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Non-Participation in Choice Models: Hurdle and Latent Class Models

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  • Burton, Michael P.
  • Rigby, Dan

Abstract

In repeated choice modelling studies, it is often the case that individuals always select the status quo option. Although these choices may reflect considered choices, they may also be the result of alternative decisions about whether to participate in the choice process at all. Alternative methods of dealing with this feature of such data are presented, with the implications for estimates of economic values. In particular we consider the alternatives of excluding such individuals from the data, using hurdle models to explicitly model this group, and consider the possibility of latent class models, that endogenously allow for difference preference structures. The application is to a stated preference choice modelling data set that investigates preferences towards forms of GM foods.

Suggested Citation

  • Burton, Michael P. & Rigby, Dan, 2006. "Non-Participation in Choice Models: Hurdle and Latent Class Models," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25312, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25312
    DOI: 10.22004/ag.econ.25312
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    References listed on IDEAS

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    1. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    2. Wuyang Hu, 2004. "Trading off health, environmental and genetic modification attributes in food," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(3), pages 389-408, September.
    3. Adamowicz, Wiktor L. & Boxall, Peter C. & Williams, Michael & Louviere, Jordan, 1995. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments versus Contingent Valuation," Staff Paper Series 24126, University of Alberta, Department of Resource Economics and Environmental Sociology.
    4. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
    5. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304.
    6. Roger H. von Haefen & D. Matthew Massey & Wiktor L. Adamowicz, 2005. "Serial Nonparticipation in Repeated Discrete Choice Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 1061-1076.
    7. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
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    Cited by:

    1. Dan Rigby & Kelvin Balcombe & Michael Burton, 2009. "Mixed Logit Model Performance and Distributional Assumptions: Preferences and GM foods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(3), pages 279-295, March.

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