Recreation Nonparticipation as Choice Behavior Rather Than Statistical Outcome

In recreation demand models nonparticipation is usually estimated as the probability mass on zero demand given a positive level of expected demand and a discrete distribution of demand outcomes. Researchers have attempted to improve predictions of nonparticipation by modifying the parameters of the demand distribution. This study departs from previous approaches by explicitly incorporating nonparticipation into the behavioral model. The choice to participate is described by a distribution of preferences combined with a choke price on individual demands to distinguish participants from nonparticipants. The model is found to accurately predict nonparticipation and the size of the user group.     

Managing groundwater in a mining region: an opportunity to compare best‐worst and referendum data

In nonmarket valuation, practitioners must choose a format for the valuation questions. A common approach in discrete choice experiments is the ‘pick‐one’ format, often with two alternative policy proposals and a status quo from which the respondent selects. Other proposed formats, include best‐worst elicitation, where respondents are asked to indicate their most and least favoured alternative from a set. Although best‐worst formats can offer efficiency in data collection, they can also lead to responses that are difficult to reconcile with neoclassical welfare estimation. The current article explores methodological issues surrounding the use of pick‐one versus best‐worst data for nonmarket valuation, focusing on framing and status quo effects that may occur within three‐alternative discrete choice experiments. We illustrate these issues using a case study of surplus groundwater use from Western Australian mining. Results identify concerns that may render best‐worst data unsuitable for welfare estimation, including a prevalence of serial choices in which the status quo is universally chosen as the worst alternative, rendering part of the choice process deterministic. Asymmetry of preferences and serial choices can be obscured when models are estimated using ‘naively’ pooled best‐worst data. Results suggest that caution is warranted when using best‐worst data for valuation, even when pooled results appear satisfactory.     

Comparing Serial,and Choice Task Stated and Inferred Attribute Non‐Attendance Methods in Food Choice Experiments

A number of choice experiment (CE) studies have shown that survey respondents employ heuristics such as attribute non‐attendance (ANA) while evaluating food products. This paper addresses a set of related methodological questions using empirical consumer data from a CE on poultry meat with sustainability labels. First, it assesses whether there are differences in terms of marginal willingness to pay estimates between the two most common ways of collecting stated ANA (serial and choice task level). Second, it validates the self‐reported ANA behaviour across both approaches. Third, it explores the concordance of stated methods with that of the inferred method. Results show that WTP estimates from serial‐level data differ from those from choice task‐level data. Also, self‐reported measures on choice task ANA are found to be more congruent with model estimates than those for serial ANA, as well as with inferred ANA.     

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.     

Linking Consumers’ Food Choice Motives to their Preferences for Insect‐based Food Products: An Application of Integrated Choice and Latent Variable Model in an African Context

Consumers’ attitudes, perceptions, personalities and motives play important roles in shaping their food choices. These factors are not fully observed by analysts, so they should be treated as latent variables. A number of economic studies treat such variables as direct measures of consumers’ food choice behaviour, even though this might introduce measurement error and endogeneity bias. We investigate the latent link between consumers’ preferences and food choice motives (FCMs) in an African context. We use an integrated choice and latent variable (ICLV) model specification for data analysis to recognise the latent nature of the FCMs and address the measurement and bias problems. The data originate from an incentivised discrete choice experiment conducted in Kenya to elicit consumers’ preferences for insect‐based foods. Our findings show that consumers’ preferences and choices are influenced by their latent motivational orientation. The results illustrate the benefit of the ICLV approach in accounting for consumers’ latent preference constructs in food choice and valuation research.     

Participation, Trip Frequency and Site Choice: A Multinomial-Poisson Hurdle Model of Recreation Demand

Data used in recreation demand modeling are characterized by the facts that trip frequencies are non-negative integers and that consumers are often faced with alternative destinations. This paper considers these features by estimating a multivariate recreation demand model that accounts for trip frequency and choice among alternative recreation sites using a mixed multinomial-Poisson hurdle distribution. The specification of the Poisson hurdle distribution at the aggregate level accounts for participation and trip frequency, and avoids the restrictive mean-variance property of the basic Poisson model. The model is estimated using data from Bighorn sheep hunters in Alberta, Canada. Simulation results suggest that changing price and quality variables cause substitution among sites. The welfare implications of changes in these variables are also examined.     

