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dc.contributor.authorCampbell, Danny-
dc.contributor.authorHensher, David A-
dc.contributor.authorScarpa, Riccardo-
dc.description.abstractWithin the discrete choice literature, there is growing recognition that some respondents do not process all attributes when evaluating their choice outcomes. Worryingly, the cost attribute is often among those attributes that are likely to be ignored by respondents. We use probabilistic decision process models (similar in form to latent class models, but where we define the classes to describe specific heuristics) to facilitate situations where respondents adopt cost thresholds and cutoffs. We further develop this model to address the potential confounding between preference heterogeneity and processing heterogeneity by simultaneously allowing for a segmentation of respondents based on their sensitivities to cost. Results, based on an empirical dataset on the existence value of rare fish species in Ireland, provide further confirmation that a share of respondents did not attended to cost. Importantly, however, when heterogeneity to cost levels is accounted for the inferred incidence of complete non-attendance is markedly lower, to the extent that when cost thresholds and cut-offs are also accommodated it almost disappears. This modelling approach leads to significant gains in model fit and has important implications for welfare analysis.en_UK
dc.relationCampbell D, Hensher DA & Scarpa R (2011) Cost thresholds, cut-offs and sensitivities in stated choice analysis: identification and implications In: International Choice Modelling Conference, International Choice Modelling Conference 2011. Second International Choice Modelling Conference, 2011, 4.7.2011 - 6.7.2011, Leeds, UK.-
dc.rightsPapers presented at the Conference of Choice Modelling are licensed under a Creative Commons Attribution-Non-Commercial 2.0 UK: England & Wales License (
dc.subjectstated choice analysisen_UK
dc.subjectcost thresholdsen_UK
dc.subjectcost cut-offsen_UK
dc.subjectcost sensitivitiesen_UK
dc.subjectlatent class modelen_UK
dc.subjectprobabilistic decision process modelen_UK
dc.subjectexistence valueen_UK
dc.titleCost thresholds, cut-offs and sensitivities in stated choice analysis: identification and implicationsen_UK
dc.typeConference Paperen_UK
dc.type.statusPublisher version (final published refereed version)-
dc.citation.btitleInternational Choice Modelling Conference, International Choice Modelling Conference 2011-
dc.citation.conferencelocationLeeds, UK-
dc.citation.conferencenameSecond International Choice Modelling Conference, 2011-
dc.contributor.affiliationUniversity of Sydney-
dc.contributor.affiliationUniversity of Waikato-
Appears in Collections:Economics Conference Papers and Proceedings

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