Scale and taste heterogeneity for forest biodiversity: Models of serial nonparticipation and their effects
Serial non-participation is a response behavior that is frequently found in stated choice experiments. One form of serial non-participation is that a varying number of respondents chooses always the zero-price or status quo alternative. The approaches used in the literature to deal with this problem vary from excluding those respondents to using applying latent class models to endogenously allow for different preference structures. However, latent class models also allow to assign respondents to a known class. In this paper we compare specifications of latent class models with and without restrictions. Additionally, we control for differences in the error variance across respondents by applying a scale-extended latent class model. The comparisons are designed to show whether respondents are allocated differently among classes and whether willingness to pay estimates are affected significantly. The data are from a choice experiment regarding management actions to enhance forest biodiversity. The data set is characterized by a high percentage of respondents who were not willing to pay; almost 50% of the respondents always chose the zero price alternative locating this sample rather at the top of the range of respondents who are not willing to pay.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 18 (2012)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/701775/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/701775/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jürgen Meyerhoff & Ulf Liebe, 2009. "Status Quo Effect in Choice Experiments: Empirical Evidence on Attitudes and Choice Task Complexity," Land Economics, University of Wisconsin Press, vol. 85(3), pages 515-528.
- Adamowicz, Wiktor & Dupont, Diane & Krupnick, Alan & Zhang, Jing, 2011. "Valuation of cancer and microbial disease risk reductions in municipal drinking water: An analysis of risk context using multiple valuation methods," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 213-226, March.
- Boxall, Peter C. & Adamowicz, Wiktor L. & Moon, Amanda, 2009.
"Complexity in choice experiments: choice of the status quo alternative and implications for welfare measurement,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 53(4), December.
- Peter Boxall & W. L. (Vic) Adamowicz & Amanda Moon, 2009. "Complexity in choice experiments: choice of the status quo alternative and implications for welfare measurement ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 503-519, October.
- Danny Campbell & David A. Hensher & Riccardo Scarpa, 2011. "Non-attendance to attributes in environmental choice analysis: a latent class specification," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 54(8), pages 1061-1076, December.
- Denzil G. Fiebig & Michael P. Keane & Jordan Louviere & Nada Wasi, 2010. "The Generalized Multinomial Logit Model: Accounting for Scale and Coefficient Heterogeneity," Marketing Science, INFORMS, vol. 29(3), pages 393-421, 05-06.
- Scarpa, Riccardo & Chilton, Susan M. & Hutchinson, W. George & Buongiorno, Joseph, 2000. "Valuing the recreational benefits from the creation of nature reserves in Irish forests," Ecological Economics, Elsevier, vol. 33(2), pages 237-250, May.
- Riccardo Scarpa & Susan M. Chilton & W. George Hutchinson & Joseph Buongiorno, 1999. "Valuing the Recreational Benefits From the Creation of Nature Reserves in Irish Forests," Working Papers 1999.11, Fondazione Eni Enrico Mattei.
- Kamakura, Wagner A & Wedel, Michel, 2004. "An Empirical Bayes Procedure for Improving Individual-Level Estimates and Predictions from Finite Mixtures of Multinomial Logit Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 22(1), pages 121-125, January.
- Danny Campbell & W. Hutchinson & Riccardo Scarpa, 2008. "Incorporating Discontinuous Preferences into the Analysis of Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(3), pages 401-417, November.
- Danny Campbell & W. George Hutchinson & Riccardo Scarpa, 2007. "Incorporating Discontinuous Preferences into the Analysis of Discrete Choice Experiments," Working Papers in Economics 07/18, University of Waikato.
- Samuelson, William & Zeckhauser, Richard, 1988. "Status Quo Bias in Decision Making," Journal of Risk and Uncertainty, Springer, vol. 1(1), pages 7-59, March.
- Flynn, Terry Nicholas & Louviere, Jordan J. & Peters, Tim J. & Coast, Joanna, 2010. "Using discrete choice experiments to understand preferences for quality of life. Variance-scale heterogeneity matters," Social Science & Medicine, Elsevier, vol. 70(12), pages 1957-1965, June.
- Adamowicz, Wiktor L. & Boxall, Peter C. & Williams, Michael & Louviere, Jordan, 1995. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments versus Contingent Valuation," Staff Paper Series 24126, University of Alberta, Department of Resource Economics and Environmental Sociology.
