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

Author

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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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    Cited by:

    1. Taro Ohdoko & Satoru Komatsu & Shinji Kaneko, 2013. "Residential preferences for stable electricity supply and a reduction in air pollution risk: a benefit transfer study using choice modeling in China," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 15(3), pages 309-328, July.
    2. Mahmood, Talat & Schömann, Klaus, 2009. "The decision to migrate: A simultaneous decision making approach," Discussion Papers, Research Unit: Competition and Innovation SP II 2009-17, Social Science Research Center Berlin (WZB).
    3. Dissanayake,Sahan T. M. & Beyene,Abebe Damte & Bluffstone,Randall & Gebreegziabher, Zenebe & Martinsson,Peter & Mekonnen,Alemu & Toman,Michael A. & Vieider,Ferdinand M., 2015. "Preferences for REDD+ contract attributes in low-income countries : a choice experiment in Ethiopia," Policy Research Working Paper Series 7296, The World Bank.

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