The Information Content of a Stated Choice Experiment
AbstractThis paper presents a method to assess the distribution of values of time, and values of statistical life, over participants to a stated choice experiment, that does not require the researcher to make an a priori assumption on the type of distribution, as is required for example for mixed logit models. The method requires a few assumptions to hold true, namely that the valuations to be determined are constant for each individual, and that respondents make choices according to their preferences. These assumptions allow the derivation of lower and upper bounds on the (cumulative) distribution of the values of interest over respondents, by deriving for each choice set the value(s) for which the respondent would be indifferent between the alternatives offered, and next deriving from the choice actually made the respondent’s implied minimum or maximum value(s). We also provide an extension of the method that incorporates the possibility that errors are made. The method is illustrated using data from an experiment investigating the value of time and the value of statistical life. We discuss the possibility to improve the information content of stated choice experiments by optimizing the attribute levels shown to respondents, which is especially relevant because it would help in selecting the appropriate distribution for mixed logit estimates for the same data.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 08-053/3.
Date of creation: 22 May 2008
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stated preferences; value of a statistical life;
Find related papers by JEL classification:
- C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Systems - - - Transportation: Demand, Supply, and Congestion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-06-21 (All new papers)
- NEP-DCM-2008-06-21 (Discrete Choice Models)
- NEP-ECM-2008-06-21 (Econometrics)
- NEP-EXP-2008-06-21 (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.:
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"Measuring the Value of a Statistical Life: Problems and Prospects,"
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- Orley Ashenfelter, 2006. "Measuring the Value of a Statistical Life: Problems and Prospects," NBER Working Papers 11916, National Bureau of Economic Research, Inc.
- Loomes, Graham & Moffatt, Peter G & Sugden, Robert, 2002.
" A Microeconometric Test of Alternative Stochastic Theories of Risky Choice,"
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