An Empirical Investigation into the Excessive-Choice Effect

Recent marketing and psychological studies have shown that more choice does not always benefit consumers. This excessive-choice effect (ECE) is examined empirically using food items in four experiments. The first experiment investigates whether people would voluntarily reduce their choice-set size. The second seeks to replicate previous experimental results. The third and fourth experiments employ nonhypothetical Becker-DeGroot-Marschak (BDM) soda auctions and hypothetical ground beef choice experiments to further detect the prevalence of the ECE in alternative settings and explore the role of personality in decision tasks. Results suggest the ECE exists, but is less prevalent than previous studies suggest.     

Managing the energy trilemma of reliability,affordability and renewables: Assessing consumer demands with discrete choice experiments

In response to the looming climate crisis, many countries are adopting technologies to reduce the accumulation of greenhouse gases. However, national energy policies are often multiobjective and resolution deeply divisive. The result is a policy trilemma between the energy mix and the trade-offs with other policy objectives, including cost and reliability. Utilising a discrete choice experiment (DCE), the objective of this study is to explore Australian household preferences for alternative electricity contracts containing features reflecting changes in future energy policy. The first set of features include investments in renewable generation and community-based energy storage. The second set of features reflect demand-side management policies, including installing smart meters and consumption limits being imposed on households during peak demand. Two versions of the DCE were developed to obtain both willingness to pay and willingness to accept estimates for the same features. In line with the literature, differences in the two sets of estimates were observed, with the willingness to accept estimates being statistically larger for some features. These dollar value measures can be used to support public policy decision-making – the choice of which depending on the context of the policy problem being considered.     

A Belief-Preference Model of Choice for Experience and Credence Goods

We develop a methodology addressing the issue of confounded beliefs and preferences in models of discrete choice. First, we formalise the theoretical framework and logical underpinnings of a belief-preference model of choice for experience and credence goods, where subjective beliefs relate to uncertain product quality. We then present the experimental procedure within the context of an online choice experiment studying consumer food preferences. The empirical strategy leverages information from a quality sorting task to identify and estimate beliefs, while choice data are used to recover preferences. By conditioning product choices on predicted quality perceptions, the issue of endogenous beliefs is resolved.     

Spatial and Scope Effects: Valuations of Coastal Management Practices

We explore how values for environmental management in the Kimberley region of Australia respond to changes in spatial scale and attribute scope. A discrete choice experiment was conducted that included the impacts of management on marine no‐take areas, Aboriginal rangers, recreational facilities, and coastal development. A split sample single‐site design was used to estimate values for the Kimberley region as a whole, and for two separate smaller sub‐regions, allowing us to test for spatial preference heterogeneity. Management outcomes for different regions were displayed on a map to show respondents explicitly where outcomes would occur. We show that willingness to pay results are similar between the two smaller sub‐regions, and that willingness to pay for the attributes increased when management occurred at the larger geographical scale. However, respondents were somewhat insensitive to changes in the scope of the two cardinal attributes: area of no‐take and number of rangers. We discuss the implications of this spatial and scope insensitivity for choice experiment research.     

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.     

Modeling discrete choices with augmented perception hurdles

Through creating latent perception hurdles associated with each attribute considered in a stated conjoint experiment, this article describes a model that augments the conventional approach by utilizing the importance ratings provided by respondents prior to the discrete choice stage. The resulting perception hurdle logit (PHL) model has both advantages and disadvantages compared to the conditional logit (CL) and mixed logit models. Although the proposed model may not have the best within‐sample fit, it outperforms the other two models in predicting choices in a hold out sample. In addition, the proposed model is also used to reveal that depending on their own characteristics and the process of the survey, respondents may employ an array of different decision strategies.     

A within‐sample investigation of test–retest reliability in choice experiment surveys with real economic incentives

In this paper, we investigate the level of agreement between respondents' choices in identical choice sets in a test–retest choice experiment for a market good with real economic incentives, thus investigating whether the incentivised CE method can be reliable and stable over time. Besides comparing choices, we also test for differences in preferences and error variance when a sample of respondents is given the exact same questionnaire twice, with a time lag of 2 weeks in between. Finally, we examine potential reasons and covariates explaining the level of agreement in choices across the 2 weeks. Across four different tests, we find very good agreement between the two choice experiments – both with respect to overall choices and with respect to preferences. Furthermore, error variances do not differ significantly between the two surveys. The results also show that the larger the utility difference in a choice task, the larger the probability that the respondent will choose the same alternative in the retest. Moreover, the results show that the longer time respondents take to answer the 12 choice sets in the retest, the lower the probability that the respondent will choose the same alternatives in the retest as they did in the test.     

