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A discrete choice model with endogenous attribute attendance

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  • Arne Risa Hole

    () (Department of Economics, The University of Sheffield)

Abstract

This paper develops a discrete choice model in which the decision to consider an attribute in the choice process is modelled endogenously. In an application to patients' choice of general practitioner it is found that the proposed model outperforms the standard logit model in terms of goodness of fit and produces substantially different estimates of willingness to pay.

Suggested Citation

  • Arne Risa Hole, 2010. "A discrete choice model with endogenous attribute attendance," Working Papers 2010006, The University of Sheffield, Department of Economics, revised Feb 2010.
  • Handle: RePEc:shf:wpaper:2010006
    as

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    File URL: http://www.shef.ac.uk/economics/research/serps/articles/2010_006.html
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    References listed on IDEAS

    as
    1. Hess, Stephane & Hensher, David A., 2010. "Using conditioning on observed choices to retrieve individual-specific attribute processing strategies," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 781-790, July.
    2. David Hensher & William Greene, 2010. "Non-attendance and dual processing of common-metric attributes in choice analysis: a latent class specification," Empirical Economics, Springer, vol. 39(2), pages 413-426, October.
    3. Swait, Joffre & Ben-Akiva, Moshe, 1987. "Incorporating random constraints in discrete models of choice set generation," Transportation Research Part B: Methodological, Elsevier, vol. 21(2), pages 91-102, April.
    4. Mandy Ryan & Verity Watson & Vikki Entwistle, 2009. "Rationalising the 'irrational': a think aloud study of discrete choice experiment responses," Health Economics, John Wiley & Sons, Ltd., vol. 18(3), pages 321-336.
    5. David A. Hensher, 2006. "How do respondents process stated choice experiments? Attribute consideration under varying information load," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(6), pages 861-878.
    6. 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.
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    Citations

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    Cited by:

    1. Yoo, Hong Il & Doiron, Denise, 2013. "The use of alternative preference elicitation methods in complex discrete choice experiments," Journal of Health Economics, Elsevier, vol. 32(6), pages 1166-1179.
    2. repec:eee:eejocm:v:24:y:2017:i:c:p:36-50 is not listed on IDEAS
    3. Collins, Andrew T. & Rose, John M. & Hensher, David A., 2013. "Specification issues in a generalised random parameters attribute nonattendance model," Transportation Research Part B: Methodological, Elsevier, vol. 56(C), pages 234-253.
    4. Balbontin, Camila & Hensher, David A. & Collins, Andrew T., 2017. "Integrating attribute non-attendance and value learning with risk attitudes and perceptual conditioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 172-191.
    5. Hole, Arne Risa & Kolstad, Julie Riise & Gyrd-Hansen, Dorte, 2013. "Inferred vs. stated attribute non-attendance in choice experiments: A study of doctors’ prescription behaviour," Journal of Economic Behavior & Organization, Elsevier, vol. 96(C), pages 21-31.
    6. Stephane Hess & David Hensher, 2013. "Making use of respondent reported processing information to understand attribute importance: a latent variable scaling approach," Transportation, Springer, vol. 40(2), pages 397-412, February.
    7. Richard Yao & Riccardo Scarpa & John Rose & James Turner, 2015. "Experimental Design Criteria and Their Behavioural Efficiency: An Evaluation in the Field," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(3), pages 433-455, November.
    8. Hugo Bois, 2016. "A new behavioral framework to analyze preference construction and decision processes within the modal choice," Working Papers 1608, Chaire Economie du climat.
    9. Lagerkvist, Carl Johan & Hess, Sebastian, 2014. "Consumer acceptance of an EU/non-EU label of origin of beef: an analysis of attribute attendance in a discrete choice experiment," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182744, European Association of Agricultural Economists.
    10. David Hensher & Andrew Collins & William Greene, 2013. "Accounting for attribute non-attendance and common-metric aggregation in a probabilistic decision process mixed multinomial logit model: a warning on potential confounding," Transportation, Springer, vol. 40(5), pages 1003-1020, September.
    11. Caputo, Vincenzina & Loo, Ellen J. Van & Scarpa, Riccardo & Nayga, Rodolfo M. Jr & Verbeke, Wim, 2014. "“Using Experiments to Address Attribute Non-attendance in Consumer Food Choices”," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 177173, Agricultural and Applied Economics Association.
    12. repec:eee:ijrema:v:33:y:2016:i:3:p:557-577 is not listed on IDEAS
    13. Luchini, S. & Watson, V., 2014. "Are choice experiments reliable? Evidence from the lab," Economics Letters, Elsevier, vol. 124(1), pages 9-13.
    14. David Hensher & John Rose & William Greene, 2012. "Inferring attribute non-attendance from stated choice data: implications for willingness to pay estimates and a warning for stated choice experiment design," Transportation, Springer, vol. 39(2), pages 235-245, March.
    15. Völker, Marc & Lienhoop, Nele, 2016. "Exploring group dynamics in deliberative choice experiments," Ecological Economics, Elsevier, vol. 123(C), pages 57-67.
    16. Jones, Michael S. & House, Lisa A. & Gao, Zhifeng, 2015. "Attribute Non-Attendance and Satisficing Behavior in Online Choice Experiments," 144th Seminar, February 9-13, 2015, Innsbruck-Igls, Austria 206252, European Association of Agricultural Economists.
    17. David Hensher, 2014. "Attribute processing as a behavioural strategy in choice making," Chapters,in: Handbook of Choice Modelling, chapter 12, pages 268-289 Edward Elgar Publishing.
    18. Krucien, Nicolas & Ryan, Mandy & Hermens, Frouke, 2017. "Visual attention in multi-attributes choices: What can eye-tracking tell us?," Journal of Economic Behavior & Organization, Elsevier, vol. 135(C), pages 251-267.
    19. Weller, Priska & Oehlmann, Malte & Mariel, Petr & Meyerhoff, Jürgen, 2014. "Stated and inferred attribute non-attendance in a design of designs approach," Journal of choice modelling, Elsevier, vol. 11(C), pages 43-56.

    More about this item

    Keywords

    discrete choice; attribute attendance;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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