Inconsistent and Lexicographic Choices in Stated Preference Analysis
AbstractIn stated choice (SC) data inconsistent and lexicographic choice behavior is often observed. It is sometimes recommended to remove data with these characteristics from the analysis. In this paper we reconsider this recommendation. In our data many respondents have inconsistent choice patterns, which appear to be due to incidental mistakes. Moreover, a large number of the consistent respondents have lexicographic choice patterns. We show that the logit model, which is the most popular tool for analyzing SP data, is compatible with inconsistent and seemingly lexicographic choice behavior and that it offers precise predictions about the occurrence of such choices. In the data at our disposal the actual number of respondents who made different choices in two identical choice situations is substantially lower than that predicted by the model, whereas the number of respondents with lexicographic answers is much larger than predicted. The logit model is then ada! pted in various ways to bring it in better agreement with the facts. In particular, we introduce an effect of remembering the earlier choice when the same situation recurs, the presence of latent classes of lexicographic respondents and the presence of heterogeneity among respondents.
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.
Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 04-038/3.
Date of creation: 05 Apr 2004
Date of revision:
Contact details of provider:
Web page: http://www.tinbergen.nl
stated preference analysis; choice experiments; inconsistent choices; lexicographic choices; value of time; value of a statistical life;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-04-25 (All new papers)
- NEP-DCM-2004-04-25 (Discrete Choice Models)
- NEP-EXP-2004-04-25 (Experimental Economics)
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.:
- DeShazo, J. R. & Fermo, German, 2002. "Designing Choice Sets for Stated Preference Methods: The Effects of Complexity on Choice Consistency," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 123-143, July.
- Foster, Vivien & Mourato, Susana, 2002. "Testing for Consistency in Contingent Ranking Experiments," Journal of Environmental Economics and Management, Elsevier, vol. 44(2), pages 309-328, September.
- Hausman, J. A. & Abrevaya, Jason & Scott-Morton, F. M., 1998. "Misclassification of the dependent variable in a discrete-response setting," Journal of Econometrics, Elsevier, vol. 87(2), pages 239-269, September.
- Kjartan Sælensminde, 2002. "The Impact of Choice Inconsistencies in Stated Choice Studies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(4), pages 403-420, December.
- Train,Kenneth E., 2009.
"Discrete Choice Methods with Simulation,"
Cambridge University Press, number 9780521766555.
- Varian, Hal R, 1982. "The Nonparametric Approach to Demand Analysis," Econometrica, Econometric Society, vol. 50(4), pages 945-73, July.
- Richard Blundell & Alan Duncan, 1998. "Kernel Regression in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 62-87.
- Dan Ariely & George Loewenstein & Drazen Prelec, 2003. ""Coherent Arbitrariness": Stable Demand Curves Without Stable Preferences," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 73-105, February.
- de Palma, Andre & Myers, Gordon M & Papageorgiou, Yorgos Y, 1994. "Rational Choice under an Imperfect Ability to Choose," American Economic Review, American Economic Association, vol. 84(3), pages 419-40, June.
- Rosenberger, Randall S. & Peterson, George L. & Clarke, Andrea & Brown, Thomas C., 2003. "Measuring dispositions for lexicographic preferences of environmental goods: integrating economics, psychology and ethics," Ecological Economics, Elsevier, vol. 44(1), pages 63-76, February.
- Potoglou, Dimitris & Robinson, Neil & Kim, Chong W. & Burge, Peter & Warnes, Richard, 2010. "Quantifying individuals' trade-offs between privacy, liberty and security: The case of rail travel in UK," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(3), pages 169-181, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antoine Maartens (+31 626 - 160 892)).
If references are entirely missing, you can add them using this form.