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Eliciting consumers preferences using stated preference discrete choice models: Contingent ranking versus choice experiment

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  • Anna Merino

Abstract

The aim of this paper is twofold: firstly, to carry out a theoretical review of the most recent stated preference techniques used for eliciting consumers preferences and, secondly, to compare the empirical results of two dierent stated preference discrete choice approaches. They dier in the measurement scale for the dependent variable and, therefore, in the estimation method, despite both using a multinomial logit. One of the approaches uses a complete ranking of full-profiles (contingent ranking), that is, individuals must rank a set of alternatives from the most to the least preferred, and the other uses a first-choice rule in which individuals must select the most preferred option from a choice set (choice experiment). From the results we realize how important the measurement scale for the dependent variable becomes and, to what extent, procedure invariance is satisfied.

Suggested Citation

  • Anna Merino, 2003. "Eliciting consumers preferences using stated preference discrete choice models: Contingent ranking versus choice experiment," Working Papers, Research Center on Health and Economics 705, Department of Economics and Business, Universitat Pompeu Fabra.
  • Handle: RePEc:upf:upfses:705
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    References listed on IDEAS

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    1. Hanley, Nick & Mourato, Susana & Wright, Robert E, 2001. " Choice Modelling Approaches: A Superior Alternative for Environmental Valuation?," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 435-462, July.
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    5. Anna Merino, 2003. "Demand for pharmaceutical drugs: A choice modelling experiment," Working Papers, Research Center on Health and Economics 704, Department of Economics and Business, Universitat Pompeu Fabra.
    6. Anna Merino, 2003. "Demand for pharmaceutical drugs: A choice modelling experiment," Economics Working Papers 704, Department of Economics and Business, Universitat Pompeu Fabra.
    7. Harry Telser & Peter Zweifel, 2002. "Measuring willingness-to-pay for risk reduction: an application of conjoint analysis," Health Economics, John Wiley & Sons, Ltd., vol. 11(2), pages 129-139.
    8. Alan Diener & Bernie O'Brien & Amiram Gafni, 1998. "Health care contingent valuation studies: a review and classification of the literature," Health Economics, John Wiley & Sons, Ltd., vol. 7(4), pages 313-326.
    9. Beggs, S. & Cardell, S. & Hausman, J., 1981. "Assessing the potential demand for electric cars," Journal of Econometrics, Elsevier, vol. 17(1), pages 1-19, September.
    10. Jane Hall & Patricia Kenny & Madeleine King & Jordan Louviere & Rosalie Viney & Angela Yeoh, 2002. "Using stated preference discrete choice modelling to evaluate the introduction of varicella vaccination," Health Economics, John Wiley & Sons, Ltd., vol. 11(5), pages 457-465.
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    Citations

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    Cited by:

    1. Ilja Neustadt & Peter Zweifel, 2010. "Is the Welfare State Sustainable? Experimental Evidence on Citizens’ Preferences for Redistribution," SOI - Working Papers 1003, Socioeconomic Institute - University of Zurich.
    2. repec:bla:ijhplm:v:32:y:2017:i:1:p:e47-e71 is not listed on IDEAS
    3. Pfarr Christian & Ulrich Volker, 2011. "Discrete-Choice-Experimente zur Ermittlung der Präferenzen für Umverteilung," Review of Economics, De Gruyter, vol. 62(3), pages 232-262, December.
    4. Garima Taneja & Barun Deb Pal & Pramod K. Joshi & Pramod K. Aggarwal & N. K. Tyagi, 2014. "Farmers’ Preferences for Climate-Smart Agriculture: An Assessment in the Indo-Gangetic Plain," Working Papers id:5806, eSocialSciences.
    5. Kennedy Otieno, Pambo, 2013. "Analysis of Consumer Awareness and Preferences for Fortified Sugar in Kenya," Research Theses 243455, Collaborative Masters Program in Agricultural and Applied Economics.
    6. repec:gam:jsusta:v:9:y:2017:i:10:p:1773-:d:113781 is not listed on IDEAS
    7. repec:eee:transa:v:105:y:2017:i:c:p:210-218 is not listed on IDEAS
    8. Carolina González & Nancy Johnson & Matin Qaim, 2009. "Consumer Acceptance of Second-Generation GM Foods: The Case of Biofortified Cassava in the North-east of Brazil," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 604-624.

    More about this item

    Keywords

    Stated preferences; contingent ranking; choice experiment;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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