“…The existing approach to analyzing rank-ordered data usually exploits extensions and variants of the exploded logit (Chapman and Staelin, 1982), both within (Chang, Lusk and Norwood, 2009;Scarpa et al, 2011;Resano, Sanjuan and Albisu, 2012;Othman and Rahajeng, 2013;Varela et al, 2014) and outside (Fok, Paap and Van Dijk, 2012;Yoo and Doiron, 2013) the environmental valuation literature. Our strategy adds to the empirical practitioner's toolkit an approach building on the nested rank-ordered logit of Dagsvik and Liu (2009) that allows for more plausible substitution patterns. Unlike the exploded logit, the nested rank-ordered logit does not exhibit the independence-of-irrelevant-alternatives property (even without incorporating a mixture specification).…”