Comparing results of ranking conjoint analyses,best–worst scaling and discrete choice experiments in a nonhypothetical context

This study assesses the comparability of discrete choice experiment (DCE), ranking conjoint analysis (RCA) and multiprofile best–worst scaling (BWS) in a nonhypothetical context in terms of estimated partworths, willingness to pay (WTP), response consistency and external validity. Overall, the results suggest that: (i) the conjoint analysis formats that were used in this study provide similar estimated WTP, but different estimated partworths and computed external validity; (ii) the inclusion of the full ranking information in the estimation of the parameters of interest affects the estimated partworths, but not the estimated WTP; and (iii) it is more appropriate to use multiprofile BWS over DCE and RCA because it has better predictive power of consumers’ preferences and provides estimated WTP comparable to those obtained in the others conjoint analysis formats. The BWS’ cognitive process could be considered clearness for participants implying significant increment of its predictive power.     

Food values and heterogeneous consumer responses to nanotechnology

Agricultural applications of nanotechnology are at a relatively early stage and little is known about consumer responses to the technology. Canadian consumer responses to food nanotechnology are examined through the lens of the Food Value Scale. Data from a survey of Canadian consumers are used to evaluate the relative importance of eleven food values to food purchase decisions. We find that taste, safety, nutrition, and price are among the most important food values to Canadians, however, consumers exhibit considerable heterogeneity with respect to the priority placed on these values. A discrete choice experiment (DCE) explores the effect of food values on choice behavior. The DCE is positioned as a sliced apple product with non-browning and antioxidant-enhanced features introduced through the use of nanocoating or a conventional coating method. Random parameters logit (RPL) and latent class models (LCM) confirm the existence of significant preference heterogeneity. The LCM identifies three classes of consumers: “supporters,” “doubters,” and “opponents” who differ in their reaction to nanotechnology and in the relative importance placed on food values such as naturalness, novelty, and convenience. The analysis shows that food values provide additional insights into consumers’ food choices and their attitudes toward novel food technologies.     

Outdoor recreation in various landscapes: Which site characteristics really matter?

This paper investigates the role played by different site characteristics in influencing people's choice of outdoor recreation destinations. Contrary to prior studies, our experiment accounts for a large diversity of eligible landscapes described using photomontages. We use a discrete choice experiment (DCE) proposing respondents to choose among hypothetical destinations described in terms of eight site characteristics. We study the trade-offs made by various profiles of respondents among those site characteristics, resulting in different destination choices. The DCE attributes are spatially explicit to represent recreational patterns in the form of site quality maps using Geographic Information Systems (GIS). We conclude by stressing implications of this research for tourism and land management policy-making in peri-urban environments. Interestingly, preferences for site characteristics vary significantly with the recreational activities that respondents engage in. Hikers and cyclists preferences should be particularly considered in future planning decisions.     

Probing the grounds: Developing a payment-by-results agri-environment scheme in Finland

Results-oriented approaches are widely regarded as an effective means to improving cost-effectiveness of agri-climate-environment schemes. We designed a hypothetical payment-by-results scheme for biodiversity conservation on environmental grasslands in Finland. The scheme would pay farmers a premium if the site contains a set number of indicator species, which were selected based on vascular plant surveys of the target habitat type. We presented the hypothetical scheme to 20 farmers and six experts (researchers, officials and advisors) in agricultural policy for their opinions on the payment-by-result approach generally and the hypothetical scheme specifically. The indicator species list proved suitable for identifying sites with high total species richness of vascular plants and also appeared feasible in the eyes of the farmers. Farmers were mostly positive about the approach and, mainly, thought their peers and society at large would receive it positively. The main concerns were about implementation, especially verifying the biodiversity results. People working for the national control body were the most critical and could not see how the hypothetical scheme could fit into the current institutionalised programme. Experience in other countries may provide solutions for overcoming such obstacles. The results are highly relevant for a discourse on social experimentation and cost-efficient delivery of public goods for public money.     

