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Appears in Collections:Economics Journal Articles
Peer Review Status: Refereed
Title: Cheap and expensive alternatives in stated choice experiments: are they equally considered by respondents?
Author(s): Campbell, Danny
Aravena, Claudia D
Hutchinson, W George
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Issue Date: 2011
Date Deposited: 16-Jan-2013
Citation: Campbell D, Aravena CD & Hutchinson WG (2011) Cheap and expensive alternatives in stated choice experiments: are they equally considered by respondents?. Applied Economics Letters, 18 (8), pp. 743-747.
Abstract: When analysing choice experiments respondents are assumed to attend all attributes and alternatives in the same way. However, because of the important role that the price of the alternatives can play in the decision-making process, the level of price of a specific alternative may have consequences on the level of consideration given to the remaining attributes of the alternative. In this article, we propose the use of a discrete mixtures logit approach to accommodate respondents ignoring alternatives in stated choice experiments. Our results indicate a higher propensity for respondents to ignore attributes when they face cheap rather than expensive alternatives. We also find that allowing for this leads to substantial improvements in the model performance.
DOI Link: 10.1080/13504851.2010.498341
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