Strategies for integrating farmers into modern vegetable supply chains in Vietnam: farmer attitudes and willingness to accept

In Vietnam, the development of so‐called ‘modern’ vegetable supply chains is receiving considerable interest amongst researchers and governments. This interest partly stems from the view that enhancements in food safety can be achieved if farmers are willing to adopt supply chains that are often associated with ‘western’ forms of retailing. Our study investigates farmers’ willingness to change to two ‘modern’ alternatives – a supply model based on cooperatives and another based on investors facilitating the change. Using discrete choice data drawn from 412 farmers, mixed logit models in willingness to pay space are developed that reveal the relative importance of different drivers of change. The paper offers insights that can inform governments about the incentives required to bring about change. In addition, the paper illustrates the novel application of a choice experiment to enumerating the perceived costs of changes in vegetable supply chains.     

Mixed integration of individual background,attitudes and tastes for landscape management

This paper discusses the design and analysis of a choice experiment regarding preferences for possible transformations of a mountain landscape traditionally used for grazing. Visual impacts related to changing a mountain landscape associated with a new ski resort development are evaluated versus an option with less environmental impact, such as a health spa or “no development”. A multi-level latent class framework is applied to simultaneously obtain those groups of people who choose similarly and are grouped locally, but are also defined by their location, assuming that their choices are representative of what they like and would choose. Groups from the mountains are classified into one specific grand class. Some individuals who live in urban areas have attitudes and beliefs similar to those who live in the mountains, and they also are classified into that same grand class. The model also identifies seven lower-level groups of individuals, each with their own structure of preferences.     

Scale and taste heterogeneity for forest biodiversity: Models of serial nonparticipation and their effects

Serial non-participation is a response behavior that is frequently found in stated choice experiments. One form of serial non-participation is that a varying number of respondents chooses always the zero-price or status quo alternative. The approaches used in the literature to deal with this problem vary from excluding those respondents to using applying latent class models to endogenously allow for different preference structures. However, latent class models also allow to assign respondents to a known class. In this paper we compare specifications of latent class models with and without restrictions. Additionally, we control for differences in the error variance across respondents by applying a scale-extended latent class model. The comparisons are designed to show whether respondents are allocated differently among classes and whether willingness to pay estimates are affected significantly. The data are from a choice experiment regarding management actions to enhance forest biodiversity. The data set is characterized by a high percentage of respondents who were not willing to pay; almost 50% of the respondents always chose the zero price alternative locating this sample rather at the top of the range of respondents who are not willing to pay.     

The Impact of Health Claims in Different Product Categories

Abstract

There has been little research about which combinations of health claims, food product categories, and nutrient enrichment labellings are most appealing to consumers. This paper tests whether specific product group differences exist for health claims and ingredient labellings based on the food additive Xanthohumol. To analyze preference heterogeneity, differences between consumers with a high, medium, or low preference for organic food products were considered. For data collection, an online-based discrete choice experiment was applied in Germany for the product categories milk, yoghurt, water, cola, and chocolate. The choice experiments were analyzed with multinomial and mixed logit models. Positive effects for the considered health claims that are based on the effect of the food additive Xanthohumol could be found for water, milk, and yoghurt. The comparison of the different organic consumer segments revealed that respondents with a medium preference for organic food products show the highest preference for the considered health claims.     

Valuing the Impacts of An Invasive Biological Control Agent: A Choice Experiment on the Asian Ladybird in France

Initially used as a biological control against aphids, the Asian ladybird has become highly invasive in many regions, including Europe. While biological control is usually considered as an environmentally‐friendly alternative to chemical pesticides in controlling pests in crops, there is growing concern that these environmental benefits could be outweighed by the negative consequences of the invasion. These include (i) biodiversity losses as populations of native ladybirds suffer from intraguild predation and competition for resources; (ii) human nuisance in houses, including risks of allergy and (iii) potential losses to wine‐growers. We provide an economic valuation of environmental and private characteristics affected by the Asian ladybird's invasion. We conduct a discrete choice experiment among a representative sample of the French population. Our results show that the consequences of the Asian ladybird's introduction do affect significantly the population's welfare. Among these, the impact on biodiversity through the threat on native species appears to be a significant concern.