Effects of alternative elicitation formats in discrete choice experiments*

An elicitation format prevalently applied in discrete choice experiments (DCE) is to offer each respondent a sequence of choice tasks containing more than two choice options. However, empirical evidence indicates that repeated choice tasks influence choice outcomes through order effects. The study reported in this article employs a split sample approach based on field surveys to expand the research on effects of repeated‐binary DCE elicitation formats. A single‐binary elicitation format is used as the baseline. Our results indicate that choice outcomes may vary across the single‐binary and repeated‐binary elicitation formats. The choice between the two elicitation formats may imply a trade‐off between decreased choice precision in the single‐binary and order effects that may be explained by strategic misrepresentation of preferences, cost uncertainty effects and reference effects in the repeated‐binary elicitation format.     

How Closely Do Hypothetical Surveys and Laboratory Experiments Predict Field Behavior?

We compare the ability of three preference elicitation methods (hypothetical choices, nonhypothetical choices, and nonhypothetical rankings) and three discrete-choice econometric models (the multinomial logit [MNL], the independent availability logit [IAL], and the random parameter logit [RPL]) to predict actual retail shopping behavior in three different product categories (ground beef, wheat flour, and dishwashing liquid). Overall, we find a high level of external validity. Our specific results suggest that the nonhypothetical elicitation approaches, especially the nonhypothetical ranking method, outperformed the hypothetical choice experiment in predicting retail sales. We also find that the RPL can have superior predictive performance, but that the MNL predicts equally well in some circumstances.     

Consumer preferences for new technology: apples enriched with antioxidant coatings in Uzbekistan

Food markets in developing countries are experiencing an expansion of new functional products. Even though their market share is small, these food products are usually imported and post a higher price compared to local products. In this article, we investigate the consumer response toward new functional food products in Uzbekistan by focusing on the incorporation of apples enriched with antioxidant coating in the food market. We conduct consumer surveys with two different information treatments. We utilize a dichotomous‐choice contingent valuation methodology to estimate willingness to pay for this product and analyze factors that affect consumer choice. The results suggest that the average Uzbek respondent is willing to purchase functional apples with a 6% discount. The effect of information regarding the potential health benefits of antioxidants is positive and statistically significant. We compare the findings with a previous U.S. study of the same product and discuss how the delivery method provides an additional hurdle in the Uzbek market.     

Joint estimation using revealed and stated preference data: An application using a national forest

We combine contingent behaviour with travel cost data to estimate the change in the recreational use value of a National Forest due to quality and price changes. Instead of the usual improvement scenario, a hypothetical deterioration in the conditions of the forest due to a fire is considered. A dataset containing five observations for each respondent enabled the estimation of three models for which the number of scenarios differed. The results show that visitors are sensitive to price and quality changes and that in the forest fire scenario the intended number of trips would be reduced and that respondents would experience a welfare loss. Signs of inconsistency between preferences expressed by revealed and intended behaviour were found. This research also provides some indications that strategic bias affects answers to price changes.     

Farmers' Preferences and Social Capital Regarding Agri‐environmental Schemes to Protect Birds

The steady decline of birds living in cereal steppe lands is a worrying situation that the European Common Agricultural Policy is attempting to remedy through the application of agri‐environmental schemes (AES). We assess farmers' preferences towards these AES, which call for a number of environmental practices to protect birds. Using a face‐to‐face survey in farming communities in Aragón (Spain), and through the estimation of an Ordered Logit model (OL), we assess the ranking of AES attributes, and obtain their economic valuation according to the farmers' preferences. We find that social factors are also important in determining farmers' decisions. In particular, the importance of social trust and expectation of compliance by other neighbours, encourage farmers to sign up to AES. These and other results may be used to design more effective AES and help to solve this important biodiversity problem.     

