Hurdle and Latent Class Approaches to Serial Non-Participation in Choice Models

Burton, Michael; Rigby, Dan

doi:10.1007/s10640-008-9225-9

Cited by 40 publications

(20 citation statements)

References 18 publications

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“…While the first reason would imply that an observed choice of the opt-out alternative reflects a true preference for this alternative, any of the last three reasons would imply that the choice is biased. In the light of this, and the fact that the OOR treatment in our case actually results in slightly fewer protest zero bidders as well as fewer serial opt-outers, the suspicion of 13 Exclusion is an often used way of dealing with serial opt-outers (Alfnes et al 2006;Burton and Rigby 2009). This approach has been criticized by von Haefen et al (2005) and Lancsar and Louviere (2006) in part for assuming seperability.…”

Section: Response Rates and Respondent Demographicsmentioning

confidence: 72%

“…This approach has been criticized by von Haefen et al (2005) and Lancsar and Louviere (2006) in part for assuming seperability. However, Burton and Rigby (2009) find that accounting for serial opt-outers rather than simply excluding them only leads to minor changes, and they conclude that relatively little is lost in taking the conventional approach in terms of excluding serial opt-outers.…”

Section: Response Rates and Respondent Demographicsmentioning

confidence: 99%

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Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys

Ladenburg¹,

Olsen

2014

Resource and Energy Economics

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Abstract:Hypothetical bias remains a major problem when valuing non-market goods with stated preference methods. Originally developed for Contingent Valuation studies, Cheap Talk has been found to effectively reduce hypothetical bias in some applications, though empirical results are ambiguous. We discuss reasons why Cheap Talk may fail to effectively remove hypothetical bias, especially in Choice Experiments. In this light, we suggest augmenting Cheap Talk in Choice Experiments with a so-called Opt-Out Reminder. Prior to each single choice set, the Opt-Out Reminder explicitly instructs respondents to choose the opt-out alternative if they find the experimentally designed alternatives too expensive. In an empirical Choice Experiment survey we find the Opt-Out Reminder to significantly reduce total WTP and to some extent also marginal WTP beyond the capability of the Cheap Talk applied without the Opt-Out Reminder. This suggests that rather than merely adopting the Cheap Talk practice directly from Contingent Valuation, it should be adapted to fit the potentially different decision processes and repeated choices structure of the Choice Experiment format. Our results further suggest that augmenting Cheap Talk with a dynamic Opt-Out Reminder can be an effective and promising improvement in the ongoing effort to remedy the particular types of hypothetical bias that potentially continue to invalidate Choice Experiment surveys.

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Section: Response Rates and Respondent Demographicsmentioning

confidence: 72%

Section: Response Rates and Respondent Demographicsmentioning

confidence: 99%

Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys

Ladenburg¹,

Olsen

2014

Resource and Energy Economics

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show abstract

“…This potential confounding may lead to a misinterpretation of the insignificant parameter estimate as non-attendance when it could be related to low or insignificant preferences. A commonly used method in the literature is to impose a parameter restriction to account for non-attendance of an attribute in the latent class model (see for instance Burton and Rigby 2009;Scarpa et al 2009;Campbell et al 2011;Lagarde 2013). To investigate this issue further we re-estimate the latent class models of Table 11 with the parameters for the money and work attributes constrained to be zero for the MAP and WAP models respectively.…”

Section: Latent Class Analysismentioning

confidence: 99%

Discrete Choice Experiments in Developing Countries: Willingness to Pay Versus Willingness to Work

Gibson

Rigby

Polya

et al. 2015

Environ Resource Econ

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A concern when conducting stated preference valuation studies in rural developing or very low income contexts is the use of monetary willingness to pay (WTP) estimates. In circumstances where cash incomes are extremely low, a significant proportion of the population are not engaged in waged labour and the exchange of goods or services is augmented through barter or work exchange, the role of money is likely to be different from that within an urban developed setting. As such, ability to pay using money may be impaired and downwardly biased when compared with other mediums of exchange. In recognition of this several studies have used hypothetical labour contributions as payment vehicles and a common finding is that households are more often willing to contribute labour than they are money. In this paper we present the results of a split sample DCE using money and labour contributions as payment vehicles for improved drinking water quality in Kandal Province, Cambodia. We find little differences between the payment vehicles in terms of attribute non-attendance, marginal utilities of attributes or derived welfare values. We argue that this provides support for the use of WTP in rural developing areas where there are functioning labour markets.

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“…In this paper, we want to explore how citizens value these public goods, the extent to which there is heterogeneity in respondents' preferences for non-market values of farmland, and whether that heterogeneity can be explained by observable characteristics. It is common that preferences for certain goods or services vary across respondents, and the consideration of heterogeneity in individuals' preferences for goods and services is taken as one of the most significant areas of research within choice experiments, as it can generate an unbiased result compared to a constrained version that assumes homogeneity throughout the population [3][4][5].…”

Section: Introductionmentioning

confidence: 99%

Exploring Heterogeneous Preference for Farmland Non-market Values in Wuhan, Central China

et al. 2015

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Abstract:The research question for this study is estimating the public's willingness to pay for the public goods generated by farmland, and exploring respondents' heterogeneity in their preferences for these goods. The approach used is a choice experiment, using respondents from the city of Wuhan, China. Six attributes representing public good values (farmland area, farmland fertility, water quality, air quality, species richness, and recreational value) and the level of private cost are selected in this study. A heteroscedastic conditional logit model is used to analyze the respondents' willingness to pay for improvements in these public goods, accounting for systematic heterogeneity in public preferences. The results show the public are willing to pay to preserve the non-market values generated by farmland, with air quality valued most and followed by farmland fertility, farmland area, water quality, species richness and recreational value. In addition, respondents with higher income, and who are aware of the non-market values of farmland and have a willingness to pay for it have a smaller error variance, i.e., these respondents are more consistent in their choices. This study may help decision makers improving more differentiated farmland protection policies.

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Hurdle and Latent Class Approaches to Serial Non-Participation in Choice Models

Abstract: Choice experiments, Non-participation, Hurdle, Latent class, GM,

Cited by 40 publications

References 18 publications

Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys

Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys

Discrete Choice Experiments in Developing Countries: Willingness to Pay Versus Willingness to Work

Exploring Heterogeneous Preference for Farmland Non-market Values in Wuhan, Central China

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