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'No-choice' options within a nested logit model: one model is insufficient

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  • Arianne de Blaeij
  • Paulo Nunes
  • Jeroen C. J. M. van den Bergh

Abstract

We examine the impact of providing a 'no-choice' option in attribute-based valuation experiments. The aim of the experiment was to assess monetary values of cockle fishery management practices in the Dutch Wadden Sea for different stakeholder groups, namely Dutch citizens, local residents and tourists. The current policy debate about the management of the Wadden Sea stresses the fact that individual preferences with respect to cockle-fishery differ. The aim of this article is to analyse the individual preferences in a objective way. Special attention is given to the influence of including a 'no-choice option', which is analysed using a nested logit model. We test whether the full set of options can be considered as close substitutes. The estimation results show that the influence of including the no-choice option differs among the stakeholders considered.

Suggested Citation

  • Arianne de Blaeij & Paulo Nunes & Jeroen C. J. M. van den Bergh, 2007. "'No-choice' options within a nested logit model: one model is insufficient," Applied Economics, Taylor & Francis Journals, vol. 39(10), pages 1245-1252.
    • Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1245-1252
    DOI: 10.1080/00036840600852955
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    References listed on IDEAS

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    1. Peter Groothuis & John Whitehead, 2002. "Does don't know mean no? Analysis of 'don't know' responses in dichotomous choice contingent valuation questions," Applied Economics, Taylor & Francis Journals, vol. 34(15), pages 1935-1940.
    2. Elisabetta Strazzera & Riccardo Scarpa & Pinuccia Calia & Guy Garrod & Kenneth Willis, 2003. "Modelling zero values and protest responses in contingent valuation surveys," Applied Economics, Taylor & Francis Journals, vol. 35(2), pages 133-138.
    3. Mandy Ryan & Diane Skåtun, 2004. "Modelling non‐demanders in choice experiments," Health Economics, John Wiley & Sons, Ltd., vol. 13(4), pages 397-402, April.
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