MEASURING NON-USE VALUE OF ENVIRONMENTAL GOODS USING THE CONTINGENT VALUATION METHOD: PROBLEMS OF INFORMATION AND COGNITION AND THE APPLICATION OF COGNITIVE QUESTIONNAIRE DESIGN METHODS

Much interest now focuses on the use of the Contingent Valuation Method (CVM) to assess non-use value of environmental goods. The paper reviews recent literature and highlights particular problems of information provision and respondent knowledge, comprehension and cognition. These must be dealt with by economists in designing CVM surveys for eliciting non-use values. Cognitive Questionnaire Design Methods are presented which invoke concepts from psychology and tools from cognitive survey design (focus groups and verbal reports) to reduce a complex environmental good into a meaningful commodity that can be valued by respondents in a contingent market. This process is illustrated with examples from the authors' own research valuing alternative afforestation programmes.     

Willingness to pay for pST-treated pork

The progress in porcine somatotropin (pST) application justified an assessment of consumer acceptance of pST-treated pork. A survey of the Atlanta metropolitan area, USA, collected information about consumer attitudes toward lean pork produced with biotechno-logically developed pST. A qualitative dependent variable model was used to identify socioeconomic consumer characteristics influencing the willingness to pay for lean pork. The model was modified to account for the selectivity bias of the sample data. Results indicate that frequent pork consumers were willing to pay more for lean pork produced using pST in contrast to respondents who frequently ate beef, were older, and had relatively high income. Probabilities associated with the willingness to pay a specific premium were calculated. In general, the average respondent was willing to pay an additional 18¢ per kg of lean pork produced using pST.     

Going Beyond Impact Factors: A Survey‐based Journal Ranking by Agricultural Economists

A consistent and comprehensive ranking of journals relevant for agricultural economists cannot rely on impact factors for at least two major reasons: (i) the scientific database by Thomson Reuters, on which the standard impact factor is based, includes only a very limited number of relevant journals; (ii) the standard impact factor cannot be compared across research fields of different sizes. Survey‐based journal rankings may overcome these problems. We report on such a survey‐based ranking initiated by the Agricultural Economics Associations of Germany and Austria. Results of the ranking and a classification of journals, i.e. a rating, are provided for 160 selected journals. Scientific quality is assessed by an index based on the researchers’ perception of the quality standards of each journal and of the quality of its published articles. The survey‐based ranking allows a much more comprehensive and consistent ranking than the impact factor, as specific agricultural economics journals can be directly compared with neighbouring economic and interdisciplinary journals to which agricultural economists submit their work. The low impact factors of core agricultural economics journals are put into perspective. The scientific quality of the top agricultural economics journals is assessed as being rather high and above most of the relevant interdisciplinary journals from agricultural and food sciences that are typically characterised by higher impact factors. Agricultural economists’ perceptions on the scientific quality of the journals vary more across journals than perceptions of their relevance.     

Recruiting Agricultural Economics Graduate Students: Student Demand for Program Attributes

We use data from an Internet and traditional print mail survey to determine student demand for graduate program attributes. Results reveal that students value graduate program ranking more than stipend level, geographic location, or office/computer facilities. Higher ranked programs, as a whole, may be able to offer substantially lower stipends to students and remain competitive with lower ranked programs. Results also suggest that students might be willing to accept higher stipends or office space to attend lower ranked schools. The results may provide graduate program leaders with information to improve their recruitment efforts and/or potentially reduce graduate program expenditures.     

Do Community Supported Agriculture programmes encourage change to food lifestyle behaviours and health outcomes? New evidence from shareholders

Community Supported Agriculture (CSA) programmes have recently received attention for their potential to influence food lifestyle behaviours and health outcomes, though studies have mostly drawn from small samples (n?t-tests assess if paired means are statistically different, and multiple regressions of paired differences on socioeconomic factors, self-reported health, and years of CSA enrolment estimate the effect of respondent characteristics on behaviour change. The results strongly suggest that CSAs have the potential to positively impact shareholders’ food lifestyle behaviours and health outcomes, and that those reporting ‘poor health’ prior to CSA enrolment exhibited the most change overall. These results should be taken as an initial, yet promising, analysis of the impact of CSA participation on shareholder food lifestyle behaviours and health outcomes.     

