Stated and inferred attribute attendance models: A comparison with environmental choice experiments

There is increasing evidence that respondents to choice experiment surveys do not consider all attributes presented in the choice sets. Not accounting for this ‘attribute non-attendance’ leads to biased parameter estimates, and hence biased estimates of willingness to pay. Various methods exist to account for non-attendance in the analysis of choice data, with limited agreement as to which method is ‘best’. This paper compares modelling approaches that can account for non-attendance, based on stated and inferred attribute non-attendance. Respondents' stated non-attendance is incorporated in the specification of multinomial and mixed logit models. Inference of non-attendance is based on equality constrained latent class models. Results show that model fit is significantly improved when attribute non-attendance is taken into account, and that welfare estimates are lower when incorporating non-attendance. The inference based on equality constrained latent class models provides the best model fit. There is little concordance between stated and inferred non-attendance, suggesting that respondents may not answer attendance statements truthfully.

[1]  Michiel C.J. Bliemer,et al.  Design considerations of a choice experiment to estimate likely participation by north Australian pastoralists in contractual biodiversity conservation , 2014 .

[2]  David A. Hensher,et al.  The Mixed Logit Model: the State of Practice and Warnings for the Unwary , 2001 .

[3]  David A. Hensher,et al.  Making use of respondent reported processing information to understand attribute importance: a latent variable scaling approach , 2013 .

[4]  Raffaele Zanoli,et al.  Inferred and Stated Attribute Non‐Attendance in Food Choice Experiments , 2013 .

[5]  Dan Rigby,et al.  Skew and attribute non-attendance within the bayesian mixed logit model , 2011 .

[6]  D. Hensher How do respondents process stated choice experiments? Attribute consideration under varying information load , 2006 .

[7]  Mandy Ryan,et al.  Using discrete choice experiments to derive welfare estimates for the provision of elective surgery: Implications of discontinuous preferences , 2002 .

[8]  J. Louviere,et al.  Modelling the effects of stated attribute non-attendance on its inference: an application to visitors benefits from the alpine grazing commons , 2011 .

[9]  I. Krinsky,et al.  On Approximating the Statistical Properties of Elasticities , 1986 .

[10]  Danny Campbell,et al.  Attribute processing in environmental choice analysis: implications for willingness to pay , 2010 .

[11]  David A. Hensher,et al.  Using Conditioning on Observed Choices to Retrieve Individual-Specific Attribute Processing Strategies , 2010 .

[12]  Icek Ajzen,et al.  Explaining the Discrepancy between Intentions and Actions: The Case of Hypothetical Bias in Contingent Valuation , 2004, Personality & social psychology bulletin.

[13]  Riccardo Scarpa,et al.  Incorporating Discontinuous Preferences into the Analysis of Discrete Choice Experiments , 2008 .

[14]  Fredrik Carlsson,et al.  Dealing with Ignored Attributes in Choice Experiments on Valuation of Sweden’s Environmental Quality Objectives , 2010 .

[15]  M. Conner,et al.  Efficacy of the Theory of Planned Behaviour: a meta-analytic review. , 2001, The British journal of social psychology.

[16]  J. Martin-Ortega,et al.  Inferring Attribute Non-attendance from Discrete Choice Experiments: Implications for Benefit Transfer , 2015 .

[17]  Malte Oehlmann,et al.  Stated and inferred attribute non-attendance in a design of designs approach , 2014 .

[18]  David A. Hensher,et al.  Modelling attribute non-attendance in choice experiments for rural landscape valuation , 2009 .

[19]  David A. Hensher,et al.  Heteroscedastic control for random coefficients and error components in mixed logit , 2007 .

[20]  David A. Hensher,et al.  Interrogation of responses to stated choice experiments: Is there sense in what respondents tell us? , 2011 .

[21]  Arne Risa Hole,et al.  A discrete choice model with endogenous attribute attendance , 2011 .

[22]  Carsten Lynge Jensen,et al.  Attending to the Reasons for Attribute Non-attendance in Choice Experiments , 2011 .

[23]  J. Bennett,et al.  Using Choice Experiments to Value Catchment and Estuary Health in Tasmania with Individual Preference Heterogeneity , 2011 .

[24]  David A. Hensher,et al.  Monitoring Choice Task Attribute Attendance in Nonmarket Valuation of Multiple Park Management Services: Does It Matter? , 2010, Land Economics.

[25]  R. Hobbs,et al.  A sustainable agricultural landscape for Australia: A review of interlacing carbon sequestration, biodiversity and salinity management in agroforestry systems , 2012 .

[26]  Dan Rigby,et al.  Modeling Disinterest and Dislike: A Bounded Bayesian Mixed Logit Model of the UK Market for GM Food , 2006 .

[27]  David A. Hensher,et al.  The implications on willingness to pay of respondents ignoring specific attributes , 2004 .

[28]  W. Verbeke,et al.  Using Experiments to Address Attribute Non-attendance in Consumer Food Choices , 2014 .

[29]  Michael Lockwood,et al.  Non‐Compensatory Preference Structures in Non‐Market Valuation of Natural Area Policy , 1996 .

[30]  K. Sælensminde,et al.  The Impact of Choice Inconsistencies in Stated Choice Studies , 2002 .

[31]  John M. Rose,et al.  Inferring attribute non-attendance from stated choice data: implications for willingness to pay estimates and a warning for stated choice experiment design , 2012 .

[32]  John M. Rose,et al.  Recovering costs through price and service differentiation: accounting for exogenous information on attribute processing strategies in airline choice , 2005 .

[33]  John M. Rose,et al.  Simplifying choice through attribute preservation or non-attendance: Implications for willingness to pay , 2009 .

[34]  Emily Lancsar,et al.  Deleting 'irrational' responses from discrete choice experiments: a case of investigating or imposing preferences? , 2006, Health economics.

[35]  D. McFadden,et al.  MIXED MNL MODELS FOR DISCRETE RESPONSE , 2000 .