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Labelling effects in discrete choice experiments

Author

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  • Doherty, Edel
  • Campbell, Danny
  • Hynes, Stephen
  • van Rensburg, Thomas

Abstract

Discrete choice experiment data aimed at eliciting the demand for recreational walking trails on farmland in Ireland is used to explore whether some respondents reach their choices solely on the basis of the alternative’s label. To investigate this type of processing strategy, this paper exploits a discrete mixtures approach that also encompasses continuous distributions to reflect the heterogeneity in preferences for the attributes. We find evidence that a proportion of respondents adopt this processing strategy and that the strategies employed by rural and urban respondents are somewhat different. Results further highlight that model fit and measures of welfare are sensitive to assumptions related to processing strategies among respondents.

Suggested Citation

  • Doherty, Edel & Campbell, Danny & Hynes, Stephen & van Rensburg, Thomas, 2012. "Labelling effects in discrete choice experiments," Working Papers 148831, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    • Handle: RePEc:ags:semrui:148831
    DOI: 10.22004/ag.econ.148831
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    References listed on IDEAS

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    Cited by:

    1. Galina Williams, 2022. "Temporal stability of WTP estimates in labeled and unlabeled choice experiment for emissions reduction options, Queensland, Australia," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(4), pages 533-550, October.
    2. Williams, Galina & Rolfe, John, 2017. "Willingness to pay for emissions reduction: Application of choice modeling under uncertainty and different management options," Energy Economics, Elsevier, vol. 62(C), pages 302-311.

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    Environmental Economics and Policy; Land Economics/Use;

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