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Disentangling the Influence of Knowledge on Processing Strategies in Choice Modelling

Author

Listed:
  • Erlend Dancke Sandorf

    (The Norwegian College of Fishery Science, Faculty of Biosciences, Fisheries and Economics, University of Tromsø – The Arctic University of Norway)

  • Danny Campbell

    (Economics Division, University of Stirling, Scotland)

  • Nick Hanley

    (School of Geography and Sustainable Development, University of St. Andrews)

Abstract

This paper seeks to disentangle the effect of knowledge on processing strategies using data from a discrete choice experiment on cold-water corals in Norway. Cold-water corals are a deep-sea ecosystem for which we have limited scientific knowledge and for which public awareness is low, and consequently is likely to be an unfamiliar good to many members of the public. One simplifying strategy often employed by respondents in a choice experiment is to simply ignore some of the attributes, i.e. attribute non-attendance. After the initial presentation of the good, before answering the choice cards, the respondents were given a quiz over the material covered in the presentation. This provides us with an ex ante measure of their knowledge. We use a combination of discrete and continuous mixture models to disentangle the effects of variations in knowledge about the good. We use a respondent’s quiz score as covariates in the probability function of attending to an attribute. Our results show that knowledge, as measured by the quiz score, has a significant effect on the probability of attending to the attribute for three out of four attributes. This has direct implication for practitioners in that proper information may help avoid the use of simplifying strategies.

Suggested Citation

  • Erlend Dancke Sandorf & Danny Campbell & Nick Hanley, 2015. "Disentangling the Influence of Knowledge on Processing Strategies in Choice Modelling," Discussion Papers in Environment and Development Economics 2015-02, University of St. Andrews, School of Geography and Sustainable Development.
  • Handle: RePEc:sss:wpaper:2015-02
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    References listed on IDEAS

    as
    1. Hess, S. & Bierlaire, Michel & Polak, J.W., 2007. "A systematic comparison of continuous and discrete mixture models," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 37, pages 35-61.
    2. Kosenius, Anna-Kaisa, 2013. "Preference discontinuity in choice experiment: Determinants and implications," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 138-145.
    3. Campbell, Danny & Doherty, Edel & Hynes, Stephen & van Rensburg, Tom M., 2010. "Combining discrete and continuous mixing approaches to accommodate heterogeneity in price sensitivities in environmental choice analysis," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 91723, Agricultural Economics Society.
    4. Caussade, Sebastián & Ortúzar, Juan de Dios & Rizzi, Luis I. & Hensher, David A., 2005. "Assessing the influence of design dimensions on stated choice experiment estimates," Transportation Research Part B: Methodological, Elsevier, vol. 39(7), pages 621-640, August.
    5. Alvarez-Farizo, Begona & Hanley, Nick & Barberan, Ramon & Lazaro, Angelina, 2007. "Choice modeling at the "market stall": Individual versus collective interest in environmental valuation," Ecological Economics, Elsevier, vol. 60(4), pages 743-751, February.
    6. Macmillan, Douglas C. & Philip, Lorna & Hanley, Nick & Alvarez-Farizo, Begona, 2002. "Valuing the non-market benefits of wild goose conservation: a comparison of interview and group based approaches," Ecological Economics, Elsevier, vol. 43(1), pages 49-59, November.
    7. 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.
    8. LaRiviere, Jacob & Czajkowski, Mikołaj & Hanley, Nick & Aanesen, Margrethe & Falk-Petersen, Jannike & Tinch, Dugald, 2014. "The value of familiarity: Effects of knowledge and objective signals on willingness to pay for a public good," Journal of Environmental Economics and Management, Elsevier, vol. 68(2), pages 376-389.
    9. Aanesen, Margrethe & Armstrong, Claire & Czajkowski, Mikołaj & Falk-Petersen, Jannike & Hanley, Nick & Navrud, Ståle, 2015. "Willingness to pay for unfamiliar public goods: Preserving cold-water coral in Norway," Ecological Economics, Elsevier, vol. 112(C), pages 53-67.
    10. David Hensher & John Rose & William Greene, 2005. "The implications on willingness to pay of respondents ignoring specific attributes," Transportation, Springer, vol. 32(3), pages 203-222, May.
    11. Andrew Daly & Stephane Hess & Kenneth Train, 2012. "Assuring finite moments for willingness to pay in random coefficient models," Transportation, Springer, vol. 39(1), pages 19-31, January.
    12. 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.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Attribute Non-Attendance; Discrete Choice Experiment; Knowledge; Attribute Processing Strategies; Cold water coral; ecosystem services;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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