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Labelling effects in discrete choice experiments

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

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.

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File URL: http://purl.umn.edu/148831
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Paper provided by Socio-Economic Marine Research Unit, National University of Ireland, Galway in its series Working Papers with number 148831.

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Date of creation: 2012
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Handle: RePEc:ags:semrui:148831
Contact details of provider: Web page: http://www.nuigalway.ie/semru/index.html

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  1. Danny Campbell & W George Hutchinson & Riccardo Scarpa, 2009. "Using choice experiments to explore the spatial distribution of willingness to pay for rural landscape improvements," Environment and Planning A, Pion Ltd, London, vol. 41(1), pages 97-111, January.
  2. Murdock, Jennifer, 2006. "Handling unobserved site characteristics in random utility models of recreation demand," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 1-25, January.
  3. Stephen Hynes & Nick Hanley & Riccardo Scarpa, 2008. "Effects on Welfare Measures of Alternative Means of Accounting for Preference Heterogeneity in Recreational Demand Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 1011-1027.
  4. von Haefen, Roger H. & Phaneuf, Daniel J., 2003. "Estimating preferences for outdoor recreation:: a comparison of continuous and count data demand system frameworks," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 612-630, May.
  5. Ricardo Scarpa & Mara Thiene & Kenneth Train, 2006. "Utility in WTP Space: A Tool to Address Confounding Random Scale Effects in Destination Choice to the Alps," Working Papers in Economics 06/15, University of Waikato, Department of Economics.
  6. Cathal Buckley & Stephen Hynes & Tom van Rensburg & Edel Doherty, 2009. "Walking in the Irish countryside: landowner preferences and attitudes to improved public access provision," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(8), pages 1053-1070.
  7. Riccardo Scarpa & Timothy J. Gilbride & Danny Campbell & David A. Hensher, 2009. "Modelling attribute non-attendance in choice experiments for rural landscape valuation," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(2), pages 151-174, June.
  8. Junyi Shen & Tatsuyoshi Saijo, 2007. "Does energy efficiency label alter consumersf purchase decision? A latent class approach on Shanghai data," OSIPP Discussion Paper 07E005, Osaka School of International Public Policy, Osaka University.
  9. Nick Hanley & Robert Wright & Gary Koop, 2002. "Modelling Recreation Demand Using Choice Experiments: Climbing in Scotland," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(3), pages 449-466, July.
  10. Mara Thiene & Riccardo Scarpa, 2009. "Deriving and Testing Efficient Estimates of WTP Distributions in Destination Choice Models," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(3), pages 379-395, November.
  11. Danny Campbell & W. George Hutchinson & Riccardo Scarpa, 2007. "Incorporating Discontinuous Preferences into the Analysis of Discrete Choice Experiments," Working Papers in Economics 07/18, University of Waikato, Department of Economics.
  12. Thomas Bue Bjorner & Lars Garn Hansen & Clifford S. Russell, 2002. "Environmental Labelling and Consumer's Choice - An Empirical Analysis of the Effect of the Nordic Swan," Vanderbilt University Department of Economics Working Papers 0203, Vanderbilt University Department of Economics.
  13. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  14. Blamey, R. K. & Bennett, J. W. & Louviere, J. J. & Morrison, M. D. & Rolfe, J., 2000. "A test of policy labels in environmental choice modelling studies," Ecological Economics, Elsevier, vol. 32(2), pages 269-286, February.
  15. Scarpa, R. & Thiene, M. & Train, K., 2008. "Appendix to Utility in WTP space: a tool to address confounding random scale effects in destination choice to the Alps," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 90(4), November.
  16. Provencher, Bill & Bishop, R.C.Richard C., 2004. "Does accounting for preference heterogeneity improve the forecasting of a random utility model? A case study," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 793-810, July.
  17. Stephen Hynes & Danny Campbell & Peter Howley, 2011. "A Holistic vs. an Attribute‐based Approach to Agri‐Environmental Policy Valuation: Do Welfare Estimates Differ?," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(2), pages 305-329, 06.
  18. Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
  19. Christie, Michael & Hanley, Nick & Hynes, Stephen, 2007. "Valuing enhancements to forest recreation using choice experiment and contingent behaviour methods," Journal of Forest Economics, Elsevier, vol. 13(2-3), pages 75-102, August.
  20. Danny Campbell & David A. Hensher & Riccardo Scarpa, 2011. "Non-attendance to attributes in environmental choice analysis: a latent class specification," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 54(8), pages 1061-1076, December.
  21. Mikołaj Czajkowski & Nick Hanley, 2009. "Using Labels to Investigate Scope Effects in Stated Preference Methods," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(4), pages 521-535, December.
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