- Stephane Hess & John Rose, 2012. "Can scale and coefficient heterogeneity be separated in random coefficients models?," Transportation, Springer, vol. 39(6), pages 1225-1239, November.
- Riccardo Scarpa & Kenneth G. Willis & Melinda Acutt, 2007. "Valuing externalities from water supply: Status quo, choice complexity and individual random effects in panel kernel logit analysis of choice experiments," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 50(4), pages 449-466.
- Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
- Mike Burton & Dan Rigby, 2009. "Hurdle and Latent Class Approaches to Serial Non-Participation in Choice Models," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(2), pages 211-226, February.
- Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
- Christie, Mike & Hanley, Nick & Warren, John & Murphy, Kevin & Wright, Robert & Hyde, Tony, 2006. "Valuing the diversity of biodiversity," Ecological Economics, Elsevier, vol. 58(2), pages 304-317, June.
- Søren Olsen, 2009. "Choosing Between Internet and Mail Survey Modes for Choice Experiment Surveys Considering Non-Market Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(4), pages 591-610, December.
- Mara Thiene & Riccardo Scarpa, 2009. "Deriving and Testing Efficient Estimates of WTP Distributions in Destination Choice Models," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(3), pages 379-395, November.
- Edward Morey & Jennifer Thacher & William Breffle, 2006. "Using Angler Characteristics and Attitudinal Data to Identify Environmental Preference Classes: A Latent-Class Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(1), pages 91-115, 05.
- 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.
- Scarpa, Riccardo & Thiene, Mara & Hensher, David A., 2009. "Monitoring Choice Task Attribute Attendance In Non-Market Valuation Of Multiple Park Management Services: Does It Matter?," 2009 Conference, August 16-22, 2009, Beijing, China 50830, International Association of Agricultural Economists.
- Stephane Hess & Amanda Stathopoulos & Andrew Daly, 2012. "Allowing for heterogeneous decision rules in discrete choice models: an approach and four case studies," Transportation, Springer, vol. 39(3), pages 565-591, May.
- Scarpa, R. & Thiene, M. & Train, K., 2008. "Appendix to Utility in WTP space: a tool to address confounding random scale effects in destination choice to the Alps," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 90(4), November.
- Ben McNair & David Hensher & Jeff Bennett, 2012. "Modelling Heterogeneity in Response Behaviour Towards a Sequence of Discrete Choice Questions: A Probabilistic Decision Process Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(4), pages 599-616, April.
- McNair, Ben J. & Heshner, David A. & Bennett, Jeffrey W., 2011. "Modelling heterogeneity in response behaviour towards a sequence of discrete choice questions: a probabilistic decision process model," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100585, Australian Agricultural and Resource Economics Society.
- Morey, Edward & Thiene, Mara, 2012. "A parsimonious, stacked latent-class methodology for predicting behavioral heterogeneity in terms of life-constraint heterogeneity," Ecological Economics, Elsevier, vol. 74(C), pages 130-144.
- Boxall, Peter C. & Adamowicz, Wiktor L., 1999. "Understanding Heterogeneous Preferences in Random Utility Models: The Use of Latent Class Analysis," Staff Paper Series 24090, University of Alberta, Department of Resource Economics and Environmental Sociology.
- Roger H. von Haefen & D. Matthew Massey & Wiktor L. Adamowicz, 2005. "Serial Nonparticipation in Repeated Discrete Choice Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 1061-1076.
- Meyerhoff, Jürgen & Liebe, Ulf & Hartje, Volkmar, 2009. "Benefits of biodiversity enhancement of nature-oriented silviculture: Evidence from two choice experiments in Germany," Journal of Forest Economics, Elsevier, vol. 15(1-2), pages 37-58, January.
- Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
- Campbell, Danny & Hensher, David A. & Scarpa, Riccardo, 2012. "Cost thresholds, cut-offs and sensitivities in stated choice analysis: Identification and implications," Resource and Energy Economics, Elsevier, vol. 34(3), pages 396-411.
- Riccardo Scarpa & Mara Thiene & Kenneth Train, 2008. "Utility in Willingness to Pay Space: A Tool to Address Confounding Random Scale Effects in Destination Choice to the Alps," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 994-1010.
- 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, Foundation for the European Review of Agricultural Economics, vol. 36(2), pages 151-174, June. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:foreco:v:18:y:2012:i:4:p:355-369. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.