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Incomplete Preferences in Choice Experiments: A note on avoidable noise and bias in welfare estimates

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  • Mitesh Kataria

    ()
    (Max Planck Institute of Economics, Strategic Interaction Group, Jena)

  • Jason F. Shogren

    (University of Wyoming, Department of Economics and Finance, Laramie)

Abstract

How does a choice experiment (CE) model derived under standard preference axioms perform for respondents with incomplete preferences? Using simulated data, we show how such miss-specification results in unnecessary noise and bias in welfare estimates, and can be avoided.

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File URL: http://www.wiwi.uni-jena.de/Papers/jerp2010/wp_2010_003.pdf
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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2010-003.

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Date of creation: 15 Jan 2010
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Handle: RePEc:jrp:jrpwrp:2010-003

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Keywords: Choice experiment; Ordered Logit; Bias; Preference Axioms;

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