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A Cautionary Note on Designing Discrete Choice Experiments: A Comment on Lusk and Norwood’s “Effect of Experiment Design on Choice-Based Conjoint Valuation Estimates”

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  • Richard T. Carson
  • Jordan J. Louviere
  • Nada Wasi

Abstract

Recent Monte Carlo work on choosing experimental designs for discrete choice experiments seemed to greatly simplify this choice for applied researchers. It suggested that (a) commonly used designs can generate unbiased estimates for indirect utility function specifications with main effects only and main effects plus higher order terms, and (b) random designs are more efficient than main effects designs. We show that these results are very specific to the particular indirect utility specifications studied and do not generalize well. We further show that conclusions drawn concerning random designs are problematic and potentially dangerous for applied researchers. Copyright 2009, Oxford University Press.

Suggested Citation

  • Richard T. Carson & Jordan J. Louviere & Nada Wasi, 2009. "A Cautionary Note on Designing Discrete Choice Experiments: A Comment on Lusk and Norwood’s “Effect of Experiment Design on Choice-Based Conjoint Valuation Estimates”," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1056-1063.
    • Handle: RePEc:oup:ajagec:v:91:y:2009:i:4:p:1056-1063
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2009.01309.x
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    Cited by:

    1. Chung, Chanjin & Briggeman, Brian C. & Han, Sungill, 2012. "Willingness-to-Pay for Beef Quality Attributes: A Latent Segmentation Analysis of Korean Grocery Shoppers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(4), pages 447-459, November.
    2. Dalia Štreimikienė & Vidas Lekavičius & Gintare Stankūnienė & Aušra Pažėraitė, 2022. "Renewable Energy Acceptance by Households: Evidence from Lithuania," Sustainability, MDPI, vol. 14(14), pages 1-17, July.
    3. Mamine, Fateh & Fares, M'hand & Minviel, Jean Joseph, 2020. "Contract Design for Adoption of Agrienvironmental Practices: A Meta-analysis of Discrete Choice Experiments," Ecological Economics, Elsevier, vol. 176(C).

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