Extrapolating experimental-auction results using a stated choice survey

During the last decade, experimental auctions and stated choice(SC) surveys have been widely used to study food demand. Thesemethods have complementary strengths and weaknesses. Experimentalauctions are limited by the availability of products and theuse of locally recruited participants, whereas SC surveys lackreal economic incentives. We use an SC survey to extrapolatethe results of an experimental auction to hypothetical productswith non-existing attribute combinations and to a representativesample of Norwegian consumers. The method is illustrated usingNorwegian consumers' preferences for country-of-origin and hormonestatus for beef.     

Do we know how much poverty there is?

This paper tests the sensitivity of poverty indexes to the choice of adult equivalence scales, assumptions about the existence of economies of scale in consumption, methods for treating missing and zero incomes, and different adjustments to handle income misreporting. The sensitivity analysis is applied to household survey data from 17 Latin American countries, which include 92% of the population in the region. By varying these parameters within reasonable boundaries we found that the proportion of poor could be said to be either 20% or 66%. Furthermore, the ranking of countries with respect to poverty is highly sensitive to the underlying choices for poverty measurement. We also perform sensitivity analysis to the use of different poverty lines and poverty indexes, which are issues that have been explored much more in the literature. Even after considering these elements, the most sensitive choice appears to be the method used to adjust for misreporting. These findings point, first, to the need to be explicit about the underlying assumptions behind poverty statistics, second, to the need to perform sensitivity analysis when estimating levels and trends in poverty, and third, to the importance of establishing a set of conventions that would be accepted as “best practices” in estimating poverty indexes.     

Understanding farmers’ preference for traits of chickens in rural Ethiopia

Traditional poultry production plays an irreplaceable role in the sustenance of livelihoods in rural Ethiopia. Ironically, however, much has been done to replace indigenous poultry breeds with exotic genetic resources regardless of the importance producers and consumers attach to attributes of the resources. This study aims at informing policy to establish effective indigenous poultry breeding and conservation programs. Discrete choice experiment (DCE) was employed to generate data. Designing of the DCE involved identification, definition, and measurement of attributes of adaptive, productive, and sociocultural importance considering the multiple functions of village chickens. Random parameters logit and the generalized multinomial logit (G‐MNL) models were used to estimate taste parameters. Economic values of traits of chickens were estimated using the utility in willingness‐to‐pay (WTP) space approach, based on G‐MNL model formulation. The results show that important traits of chickens to farmers are mothering ability, diseases resistance, and meat and eggs taste. These findings question the appropriateness, at least in the prevailing production system, of the Ethiopian national government's effort to improve productivity in village poultry by targeting specialized egg‐layer improved chickens. The findings also suggest that poultry breeding programs aiming to provide readily acceptable breed technology by farmers need to prioritize traits of adaptive importance, and mothering ability, instead of focusing on egg productivity only. The key implication is that the unique qualities of the indigenous poultry breeds need to be carefully identified and prioritized before resorting to those that proved to be successful in different production systems.     

Analyzing the Demand for New Value-Added Product: Case of Pure Blueberry Sweetener

Analyzing the demand for a new product that is not on the market presents challenges as agricultural producers search for potential value-added products and develop marketing strategies for these products. This study examines the market potential for a new pure blueberry sweetener in Kentucky. The results from a contingent choice survey indicate that the average respondent was not willing to pay a significantly positive amount for the product. However, a small group of respondents, who can be identified by their overall blueberry purchasing intentions and age, was willing to pay a price higher than the product's cost of production. Small and medium-size producers who are often limited by the financial and technical constraints associated with actual market trials of new products are likely to find that the type of marketing research described here is a particularly cost-effective method of getting information to assess market potential.     

Combining Revealed and Stated Preferences: Consistency Tests and Their Interpretations

This article models the recreation demand for Iowa wetlands, combining survey data on both actual usage patterns (i.e., revealed preferences (RPs)) and anticipated changes to those patterns under hypothetical increases in trip costs (i.e., stated preferences (SPs)). We formulate and test specific hypotheses concerning potential sources of bias in each approach and discuss what can be learned about the validity of the models from such tests.