Preferences, rational choices and economic valuation: Some empirical tests
This study focuses on the respondent rationality hypothesis, usually assumed to be true in Discrete Choice Experiments. We examine lexicographic preferences, the influence of consistency, and the role of task complexity in the individual choice process. To this end, we carry out rationality tests in a survey on forest recreation. Results show that choice set orderings do not impact on choice probability. If a violation of continuity or consistency axioms does impact on choice probability, the Willingness-To-Pay estimators calculated using the total sample and the sub-samples of “irrational” respondents are not significantly different. This serves as a basis for discussing the traditional concept of rationality.
Volume (Year): 41 (2012)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/inca/620175|
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.:
- Adamowicz, Wiktor L. & Louviere, J. & Willians, M., 1992.
"Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities,"
Staff Paper Series
232531, University of Alberta, Department of Resource Economics and Environmental Sociology.
- Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
- Arne Risa Hole, 2007.
"A comparison of approaches to estimating confidence intervals for willingness to pay measures,"
John Wiley & Sons, Ltd., vol. 16(8), pages 827-840.
- Arne Risa Hole, 2006. "A comparison of approaches to estimating confidence intervals for willingness to pay measures," Working Papers 008cherp, Centre for Health Economics, University of York.
- Dachary-Bernard, Jeanne, 2007. "La méthode des choix multi-attributs appliquée aux Monts d’Arrée," Cahiers d'Economie et de Sociologie Rurales (CESR), INRA (French National Institute for Agricultural Research), vol. 84.
- Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
- Thomas P. Holmes & Kevin J. Boyle, 2005. "Dynamic Learning and Context-Dependence in Sequential, Attribute-Based, Stated-Preference Valuation Questions," Land Economics, University of Wisconsin Press, vol. 81(1).
- Mandy Ryan & Angela Bate, 2001. "Testing the assumptions of rationality, continuity and symmetry when applying discrete choice experiments in health care," Applied Economics Letters, Taylor & Francis Journals, vol. 8(1), pages 59-63.
- Christie, Michael & Hanley, Nick & Hynes, Stephen, 2007. "Valuing enhancements to forest recreation using choice experiment and contingent behaviour methods," Journal of Forest Economics, Elsevier, vol. 13(2-3), pages 75-102, August.
- Mickael Bech & Dorte Gyrd-Hansen, 2005. "Effects coding in discrete choice experiments," Health Economics, John Wiley & Sons, Ltd., vol. 14(10), pages 1079-1083.
- Caussade, Sebastián & Ortúzar, Juan de Dios & Rizzi, Luis I. & Hensher, David A., 2005. "Assessing the influence of design dimensions on stated choice experiment estimates," Transportation Research Part B: Methodological, Elsevier, vol. 39(7), pages 621-640, August.
- Donkers, A.C.D. & Melenberg, B., 2002. "Testing predictive performance of binary choice models," Econometric Institute Research Papers EI 2002-01, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
- Fredrik Carlsson & Peter Martinsson, 2008. "How Much is Too Much?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 40(2), pages 165-176, June.
- Scott, Anthony, 2002. "Identifying and analysing dominant preferences in discrete choice experiments: An application in health care," Journal of Economic Psychology, Elsevier, vol. 23(3), pages 383-398, June.
- Swait, Joffre & Adamowicz, Wiktor, 2001. " The Influence of Task Complexity on Consumer Choice: A Latent Class Model of Decision Strategy Switching," Journal of Consumer Research, Oxford University Press, vol. 28(1), pages 135-48, June.
- 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, Department of Economics.
- 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.
- David Hensher & John Rose & William Greene, 2005. "The implications on willingness to pay of respondents ignoring specific attributes," Transportation, Springer, vol. 32(3), pages 203-222, 05.
- Emily Lancsar & Jordan Louviere, 2006. "Deleting 'irrational' responses from discrete choice experiments: a case of investigating or imposing preferences?," Health Economics, John Wiley & Sons, Ltd., vol. 15(8), pages 797-811.
- Jack L. Knetsch, 2004. "Valuing Statistical Lives: The Choice of Measure Also Matters," Journal of Consumer Policy, Springer, vol. 27(1), pages 99-104, 03.
- Saelensminde, Kjartan, 2006. "Causes and consequences of lexicographic choices in stated choice studies," Ecological Economics, Elsevier, vol. 59(3), pages 331-340, September.
- Nick Hanley & Robert Wright & Gary Koop, 2002. "Modelling Recreation Demand Using Choice Experiments: Climbing in Scotland," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(3), pages 449-466, July.
- Boxall, Peter C. & Adamowicz, Wiktor L. & Swait, Joffre & Williams, Michael & Louviere, Jordan, 1996. "A comparison of stated preference methods for environmental valuation," Ecological Economics, Elsevier, vol. 18(3), pages 243-253, September.
- Knetsch, Jack L, 1989. "The Endowment Effect and Evidence of Nonreversible Indifference Curves," American Economic Review, American Economic Association, vol. 79(5), pages 1277-84, December.
- McIntosh, E. & Ryan, M., 2002. "Using discrete choice experiments to derive welfare estimates for the provision of elective surgery: Implications of discontinuous preferences," Journal of Economic Psychology, Elsevier, vol. 23(3), pages 367-382, June.
- 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.
- Danny Campbell & W. George Hutchinson & Riccardo Scarpa, 2006.
"Lexicographic Preferences in Discrete Choice Experiments: Consequences on Individual-Specific Willingness to Pay Estimates,"
2006.128, Fondazione Eni Enrico Mattei.
- Danny Campbell & George Hutchinson & Riccardo Scarpa, 2006. "Lexicographic preferences for rural environmental landscape improvements: implications on individual-specific willingness to pay estimates," Working Papers 0610, Rural Economy and Development Programme,Teagasc.
- Foster, Vivien & Mourato, Susana, 2002. "Testing for Consistency in Contingent Ranking Experiments," Journal of Environmental Economics and Management, Elsevier, vol. 44(2), pages 309-328, September.
- Kaplowitz, Michael D. & Hoehn, John P., 2001. "Do focus groups and individual interviews reveal the same information for natural resource valuation?," Ecological Economics, Elsevier, vol. 36(2), pages 237-247, February.
- Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
- Kahneman, Daniel & Knetsch, Jack L., 1992. "Valuing public goods: The purchase of moral satisfaction," Journal of Environmental Economics and Management, Elsevier, vol. 22(1), pages 57-70, January.
- Louviere, Jordan J, 2001. " What If Consumer Experiments Impact Variances as Well as Means? Response Variability as a Behavioral Phenomenon," Journal of Consumer Research, Oxford University Press, vol. 28(3), pages 506-11, December.
- Danny Campbell, 2007. "Willingness to Pay for Rural Landscape Improvements: Combining Mixed Logit and Random-Effects Models," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(3), pages 467-483, 09.
- Hanley, Nick & Mourato, Susana & Wright, Robert E, 2001. " Choice Modelling Approaches: A Superior Alternative for Environmental Valuation?," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 435-62, July.
- Knetsch, Jack L., 1992. "Preferences and nonreversibility of indifference curves," Journal of Economic Behavior & Organization, Elsevier, vol. 17(1), pages 131-139, January.
When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:41:y:2012:i:2:p:198-206. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.