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How much is too much? - An investigation of the effect of the number of choice sets, starting point and the choice of bid vectors in choice experiments

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Author Info
Carlsson, Fredrik () (Department of Economics, School of Business, Economics and Law, Göteborg University)
Martinsson, Peter () (Department of Economics, School of Business, Economics and Law, Göteborg University)

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Abstract

In a split sample design, we examine how the number of choice sets, design of the first choice set (starting point), and the choice of attribute levels in the cost attribute affect the precision in the elicited preferences in otherwise completely identical choice experiment surveys. These issues are investigated for Swedish households’ marginal willingness to pay to reduce power outages. Our results indicate that neither the number´of choice sets nor the starting point choice set has a significant impact on estimated marginal willingness to pay, while the effect was significant for theadditive scaling of the cost vector. At the end of the paper we discuss the implications of our results on future developments and applications of choice experiments.

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File URL: http://hdl.handle.net/2077/2731
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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number 191.

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Length: 21 pages
Date of creation: 19 Jan 2006
Date of revision:
Publication status: Published in Environmental and Resource Economics, 2008, pages 165-176.
Handle: RePEc:hhs:gunwpe:0191

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Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: Attribute levels; choice experiment; complexity; length; power outages; starting point;

Find related papers by JEL classification:
C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models
C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply

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References listed on IDEAS
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.:
  1. Alberini Anna, 1995. "Efficiency vs Bias of Willingness-to-Pay Estimates: Bivariate and Interval-Data Models," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 169-180, September. [Downloadable!] (restricted)
  2. Kahneman, Daniel & Ritov, Ilana & Schkade, David A, 1999. "Economic Preferences or Attitude Expressions?: An Analysis of Dollar Responses to Public Issues," Journal of Risk and Uncertainty, Springer, vol. 19(1-3), pages 203-35, December. [Downloadable!] (restricted)
  3. Trudy Ann Cameron & John Quiggin, 1992. "Estimation Using Contingent Valuation Data From a "Dichotomous Choice with Follow-Up" Questionnaire," UCLA Economics Working Papers 653, UCLA Department of Economics. [Downloadable!]
    Other versions:
  4. Herriges, Joseph A. & Shogren, Jason F., 1996. "Starting Point Bias in Dichotomous Choice Valuation with Follow-Up Questioning," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 112-131, January. [Downloadable!] (restricted)
    Other versions:
  5. Swait, Joffre & Adamowicz, Wiktor, 2001. " The Influence of Task Complexity on Consumer Choice: A Latent Class Model of Decision Strategy Switching," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 28(1), pages 135-48, June.
  6. Fredrik Carlsson & Peter Martinsson, 2003. "Design techniques for stated preference methods in health economics," Health Economics, John Wiley & Sons, Ltd., vol. 12(4), pages 281-294. [Downloadable!]
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