IDEAS home Printed from https://ideas.repec.org/a/eee/eejocm/v11y2014icp16-29.html
   My bibliography  Save this article

Does attribute cut-off elicitation affect choice consistency? Contrasting hypothetical and real-money choice experiments

Author

Listed:
  • Moser, Riccarda
  • Raffaelli, Roberta

Abstract

The use of threshold values (cut-offs) is a well-recognized simplifying strategy in real life decision-making processes. Recent stated preference studies show that strategies used by respondents in hypothetical settings are consistent with how they normally process information in real markets. Of the different discrete choice models using cut-offs, the Swait (2001) model allows different heuristics to be captured. The few applications of this soft cut-off approach mainly focus on the effects of cut-offs on attribute estimates and willingness to pay, but scant attention has been paid to the consequences of cut-off elicitation. We focussed our investigation on the effects of self-reported cut-offs on choice consistency. In line with studies on context and complexity effects in choice modelling, we parameterize the scale parameter on the basis of two alternative measures related to the stated cut-offs: (1) the number of potential violations included in the choice cards, and (2) the number of cut-offs stated at the most severe level. Moreover, we investigated whether different treatments (hypothetical vs. real-money) affect cut-off elicitations, violations and choice consistency.

Suggested Citation

  • Moser, Riccarda & Raffaelli, Roberta, 2014. "Does attribute cut-off elicitation affect choice consistency? Contrasting hypothetical and real-money choice experiments," Journal of choice modelling, Elsevier, vol. 11(C), pages 16-29.
    • Handle: RePEc:eee:eejocm:v:11:y:2014:i:c:p:16-29
    DOI: 10.1016/j.jocm.2014.02.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1755534514000232
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jocm.2014.02.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bush, Glenn & Colombo, Sergio & Hanley, Nicholas, 2008. "Measuring the demand for nature-based tourism in Africa: a choice experiment using the "cut-off" approach," Stirling Economics Discussion Papers 2008-06, University of Stirling, Division of Economics.
    2. Sigal Kaplan & Shlomo Bekhor & Yoram Shiftan, 2011. "Development and estimation of a semi-compensatory residential choice model based on explicit choice protocols," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 51-80, August.
    3. Marcucci, Edoardo & Gatta, Valerio, 2011. "Regional airport choice: Consumer behaviour and policy implications," Journal of Transport Geography, Elsevier, vol. 19(1), pages 70-84.
    4. Laura O. Taylor & Ronald G. Cummings, 1999. "Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method," American Economic Review, American Economic Association, vol. 89(3), pages 649-665, June.
    5. DeShazo, J. R. & Fermo, German, 2002. "Designing Choice Sets for Stated Preference Methods: The Effects of Complexity on Choice Consistency," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 123-143, July.
    6. Swait, Joffre & Adamowicz, Wiktor, 2001. "The Influence of Task Complexity on Consumer Choice: A Latent Class Model of Decision Strategy Switching," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(1), pages 135-148, June.
    7. John Rotondo, 1986. "Technical Note—Price as an Aspect of Choice in EBA," Marketing Science, INFORMS, vol. 5(4), pages 391-402.
    8. Wiktor Adamowicz & J. Deshazo, 2006. "Frontiers in Stated Preferences Methods: An Introduction," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(1), pages 1-6, May.
    9. Deacue Fields & Walt Prevatt, 2008. "An Incentive Compatible Conjoint Ranking Mechanism," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 487-498.
    10. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, November.
    11. Payne, John W & Bettman, James R & Schkade, David A, 1999. "Measuring Constructed Preferences: Towards a Building Code," Journal of Risk and Uncertainty, Springer, vol. 19(1-3), pages 243-270, December.
    12. William Henry Kaye-Blake & Walt L. Abell & Eva Zellman, 2009. "Respondents' ignoring of attribute information in a choice modelling survey," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 547-564, October.
    13. Caussade, Sebastián & Ortúzar, Juan de Dios & Rizzi, Luis I. & Hensher, David A., 2005. "Assessing the influence of design dimensions on stated choice experiment estimates," Transportation Research Part B: Methodological, Elsevier, vol. 39(7), pages 621-640, August.
    14. Waiyan Leong & David Alan Hensher, 2012. "Embedding Decision Heuristics in Discrete Choice Models: A Review," Transport Reviews, Taylor & Francis Journals, vol. 32(3), pages 313-331, February.
    15. Swait, Joffre, 2001. "A non-compensatory choice model incorporating attribute cutoffs," Transportation Research Part B: Methodological, Elsevier, vol. 35(10), pages 903-928, November.
    16. List John A. & Sinha Paramita & Taylor Michael H., 2006. "Using Choice Experiments to Value Non-Market Goods and Services: Evidence from Field Experiments," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(2), pages 1-39, January.
