IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v94y2012i1p189-208.html
   My bibliography  Save this article

Latent Thresholds Analysis of Choice Data under Value Uncertainty

Author

Listed:
  • Mimako Kobayashi
  • Klaus Moeltner
  • Kimberly Rollins

Abstract

In many non-market valuation settings stakeholders will be uncertain as to their exact willingness-to-pay for a proposed environmental amenity. It then makes sense for the analyst to treat this value as a random variable with distribution only known to the respondent. In stated preference settings, researchers have used elicitation formats with multiple bids and uncertain-response options to learn about individual value distributions. Past efforts have focused on inference involving the expectation of individual densities. This requires stringent and likely unrealistic assumptions regarding the shape or moments of individual value distributions. We propose a Latent Thresholds Estimator that focuses instead on the range, i.e. minimum and maximum willingness-to-pay of individual respondents. The estimator efficiently exploits correlation patterns in individual responses and does not require any restrictive assumptions on underlying values. It also nests some of the existing approaches, which are not statistically supported for our empirical application. Copyright 2012, Oxford University Press.

Suggested Citation

  • Mimako Kobayashi & Klaus Moeltner & Kimberly Rollins, 2012. "Latent Thresholds Analysis of Choice Data under Value Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(1), pages 189-208.
  • Handle: RePEc:oup:ajagec:v:94:y:2012:i:1:p:189-208
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/ajae/aar129
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jed Cohen, Klaus Moeltner, Johannes Reichl and Michael Schmidthaler, 2016. "An Empirical Analysis of Local Opposition to New Transmission Lines Across the EU-27," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    2. Dekker, Thijs & Hess, Stephane & Brouwer, Roy & Hofkes, Marjan, 2016. "Decision uncertainty in multi-attribute stated preference studies," Resource and Energy Economics, Elsevier, vol. 43(C), pages 57-73.
    3. Stephane Hess & Marek Giergiczny, 2015. "Intra-respondent Heterogeneity in a Stated Choice Survey on Wetland Conservation in Belarus: First Steps Towards Creating a Link with Uncertainty in Contingent Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(3), pages 327-347, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:94:y:2012:i:1:p:189-208. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/aaeaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.