Hurdle and Latent Class Approaches to Serial Non-Participation in Choice Models |
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Authors: | Mike Burton Dan Rigby |
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Institution: | (1) University of Western Australia, Perth, WA, Australia;(2) Department of Economics, Manchester University, Manchester, M13 9PL, UK |
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Abstract: | In repeated choice modelling studies, it is often the case that individuals always select the status quo option. Although
this pattern may reflect considered choices, they may also be the result of alternative decisions about whether to participate
in the choice process at all. Alternative methods of dealing with this behaviour, each with associated implications for estimates
of economic values, are presented. In particular we consider the alternative strategies of excluding such individuals from
the data, using hurdle models to explicitly model this group, and propose the use of latent class models to endogenously allow
for different preference structures. An advantage of the latent class approach is that the form of the non-participation need
not be defined in advance. These approaches are considered using UK choice experiment data on food choices where the attributes
include genetic modification of food. The latent class approach reveals the presence of two forms of non-participation in
the data.
This paper draws work commissioned by UK Department of Environment Food and Rural Affairs (DEFRA). The views presented in
this paper are those of the authors alone and should not be regarded as those of DEFRA or of individuals within DEFRA. |
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Keywords: | Choice experiments Non-participation Hurdle Latent class GM |
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