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Protest Attitudes and Stated Preferences: Evidence on Scale Usage Heterogeneity

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  • Maria A. Cunha-e-Sá
  • Luis C. Nunes
  • Vladimir Otrachshenko

Abstract

We contribute to the stated preference literature by addressing scale usage heterogeneity regarding how individuals answer attitudinal questions capturing lack of trust in institutions and fairness issues. Using a latent class model, we conduct a contingent valuation study to elicit the willingness-to-pay to preserve a recreational site. We find evidence that respondents within the same class, that is, with similar preferences and attitudes, interpret the Likert scale differently when answering the attitudinal questions. We identify different patterns of scale usage heterogeneity within and across classes and associate them with individual characteristics. Our approach contributes to better a understanding of individual behavior in the presence of protest attitudes. JEL codes: C35, Q51

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File URL: http://fesrvsd.fe.unl.pt/WPFEUNL/WP2012/Wp569.pdf
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Bibliographic Info

Paper provided by Universidade Nova de Lisboa, Faculdade de Economia in its series FEUNL Working Paper Series with number wp569.

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Length: 26 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:unl:unlfep:wp569

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Keywords: Scale usage heterogeneity; Likert scale; protest attitudes; contingent valuation; latent class model;

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References

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  1. Blamey, Russell K., 1998. "Decisiveness, attitude expression and symbolic responses in contingent valuation surveys," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 34(4), pages 577-601, March.
  2. Botzen, W.J.W. & van den Bergh, J.C.J.M., 2012. "Risk attitudes to low-probability climate change risks: WTP for flood insurance," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 82(1), pages 151-166.
  3. Carson, Richard T & Groves, Theodore, 2010. "Incentive and Information Properties of Preference Questions," University of California at San Diego, Economics Working Paper Series, Department of Economics, UC San Diego qt88d8644g, Department of Economics, UC San Diego.
  4. Rossi P. E & Gilula Z. & Allenby G. M, 2001. "Overcoming Scale Usage Heterogeneity: A Bayesian Hierarchical Approach," Journal of the American Statistical Association, American Statistical Association, American Statistical Association, vol. 96, pages 20-31, March.
  5. Polome, Philippe, 2003. "Experimental evidence on deliberate misrepresentation in referendum contingent valuation," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 52(3), pages 387-401, November.
  6. Doreen Wing Han Au & Thomas F. Crossley & Martin Schellhorn, 2005. "The Effect of Health Changes and Long-term Health on the Work Activity of Older Canadians," Quantitative Studies in Economics and Population Research Reports, McMaster University 397, McMaster University.
  7. Brown, Kelly M. & Taylor, Laura O., 2000. "Do as you say, say as you do: evidence on gender differences in actual and stated contributions to public goods," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 43(1), pages 127-139, September.
  8. Kristin Jakobsson & Andrew Dragun, 2001. "The Worth of a Possum: Valuing Species with the Contingent Valuation Method," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 19(3), pages 211-227, July.
  9. Richard Carson & Robert Mitchell & Michael Hanemann & Raymond Kopp & Stanley Presser & Paul Ruud, 2003. "Contingent Valuation and Lost Passive Use: Damages from the Exxon Valdez Oil Spill," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 25(3), pages 257-286, July.
  10. Bill Provencher & Kenneth A. Baerenklau & Richard C. Bishop, 2002. "A Finite Mixture Logit Model of Recreational Angling with Serially Correlated Random Utility," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 84(4), pages 1066-1075.
  11. Martijn G. De Jong & Jan-Benedict E. M. Steenkamp & Jean-Paul Fox, 2007. "Relaxing Measurement Invariance in Cross-National Consumer Research Using a Hierarchical IRT Model," Journal of Consumer Research, University of Chicago Press, University of Chicago Press, vol. 34(2), pages 260-278, 06.
  12. Maria Cunha-e-Sá & Lívia Madureira & Luis Nunes & Vladimir Otrachshenko, 2012. "Protesting and Justifying: A Latent Class Model for Contingent Valuation with Attitudinal Data," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 52(4), pages 531-548, August.
  13. John Bound, 1991. "Self-Reported Versus Objective Measures of Health in Retirement Models," Journal of Human Resources, University of Wisconsin Press, vol. 26(1), pages 106-138.
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