    17. David A. Hensher, 2004. "Identifying the Influence of Stated Choice Design Dimensionality on Willingness to Pay for Travel Time Savings," Journal of Transport Economics and Policy, University of Bath, vol. 38(3), pages 425-446, September.
    18. Swait, Joffre & Adamowicz, Wiktor, 2001. "Choice Environment, Market Complexity, and Consumer Behavior: A Theoretical and Empirical Approach for Incorporating Decision Complexity into Models of Consumer Choice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 86(2), pages 141-167, November.
    19. Hideo Aizaki & Manabu Sawada & Kazuo Sato & Toshiko Kikkawa, 2012. "A noncompensatory choice experiment analysis of Japanese consumers' purchase preferences for beef," Applied Economics Letters, Taylor & Francis Journals, vol. 19(5), pages 439-444, March.
    20. Glenn Bush & Sergio Colombo & Nick Hanley, 2009. "Should all Choices Count? Using the Cut-Offs Approach to Edit Responses in a Choice Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(3), pages 397-414, November.
    21. Ford, J. Kevin & Schmitt, Neal & Schechtman, Susan L. & Hults, Brian M. & Doherty, Mary L., 1989. "Process tracing methods: Contributions, problems, and neglected research questions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 43(1), pages 75-117, February.
    22. Arentze, Theo & Borgers, Aloys & Timmermans, Harry & DelMistro, Romano, 2003. "Transport stated choice responses: effects of task complexity, presentation format and literacy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(3), pages 229-244, May.
    23. Danielis, Romeo & Marcucci, Edoardo, 2007. "Attribute cut-offs in freight service selection," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(5), pages 506-515, September.
    24. Gro Steine & Kari Kolstad, 2006. "Consumers' Willingness to Pay for the Color of Salmon: A Choice Experiment with Real Economic Incentives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 1050-1061.
    25. Campbell, Danny & Hensher, David A. & Scarpa, Riccardo, 2012. "Cost thresholds, cut-offs and sensitivities in stated choice analysis: Identification and implications," Resource and Energy Economics, Elsevier, vol. 34(3), pages 396-411.
    26. Elrod, Terry & Johnson, Richard D. & White, Joan, 2004. "A new integrated model of noncompensatory and compensatory decision strategies," Organizational Behavior and Human Decision Processes, Elsevier, vol. 95(1), pages 1-19, September.
    27. Jayson L. Lusk & Ted C. Schroeder, 2004. "Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steaks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 467-482.
    28. Svenson, Ola, 1996. "Decision Making and the Search for Fundamental Psychological Regularities: What Can Be Learned from a Process Perspective?," Organizational Behavior and Human Decision Processes, Elsevier, vol. 65(3), pages 252-267, March.
    29. Morten Mørkbak & Tove Christensen & Dorte Gyrd-Hansen, 2010. "Choke Price Bias in Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(4), pages 537-551, April.
    30. Jordan Louviere & Kenneth Train & Moshe Ben-Akiva & Chandra Bhat & David Brownstone & Trudy Cameron & Richard Carson & J. Deshazo & Denzil Fiebig & William Greene & David Hensher & Donald Waldman, 2005. "Recent Progress on Endogeneity in Choice Modeling," Marketing Letters, Springer, vol. 16(3), pages 255-265, December.
    31. Cantillo, Víctor & Heydecker, Benjamin & de Dios Ortúzar, Juan, 2006. "A discrete choice model incorporating thresholds for perception in attribute values," Transportation Research Part B: Methodological, Elsevier, vol. 40(9), pages 807-825, November.
    32. Timothy J. Gilbride & Greg M. Allenby, 2004. "A Choice Model with Conjunctive, Disjunctive, and Compensatory Screening Rules," Marketing Science, INFORMS, vol. 23(3), pages 391-406, October.
    33. Mentzakis, Emmanouil & Stefanowska, Patricia & Hurley, Jeremiah, 2011. "A discrete choice experiment investigating preferences for funding drugs used to treat orphan diseases: an exploratory study," Health Economics, Policy and Law, Cambridge University Press, vol. 6(3), pages 405-433, July.
    34. David A. Hensher & John M. Rose, 2012. "The Influence of Alternative Acceptability, Attribute Thresholds and Choice Response Certainty on Automobile Purchase Preferences," Journal of Transport Economics and Policy, University of Bath, vol. 46(3), pages 451-468, September.
    35. Alfnes, Frode & Guttormsen, Atle G. & Steine, Gro & Kolstad, Kari, 2005. "Consumers' Willingness To Pay For The Color Of Salmon:A Choice Experiment With Real Economic Incentives," 2005 Annual meeting, July 24-27, Providence, RI 19126, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    36. David A. Hensher, 2006. "How do respondents process stated choice experiments? Attribute consideration under varying information load," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(6), pages 861-878.
    37. Martínez, Francisco & Aguila, Felipe & Hurtubia, Ricardo, 2009. "The constrained multinomial logit: A semi-compensatory choice model," Transportation Research Part B: Methodological, Elsevier, vol. 43(3), pages 365-377, March.
    38. Jordan J. Louviere & Towhidul Islam & Nada Wasi & Deborah Street & Leonie Burgess, 2008. "Designing Discrete Choice Experiments: Do Optimal Designs Come at a Price?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(2), pages 360-375, March.
