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Accommodating satisficing behavior in stated choice experiments

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  • Sandorf, Erlend Dancke
  • Campbell, Danny

Abstract

Accumulating evidence suggests that many respondents in stated choice experiments use simplifying strategies and heuristics. Such behavior is a deviation from random utility theory and can lead to biased estimates if not appropriately considered. This paper is a first attempt to systematically explore the use of the satisficing heuristic (Simon, 1955) in the context of a stated choice experiment. We consider 944 possible satisficing rules and allow respondents to revise the rules adopted throughout the choice sequence. While only a small proportion of respondents used the same satisficing rule across the entire sequence, allowing for changes in behavior at different stages reveals evidence that the use of the heuristic follows a learning and fatigue path. Furthermore, considering respondents satisficing leads to improved model fits and different marginal willingness-to-pay estimates.

Suggested Citation

  • Sandorf, Erlend Dancke & Campbell, Danny, 2016. "Accommodating satisficing behavior in stated choice experiments," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235905, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea16:235905
    DOI: 10.22004/ag.econ.235905
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    Keywords

    Environmental Economics and Policy; Food Consumption/Nutrition/Food Safety; Institutional and Behavioral Economics; Research Methods/ Statistical Methods;
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