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Modeling discrete choices with augmented perception hurdles

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  • Wuyang Hu

Abstract

Through creating latent perception hurdles associated with each attribute considered in a stated conjoint experiment, this article describes a model that augments the conventional approach by utilizing the importance ratings provided by respondents prior to the discrete choice stage. The resulting perception hurdle logit (PHL) model has both advantages and disadvantages compared to the conditional logit (CL) and mixed logit models. Although the proposed model may not have the best within‐sample fit, it outperforms the other two models in predicting choices in a hold out sample. In addition, the proposed model is also used to reveal that depending on their own characteristics and the process of the survey, respondents may employ an array of different decision strategies.

Suggested Citation

  • Wuyang Hu, 2008. "Modeling discrete choices with augmented perception hurdles," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 257-267, September.
    • Handle: RePEc:bla:agecon:v:39:y:2008:i:2:p:257-267
    DOI: 10.1111/j.1574-0862.2008.00331.x
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    2. Moser, Riccarda & Raffaelli, Roberta, 2011. "Exploiting cut-off information to incorporate context effect: a discrete choice experiment on small fruits in a Alpine region," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114646, European Association of Agricultural Economists.
    3. Moser, Riccarda & Raffaelli, Roberta & Notaro, Sandra, 2010. "The Role Of Production Methods In Fruit Purchasing Behaviour: Hypothetical Vs Actual Consumers’ Preferences And Stated Minimum Requirements," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116426, European Association of Agricultural Economists.

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