Response Strategies and Learning in Discrete Choice Experiments
Date
2012
Authors
Scheufele, Gabriela
Bennett, Jeffrey
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Publisher
Kluwer Academic Publishers
Abstract
This study explores ordering effects and response strategies in repeated binary discrete choice experiments. Mechanism design theory and empirical evidence suggest that repeated choice tasks per respondent induce strategic behaviour. We find evidence that strategic opportunities provided by the order in which choice sets are presented to respondents affect choice decisions (strategic response). The results suggest, however, that respondents may solely respond to high cost rather than low cost inconsistencies. That is, respondents are more cost sensitive, and thus have a lower willingness to pay (WTP), if the same or a similar level of provision was offered in a previous choice set at a lower cost than if it was not. Yet, the cost sensitivity, and thus WTP, remains unaffected if the same or a similar level of provision was offered in a previous choice set at a higher cost. Our findings further indicate that cost sensitivity increases (and thus WTP decreases), when respondents progress through the choice task, with this increase (decrease) lessening as more choice questions are answered. Possible explanations are value learning and strategic learning.
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Keywords
Keywords: Discrete choice; Incentive compatibility; Logit models; Ordering effects; Repeated binary choice task; Response strategies; Experiments; Machine design; Mathematical models; Costs; cost-benefit analysis; decision making; discrete choice analysis; empirica Discrete choice experiments; Incentive compatibility; Ordering effects; Random parameter multinominal logit models; Repeated binary choice task; Response strategies
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Source
Environmental and Resource Economics
Type
Journal article
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2037-12-31
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