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A Review of Stated Choice Method


  • Junyi Shen

    () (Osaka School of International Public policy, Osaka University)


This paper reviews Stated Choice Method (SCM), paying particular attentions on its theoretical background, application, empirical models, experimental design, and procedure to execute. The review suggests that comparing to other stated preference (SP) methods, SCM has a major advantage that it meets the objective of a stated preference analysis to simulate actual consumer behavior by allowing simultaneous evaluations of a number of alternatives or a choice between alternatives. Some advanced models based on the degrees of relaxation of the Independently and Identically Distributed (IID) assumption on error terms are introduced. More complex model seems to be more plausible than relatively simple specifications. Two tests for nested and non-nested models are also discussed to help judge that one model is superior to another model. Finally, this paper introduces the procedure of executing a Stated Choice (SC) experiment.

Suggested Citation

  • Junyi Shen, 2005. "A Review of Stated Choice Method," Discussion Papers in Economics and Business 05-27, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  • Handle: RePEc:osk:wpaper:0527

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    Cited by:

    1. Junyi Shen & Tatsuyoshi Saijo, 2007. "Does energy efficiency label alter consumers f purchase decision? A latent class approach on Shanghai data," OSIPP Discussion Paper 07E005, Osaka School of International Public Policy, Osaka University.
    2. Van Wezemael, Lynn & Caputo, Vincenzina & Nayga, Rodolfo M. & Chryssochoidis, George & Verbeke, Wim, 2014. "European consumer preferences for beef with nutrition and health claims: A multi-country investigation using discrete choice experiments," Food Policy, Elsevier, vol. 44(C), pages 167-176.
    3. Junyi Shen & Takako Nakashima & Izumi Karasawa & Tatsuro Furui & Kenichiro Morishige & Tatsuyoshi Saijo, 2017. "Examining Japanese Women’s Preferences for a New Style of Postnatal Care Facility and Its Attributes," Discussion Paper Series DP2017-23, Research Institute for Economics & Business Administration, Kobe University.
    4. Rezhen Harun & Iulia C. Muresan & Felix H. Arion & Diana E. Dumitras & Ramona Lile, 2015. "Analysis of Factors that Influence the Willingness to Pay for Irrigation Water in the Kurdistan Regional Government, Iraq," Sustainability, MDPI, Open Access Journal, vol. 7(7), pages 1-13, July.
    5. Yongyou Nie & Enci Wang & Qinxin Guo & Junyi Shen, 2017. "Examining Shanghai Consumer Preferences for Electric Vehicles and Their Attributes," Discussion Paper Series DP2017-21, Research Institute for Economics & Business Administration, Kobe University.
    6. Daniel McFadden, 2009. "The human side of mechanism design: a tribute to Leo Hurwicz and Jean-Jacque Laffont," Review of Economic Design, Springer;Society for Economic Design, vol. 13(1), pages 77-100, April.
    7. Junyi Shen & On Fukui & Hiroyuki Hashimoto & Takako Nakashima & Tadashi Kimura & Kenichiro Morishige & Tatsuyoshi Saijo, 2012. "A cost-benefit analysis on the specialization in departments of obstetrics and gynecology in Japan," Health Economics Review, Springer, vol. 2(1), pages 1-10, December.
    8. Junyi Shen & Yusuke Sakata & Yoshizo Hashimoto, 2006. "A Comparison between Latent Class Model and Mixed Logit Model for Transport Mode Choice: Evidences from Two Datasets of Japan," Discussion Papers in Economics and Business 06-05, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    9. Junui Shen & Kazuhito Ogawa & Hiromasa Takahashi, 2014. "Examining the Tradeoff Between Fixed Pay and Performance-Related Pay: A Choice Experiment Approach," Review of Economic Analysis, Rimini Centre for Economic Analysis, vol. 6(2), pages 119-131, December.

    More about this item


    Stated Choice Method (SCM); Stated Preference (SP) method; Independent and Identical Distribution (IID); Extreme Value type I (EV1) distribution;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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