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Choice Experiments: identifying preferences or production functions?

Author

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  • Fiona Gibson

    (Faculty of Natural & Agricultural Sciences, University of Western Australia)

  • Michael Burton

    (Faculty of Natural & Agricultural Sciences, University of Western Australia)

Abstract

This paper presents an alternative perspective on the process by which respondents consider options within choice experiments. Building on the “new” model of consumer demand by Stigler and Becker (1977), it suggests that the attributes within choice experiments are not valued directly, but are used to generate higher level “constructs” (i.e. improvement in the environment) which are then valued. The implication is that what are currently viewed as marginal utilities of attributes are in fact marginal utilities of an environmental outcome mixed with (subjective) marginal productivity of the attribute to achieving the environmental outcome. It is suggested the Hierarchical Information Integration methods may allow one to separately identify the utility and production functions, and identify individual heterogeneity therein

Suggested Citation

  • Fiona Gibson & Michael Burton, 2009. "Choice Experiments: identifying preferences or production functions?," Environmental Economics Research Hub Research Reports 0940, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:eenhrr:0940
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    File URL: https://crawford.anu.edu.au/research_units/eerh/pdf/EERH_RR40.pdf
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    References listed on IDEAS

    as
    1. Araña, Jorge E. & León, Carmelo J. & Quevedo, Jose L., 2006. "The effect of medical experience on the economic evaluation of health policies. A discrete choice experiment," Social Science & Medicine, Elsevier, vol. 63(2), pages 512-524, July.
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    Cited by:

    1. Jonelle Cleland & Abbie McCartney, 2010. "Putting the Spotlight on Attribute Definition: Divergence Between Experts and the Public," Environmental Economics Research Hub Research Reports 1077, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
    2. Cleland, Jonelle & Rogers, Abbie A., 2010. "Putting the Spotlight on Attribute Definition: a knowledge base approach," Research Reports 107578, Australian National University, Environmental Economics Research Hub.

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