Non-attendance to attributes in environmental choice analysis: a latent class specification
There is a growing literature on the design and use of stated choice experiments. Analysts have developed sophisticated ways of analysing such data, using a form of discrete choice model to identify the marginal (dis)utility associated with observed attributes linked to an alternative, as well as accounting for preference and scale heterogeneity. There is also a growing literature studying the attribute processing rules that respondents use as a way of simplifying the task of choosing. Using the latent class framework, we define classes based on rules that recognise the non-attendance to one or more attributes. These processing rules are postulated to be used in real markets as a form of cognitive rationalisation. The empirical study involves a choice amongst rural environmental landscape improvements in the Republic of Ireland. We estimate models and calculate a marginal willingness to pay (WTP) for four landscape improvements, and contrast it with the results from a model specification in which all attributes are assumed to be attended to with parameter preservation. We find that the marginal WTP is, on average, significantly higher when full attribute preservation specification is adopted, raising questions about the appropriateness of current practice that assume a fully compensatory attribute choice rule.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 54 (2011)
Issue (Month): 8 (December)
|Contact details of provider:|| Web page: http://www.tandfonline.com/CJEP20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/CJEP20|
When requesting a correction, please mention this item's handle: RePEc:taf:jenpmg:v:54:y:2011:i:8:p:1061-1076. 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: (Michael McNulty)
If references are entirely missing, you can add them using this form.