete choice experiment data aimed at eliciting the demand for recreational walking trails on farmland in Ireland is used to explore whether some respondents reach their choices solely on the basis of the alternative’s label. To investigate this type of processing strategy, this paper exploits a discrete mixtures approach that also encompasses continuous distributions to reflect the heterogeneity in preferences for the attributes. We find evidence that a proportion of respondents adopt this processing strategy and that the strategies employed by rural and urban respondents are somewhat different. Results further highlight that model fit and measures of welfare are sensitive to assumptions related to processing strategies among respondents.
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Bibliographic InfoPaper provided by Socio-Economic Marine Research Unit, National University of Ireland, Galway in its series Working Papers with number 148831.
Date of creation: 2012
Date of revision:
Discrete choice; discrete mixtures approach; Environmental Economics and Policy; Land Economics/Use;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-05-24 (Agricultural Economics)
- NEP-ALL-2013-05-24 (All new papers)
- NEP-DCM-2013-05-24 (Discrete Choice Models)
- NEP-ENV-2013-05-24 (Environmental Economics)
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