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The Effects of Consequentiality in Binary- and Multinomial-Choice Surveys

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  • Interis, Matthew
  • Petrolia, Daniel

Abstract

We examine the effect of respondent of consequentiality on a split-sample binary-choice/multinomial-choice stated-preference survey. We fail to observe the knife-edge results predicted in the consequentiality literature in the binary-choice data but do observe them in the multinomial-choice data. In the multinomial-choice data, only respondents who believed the survey was at least somewhat likely to affect future policy behaved consistently with theoretical predictions. Overall, we conclude that failing to control for perceived consequentiality can lead to false conclusions regarding marginal effects and welfare estimates. This is true in both the binary- and multinomial-choice contexts.

Suggested Citation

  • Interis, Matthew & Petrolia, Daniel, 2014. "The Effects of Consequentiality in Binary- and Multinomial-Choice Surveys," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Number 2), pages 1-16.
  • Handle: RePEc:ags:jlaare:186578
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    References listed on IDEAS

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    3. Christian A. Vossler & Maurice Doyon & Daniel Rondeau, 2012. "Truth in Consequentiality: Theory and Field Evidence on Discrete Choice Experiments," American Economic Journal: Microeconomics, American Economic Association, vol. 4(4), pages 145-171, November.
    4. Herriges, Joseph & Kling, Catherine & Liu, Chih-Chen & Tobias, Justin, 2010. "What are the consequences of consequentiality?," Journal of Environmental Economics and Management, Elsevier, vol. 59(1), pages 67-81, January.
    5. Daniel R. Petrolia & Matthew G. Interis & Joonghyun Hwang, 2014. "America's Wetland? A National Survey of Willingness to Pay for Restoration of Louisiana's Coastal Wetlands," Marine Resource Economics, University of Chicago Press, vol. 29(1), pages 17-37.
    6. Bulte, Erwin & Gerking, Shelby & List, John A. & de Zeeuw, Aart, 2005. "The effect of varying the causes of environmental problems on stated WTP values: evidence from a field study," Journal of Environmental Economics and Management, Elsevier, vol. 49(2), pages 330-342, March.
    7. Riccardo Scarpa & Mara Thiene & David A. Hensher, 2010. "Monitoring Choice Task Attribute Attendance in Nonmarket Valuation of Multiple Park Management Services: Does It Matter?," Land Economics, University of Wisconsin Press, vol. 86(4), pages 817-839.
    8. Day, Brett & Bateman, Ian J. & Carson, Richard T. & Dupont, Diane & Louviere, Jordan J. & Morimoto, Sanae & Scarpa, Riccardo & Wang, Paul, 2012. "Ordering effects and choice set awareness in repeat-response stated preference studies," Journal of Environmental Economics and Management, Elsevier, vol. 63(1), pages 73-91.
    9. Newey, Whitney K., 1987. "Efficient estimation of limited dependent variable models with endogenous explanatory variables," Journal of Econometrics, Elsevier, vol. 36(3), pages 231-250, November.
    10. repec:feb:framed:0073 is not listed on IDEAS
    11. Vossler, Christian A. & Watson, Sharon B., 2013. "Understanding the consequences of consequentiality: Testing the validity of stated preferences in the field," Journal of Economic Behavior & Organization, Elsevier, vol. 86(C), pages 137-147.
    12. Vossler, Christian A. & Evans, Mary F., 2009. "Bridging the gap between the field and the lab: Environmental goods, policy maker input, and consequentiality," Journal of Environmental Economics and Management, Elsevier, vol. 58(3), pages 338-345, November.
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    Citations

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    Cited by:

    1. Jie He & Jérôme Dupras & Thomas G. Poder, 2018. "Payment and Provision Consequentiality in Voluntary Contribution Mechanism: Single or Double “Knife-Edge” Evidence?," Cahiers de recherche 18-02, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    2. Ewa Zawojska & Anna Bartczak & Mikołaj Czajkowski, 2018. "Disentangling the effects of policy and payment consequentiality and risk attitudes on stated preferences," Working Papers 2018-01, Faculty of Economic Sciences, University of Warsaw.
    3. Kemper, Nathan & Nayga, Rodolfo M. Jr. & Popp, Jennie & Bazzani, Claudia, 2016. "The Effects of Honesty Oath and Consequentiality in Choice Experiments," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235381, Agricultural and Applied Economics Association.
    4. Timothy C. Haab & Matthew G. Interis & Daniel R. Petrolia & John C. Whitehead, 2016. "Interesting Questions Worthy of Further Study: Our Reply to Desvousges, Mathews, and Train's (2015) Comment on Our Thoughts (2013) on Hausman's (2012) Update of Diamond and Hausman's (1994) Critique o," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(1), pages 183-189.
    5. McLeod, Elizabeth & Jensen, Kimberly & Griffith, Andrew & Lewis, Karen, 2017. "Tennessee Beef Producers' Willingness to Participate in a Tennessee Branded Beef Program," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252649, Southern Agricultural Economics Association.
    6. Peter A. Groothuis & Tanga M. Mohr & John C. Whitehead & Kristan Cockerill, 2015. "Payment and Policy Consequentiality in Contingent Valuation," Working Papers 15-04, Department of Economics, Appalachian State University.

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