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Choosing quantities impacts individuals choice, rationality, and willingness to pay estimates

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  • Elliott J. Dennis
  • Glynn T. Tonsor
  • Jayson L. Lusk

Abstract

Conventional choice experiments ask respondents to choose their most preferred item, but in reality, consumers select both an item and quantity. Using a split sample design focused on U.S. meat demand, we find that flexibility in consumer quantity choice provides similar choice rationality and consumer segmentation as the conventional restricted quantity framework. Improvements include generating choice frequencies consistent with historical purchase data and willingness‐to‐pay estimates more comparable to observed retail price data. Additional benefits include the ability to understand consumer preferences for variety and habit formation and generated data that is compatible with traditional demand estimation, all of which are not possible under the conventional restricted quantity framework.

Suggested Citation

  • Elliott J. Dennis & Glynn T. Tonsor & Jayson L. Lusk, 2021. "Choosing quantities impacts individuals choice, rationality, and willingness to pay estimates," Agricultural Economics, International Association of Agricultural Economists, vol. 52(6), pages 945-962, November.
    • Handle: RePEc:bla:agecon:v:52:y:2021:i:6:p:945-962
    DOI: 10.1111/agec.12678
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    References listed on IDEAS

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    Cited by:

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    2. Wen Lin & David L Ortega & Vincenzina Caputo, 2023. "Experimental quantity, mental budgeting and food choice: a discrete choice experiment application," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(2), pages 457-496.
    3. Staples, Aaron J. & Caputo, Vincenzina & Ellison, Brenna & Malone, Trey, 2022. "Implications of halo effects in the U.S. alcohol market: An open-ended choice experiment with beer and hard seltzer," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322507, Agricultural and Applied Economics Association.
    4. Wen Lin, 2023. "The effect of product quantity on willingness to pay: A meta‐regression analysis of beef valuation studies," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 646-663, July.
    5. repec:ags:aaea22:335919 is not listed on IDEAS

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