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A discrete choice model with endogenous attribute attendance

Author

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  • Arne Risa Hole

    (Department of Economics, The University of Sheffield)

Abstract

This paper develops a discrete choice model in which the decision to consider an attribute in the choice process is modelled endogenously. In an application to patients' choice of general practitioner it is found that the proposed model outperforms the standard logit model in terms of goodness of fit and produces substantially different estimates of willingness to pay.

Suggested Citation

  • Arne Risa Hole, 2010. "A discrete choice model with endogenous attribute attendance," Working Papers 2010006, The University of Sheffield, Department of Economics, revised Feb 2010.
    • Handle: RePEc:shf:wpaper:2010006
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    File URL: http://www.shef.ac.uk/economics/research/serps/articles/2010_006.html
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    References listed on IDEAS

    as
    1. Hess, Stephane & Hensher, David A., 2010. "Using conditioning on observed choices to retrieve individual-specific attribute processing strategies," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 781-790, July.
    2. David Hensher & William Greene, 2010. "Non-attendance and dual processing of common-metric attributes in choice analysis: a latent class specification," Empirical Economics, Springer, vol. 39(2), pages 413-426, October.
    3. Swait, Joffre & Ben-Akiva, Moshe, 1987. "Incorporating random constraints in discrete models of choice set generation," Transportation Research Part B: Methodological, Elsevier, vol. 21(2), pages 91-102, April.
    4. Mandy Ryan & Verity Watson & Vikki Entwistle, 2009. "Rationalising the ‘irrational’: a think aloud study of discrete choice experiment responses," Health Economics, John Wiley & Sons, Ltd., vol. 18(3), pages 321-336, March.
    5. David A. Hensher, 2006. "How do respondents process stated choice experiments? Attribute consideration under varying information load," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(6), pages 861-878.
    6. Riccardo Scarpa & Timothy J. Gilbride & Danny Campbell & David A. Hensher, 2009. "Modelling attribute non-attendance in choice experiments for rural landscape valuation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(2), pages 151-174, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    discrete choice; attribute attendance;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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