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The information content of a stated choice experiment: A new method and its application to the value of a statistical life

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  • Rouwendal, Jan
  • de Blaeij, Arianne
  • Rietveld, Piet
  • Verhoef, Erik

Abstract

This paper presents a new method to assess the distribution of values of time, and values of statistical life, over participants to a stated choice experiment. The method does not require the researcher to make an a priori assumption on the type of distribution, as is required for example for mixed logit models. It requires a few assumptions to hold true, namely that the valuations to be determined are constant for each individual, and that respondents make choices according to their preferences. These assumptions allow the derivation of lower and upper bounds on the (cumulative) distribution of the values of interest over respondents, by deriving for each choice set the value(s) for which the respondent would be indifferent between the alternatives offered, and next deriving from the choice actually made the respondent's implied minimum or maximum value(s). We also provide an extension of the method that incorporates the possibility that errors are made. The method is illustrated using data from an experiment investigating the value of time and the value of statistical life. We discuss the possibility to improve the information content of stated choice experiments by optimizing the attribute levels shown to respondents, which is especially relevant because it would help in selecting the appropriate distribution for mixed logit estimates for the same data.

Suggested Citation

  • Rouwendal, Jan & de Blaeij, Arianne & Rietveld, Piet & Verhoef, Erik, 2010. "The information content of a stated choice experiment: A new method and its application to the value of a statistical life," Transportation Research Part B: Methodological, Elsevier, vol. 44(1), pages 136-151, January.
  • Handle: RePEc:eee:transb:v:44:y:2010:i:1:p:136-151
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Yuan, Yuan & You, Wen & Boyle, Kevin J., 2015. "A guide to heterogeneity features captured by parametric and nonparametric mixing distributions for the mixed logit model," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205733, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    2. Mouter, Niek & Chorus, Caspar, 2016. "Value of time – A citizen perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 91(C), pages 317-329.
    3. repec:eee:transa:v:106:y:2017:i:c:p:333-349 is not listed on IDEAS
    4. Bliemer, Michiel C.J. & Rose, John M., 2011. "Experimental design influences on stated choice outputs: An empirical study in air travel choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 63-79, January.
    5. Börjesson, Maria & Eliasson, Jonas, 2014. "Experiences from the Swedish Value of Time study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 144-158.

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