| By: |
Mikolaj Czajkowski (Faculty of Economic Sciences, University of Warsaw, Poland);
Nick Hanley (School of Geography and Sustainable Development, University of St. Andrews);
Jacob LaRiviere (Department of Economics, University of Tennessee) |
| Abstract: |
This paper develops a reduced form method of controlling for differences in
information sets of subjects in public good discrete choice models, using
stated preference data. The main contribution of our method comes from
accounting for the effect of information provided during a survey on the mean
and the variance of individual-specific scale parameters. In this way we
incorporate both scale heterogeneity as well as observed and unobserved
preference heterogeneity to investigate differences across an d within
information treatments. Our approach will also be useful to researchers who
want to combine stated preference data sets while controlling for scale
differences. We illustrate our approach using the data from a discrete choice
experiment study of a biodiversity conservation program and find that the mean
of individual -specific scale parameters and its variance in the sample is
sensitive to the information set provided to the respondents. |
| Keywords: |
information, uncertainty, choice modelling, information effects, scale, scale heterogeneity, G-MNL, combined datasets |
| JEL: |
Q51 C51 D03 D83 D61 |
| Date: |
2014–07 |
| URL: |
http://d.repec.org/n?u=RePEc:sss:wpaper:2014-04&r=dcm |