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What You Don’t Know Might Hurt You: Some Unresolved Issues in the Design and Analysis of Discrete Choice Experiments

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  • Jordan Louviere

Abstract

The papers and comments in this issue focus on four broad areas related to understanding and modeling choices: (1) The use of laboratory experiments to improve valuation methods; (2) The design of stated preference choice set and choice occasions; (3) Latent class models as means of identifying and accommodating preference heterogeneity; and (4) Accommodating uncertainty about the “true” model, modeling ranking and rating tasks and pooling data sources. In what follows I offer some comments on each area, and briefly discuss several unresolved issues associated with each area, closing with some comments about future research opportunities. Copyright Springer 2006

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  • Jordan Louviere, 2006. "What You Don’t Know Might Hurt You: Some Unresolved Issues in the Design and Analysis of Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(1), pages 173-188, May.
    • Handle: RePEc:kap:enreec:v:34:y:2006:i:1:p:173-188
    DOI: 10.1007/s10640-005-4817-0
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    References listed on IDEAS

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    1. David Layton & S. Lee, 2006. "Embracing Model Uncertainty: Strategies for Response Pooling and Model Averaging," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(1), pages 51-85, May.
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    Cited by:

    1. Balcombe, Kelvin & Chalak, Ali & Fraser, Iain, 2009. "Model selection for the mixed logit with Bayesian estimation," Journal of Environmental Economics and Management, Elsevier, vol. 57(2), pages 226-237, March.
    2. Teisl, Mario F. & Roe, Brian E., 2010. "Consumer willingness-to-pay to reduce the probability of retail foodborne pathogen contamination," Food Policy, Elsevier, vol. 35(6), pages 521-530, December.
    3. Rolfe, John & Bennett, Jeff, 2009. "The impact of offering two versus three alternatives in choice modelling experiments," Ecological Economics, Elsevier, vol. 68(4), pages 1140-1148, February.
    4. Chavez, Daniel & Palma, Marco, 2015. "Off the reservation: Pushing the bounds of rationality in experimental auctions," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 202164, Agricultural and Applied Economics Association.
    5. John Brazier & Donna Rowen & Yaling Yang & Aki Tsuchiya, 2012. "Comparison of health state utility values derived using time trade-off, rank and discrete choice data anchored on the full health-dead scale," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(5), pages 575-587, October.
    6. Grisolía, José M. & Longo, Alberto & Boeri, Marco & Hutchinson, George & Kee, Frank, 2013. "Trading off dietary choices, physical exercise and cardiovascular disease risks," Social Science & Medicine, Elsevier, vol. 93(C), pages 130-138.
    7. Aschemann-Witzel, Jessica, 2012. "Facilitating healthy choice at the point of sale: fine-tuning nutrition labels versus editing choice?," 2012 AAEA/EAAE Food Environment Symposium 122731, Agricultural and Applied Economics Association.
    8. 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.
    9. Marit Kragt, 2013. "The Effects of Changing Cost Vectors on Choices and Scale Heterogeneity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(2), pages 201-221, February.
    10. Smirnov, Oleg A. & Egan, Kevin J., 2012. "Spatial random utility model with an application to recreation demand," Economic Modelling, Elsevier, vol. 29(1), pages 72-78.
    11. Veisten, Knut & Flügel, Stefan & Rizzi, Luis I. & Ortúzar, Juan de Dios & Elvik, Rune, 2013. "Valuing casualty risk reductions from estimated baseline risk," Research in Transportation Economics, Elsevier, vol. 43(1), pages 50-61.
    12. Angelina L�zaro Alqu�zar & Bego�a �lvarez Farizo, 2006. "Prioritisation of patients on waiting lists: a community workshop approach," Documentos de Trabajo dt2006-08, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    13. Potoglou, Dimitris & Burge, Peter & Flynn, Terry & Netten, Ann & Malley, Juliette & Forder, Julien & Brazier, John E., 2011. "Best-worst scaling vs. discrete choice experiments: An empirical comparison using social care data," Social Science & Medicine, Elsevier, vol. 72(10), pages 1717-1727, May.
    14. Terry Flynn, 2009. "Jordan Louviere, PhD," The Patient: Patient-Centered Outcomes Research, Springer;International Academy of Health Preference Research, vol. 2(2), pages 73-75, June.
    15. Que, Sisi & Awuah-Offei, Kwame & Weidner, Nathan & Wang, Yumin, 2017. "Discrete choice experiment validation: A resource project case study," Journal of choice modelling, Elsevier, vol. 22(C), pages 39-50.
    16. Takama, Takeshi & Tsephel, Stanzin & Johnson, Francis X., 2012. "Evaluating the relative strength of product-specific factors in fuel switching and stove choice decisions in Ethiopia. A discrete choice model of household preferences for clean cooking alternatives," Energy Economics, Elsevier, vol. 34(6), pages 1763-1773.
    17. Helen Scarborough & Jeff Bennett, 2012. "Cost–Benefit Analysis and Distributional Preferences," Books, Edward Elgar Publishing, number 14376.
    18. Carmelo J. León & Jorge E. Araña, 2012. "The Dynamics of Preference Elicitation after an Environmental Disaster: Stability and Emotional Load," Land Economics, University of Wisconsin Press, vol. 88(2), pages 362-381.
    19. Jordan Louviere & Joffre Swait, 2010. "—Discussion of “Alleviating the Constant Stochastic Variance Assumption in Decision Research: Theory, Measurement, and Experimental Test”," Marketing Science, INFORMS, vol. 29(1), pages 18-22, 01-02.
    20. León, Carmelo J. & de León, Javier & Araña, Jorge E. & González, Matías M., 2015. "Tourists' preferences for congestion, residents' welfare and the ecosystems in a national park," Ecological Economics, Elsevier, vol. 118(C), pages 21-29.
    21. Hoyos, David, 2010. "The state of the art of environmental valuation with discrete choice experiments," Ecological Economics, Elsevier, vol. 69(8), pages 1595-1603, June.
    22. Lipovetsky, Stan & Conklin, Michael, 2014. "Finding items cannibalization and synergy by BWS data," Journal of choice modelling, Elsevier, vol. 12(C), pages 1-9.
    23. Smirnov, Oleg A., 2010. "Modeling spatial discrete choice," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 292-298, September.
    24. 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.
    25. Terry Flynn, 2010. "Using Conjoint Analysis and Choice Experiments to Estimate QALY Values," PharmacoEconomics, Springer, vol. 28(9), pages 711-722, September.

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