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Incentive compatibility tests of choice experiment value elicitation questions

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Listed author(s):
  • Collins, Jill P.
  • Vossler, Christian A.

Abstract

This paper uses laboratory experiments with induced values to address fundamental issues related to the incentive compatibility of choice experiment value elicitation questions. In particular, we compare two- versus three-option choice sets and the effect of using alternative provision rules, including one where the outcome is influenced by both participant and "regulator" votes. We find the overall proportion of choices that are inconsistent with induced preferences is rather low. However, there are more deviations from induced preferences for two-option choice sets, and for alternatives to a simple plurality vote implementation rule. A multinomial probit analysis of choices in tandem with a mixed logit welfare analysis suggests there is a statistically significant but modest degree of bias towards selecting the status quo option.

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File URL: http://www.sciencedirect.com/science/article/pii/S0095-0696(09)00032-1
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Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 58 (2009)
Issue (Month): 2 (September)
Pages: 226-235

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Handle: RePEc:eee:jeeman:v:58:y:2009:i:2:p:226-235
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622870

Keywords: Choice experiment Laboratory experiment Voting theory Willingness to pay Status quo bias Mixed logit;

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Cited by:

  1. Scheufele, Gabriela & Bennett, Jeffrey W., 2010. "Ordering effects and strategic response in discrete choice experiments," Research Reports 107743, Australian National University, Environmental Economics Research Hub.
  2. Giacomo Pallante & Adam Drucker, 2014. "Niche Markets for Agrobiodiversity Conservation: Preference and Scale Heterogeneity Effects on Nepalese Consumers’ WTP for Finger Millet Products," SEEDS Working Papers 1414, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised May 2014.
  3. Nicolas Jacquemet & Alexander James & Stéphane Luchini & Jason F. Shogren, 2017. "Referenda Under Oath," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(3), pages 479-504, July.
  4. Poe, Gregory L. & Vossler, Christian A., 2009. "Consequentiality and contingent values: an emerging paradigm," MPRA Paper 38864, University Library of Munich, Germany.
  5. Rabotyagov, Sergey S. & Lin, Sonja, 2013. "Small forest landowner preferences for working forest conservation contract attributes: A case of Washington State, USA," Journal of Forest Economics, Elsevier, vol. 19(3), pages 307-330.
  6. Bruno Lanz & Allan Provins, 2013. "Valuing Local Environmental Amenity with Discrete Choice Experiments: Spatial Scope Sensitivity and Heterogeneous Marginal Utility of Income," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(1), pages 105-130, September.
  7. Richard Carson & Theodore Groves, 2007. "Incentive and informational properties of preference questions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 181-210, May.
  8. repec:hal:wpaper:halshs-00443668 is not listed on IDEAS
  9. Mikołaj Czajkowski & Christian A. Vossler & Wiktor Budziński & Aleksandra Wiśniewska & Ewa Zawojska, 2015. "Addressing empirical challenges related to the incentive compatibility of stated preference methods," Working Papers 2015-31, Faculty of Economic Sciences, University of Warsaw.
  10. Scheufele, Gabriela & Bennett, Jeff, 2013. "Effects of alternative elicitation formats in discrete choice experiments," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(2), June.
  11. Meyerhoff, Jürgen & Glenk, Klaus, 2015. "Learning how to choose—effects of instructional choice sets in discrete choice experiments," Resource and Energy Economics, Elsevier, vol. 41(C), pages 122-142.
  12. Nicolas Jacquemet & Robert‐Vincent Joule & Stéphane Luchini & Jason F. Shogren, 2011. "Do People Always Pay Less Than They Say? Testbed Laboratory Experiments with IV and HG Values," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(5), pages 857-882, October.
  13. Weng, Weizhe & Morrison, Mark & Boyle, Kevin & Boxall, Peter, 2017. "The effect of the number of alternatives in a choice experiment with an application to the Macquarie Marshes, AU," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252836, Southern Agricultural Economics Association.
  14. Thijs Dekker & Roy Brouwer & Marjan Hofkes & Klaus Moeltner, 2011. "The Effect of Risk Context on the Value of a Statistical Life: a Bayesian Meta-model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(4), pages 597-624, August.
  15. Oehlmann, Malte & Meyerhoff, Jürgen & Mariel, Petr & Weller, Priska, 2017. "Uncovering context-induced status quo effects in choice experiments," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 59-73.
  16. repec:dau:papers:123456789/9717 is not listed on IDEAS
  17. Gabriela Scheufele & Jeff Bennett, 2012. "Response Strategies and Learning in Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 52(3), pages 435-453, July.

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