    39. Lusk, Jayson L. & Roosen, Jutta & Shogren, Jason (ed.), 2011. "The Oxford Handbook of the Economics of Food Consumption and Policy," OUP Catalogue, Oxford University Press, number 9780199569441, Decembrie.
    40. Huber, Joel & Klein, Noreen M, 1991. "Adapting Cutoffs to the Choice Environment: The Effects of Attribute Correlation and Reliability," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(3), pages 346-357, December.
    41. Wiktor L. Adamowicz & Joffre D. Swait, 2013. "Are Food Choices Really Habitual? Integrating Habits, Variety-seeking, and Compensatory Choice in a Utility-maximizing Framework," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(1), pages 17-41.
    42. Alfnes, Frode & Guttormsen, Atle G. & Steine, Gro & Kolstad, Kari, 2006. "Ajae Appendix: Consumers’ Willingness To Pay For The Color Of Salmon: A Choice Experiment With Real Economic Incentives," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 88(4), pages 1-8, November.
    43. Riccarda Moser & Roberta Raffaelli & Sandra Notaro, 2014. "Testing hypothetical bias with a real choice experiment using respondents' own money," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(1), pages 25-46, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Haghani, Milad & Sarvi, Majid, 2018. "Hypothetical bias and decision-rule effect in modelling discrete directional choices," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 361-388.
    2. Capurso, Mauro & Hess, Stephane & Dekker, Thijs, 2019. "Modelling the role of consideration of alternatives in mode choice: An application on the Rome-Milan corridor," Transportation Research Part A: Policy and Practice, Elsevier, vol. 129(C), pages 170-184.
    3. Peschel, Anne O. & Grebitus, Carola & Colson, Gregory & Hu, Wuyang, 2016. "Explaining the use of attribute cut-off values in decision making by means of involvement," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 65(C), pages 58-66.
    4. Haghani, Milad & Sarvi, Majid, 2019. "Laboratory experimentation and simulation of discrete direction choices: Investigating hypothetical bias, decision-rule effect and external validity based on aggregate prediction measures," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 134-157.
    5. Oehlmann, Malte & Glenk, Klaus & Lloyd-Smith, Patrick & Meyerhoff, Jürgen, 2021. "Quantifying landscape externalities of renewable energy development: Implications of attribute cut-offs in choice experiments," Resource and Energy Economics, Elsevier, vol. 65(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Moser, Riccarda & Raffaelli, Roberta, 2011. "Exploiting cut-off information to incorporate context effect: a discrete choice experiment on small fruits in a Alpine region," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114646, European Association of Agricultural Economists.
    2. Moser, Riccarda & Raffaelli, Roberta & Notaro, Sandra, 2010. "The Role Of Production Methods In Fruit Purchasing Behaviour: Hypothetical Vs Actual Consumers’ Preferences And Stated Minimum Requirements," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116426, European Association of Agricultural Economists.
    3. Oehlmann, Malte & Glenk, Klaus & Lloyd-Smith, Patrick & Meyerhoff, Jürgen, 2021. "Quantifying landscape externalities of renewable energy development: Implications of attribute cut-offs in choice experiments," Resource and Energy Economics, Elsevier, vol. 65(C).
    4. Ladenburg, Jacob & Olsen, Søren Bøye, 2014. "Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys," Resource and Energy Economics, Elsevier, vol. 37(C), pages 39-63.
    5. Mohammed H. Alemu & Søren B. Olsen, 2017. "Can a Repeated Opt-Out Reminder remove hypothetical bias in discrete choice experiments? An application to consumer valuation of novel food products," IFRO Working Paper 2017/05, University of Copenhagen, Department of Food and Resource Economics.
    6. Fifer, Simon & Rose, John M., 2016. "Can you ever be certain? Reducing hypothetical bias in stated choice experiments via respondent reported choice certaintyAuthor-Name: Beck, Matthew J," Transportation Research Part B: Methodological, Elsevier, vol. 89(C), pages 149-167.
    7. Yang, Jui-Chen & Johnson, F. Reed & Kilambi, Vikram & Mohamed, Ateesha F., 2015. "Sample size and utility-difference precision in discrete-choice experiments: A meta-simulation approach," Journal of choice modelling, Elsevier, vol. 16(C), pages 50-57.
    8. Kaye-Blake, William & Abell, Walter L. & Zellman, Eva, 2009. "Respondents’ ignoring of attribute information in a choice modelling survey," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 1-18.
    9. Mickael Bech & Trine Kjaer & Jørgen Lauridsen, 2011. "Does the number of choice sets matter? Results from a web survey applying a discrete choice experiment," Health Economics, John Wiley & Sons, Ltd., vol. 20(3), pages 273-286, March.
    10. Hensher, David A., 2010. "Hypothetical bias, choice experiments and willingness to pay," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 735-752, July.
    11. Shiwen Quan & Yinchu Zeng & Xiaohua Yu & Te Bao, 2018. "WTP for baby milk formula in China: Using attribute nonattendance as a priori information to select attributes in choice experiment," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 300-320, March.
    12. Jürgen Meyerhoff & Malte Oehlmann & Priska Weller, 2015. "The Influence of Design Dimensions on Stated Choices in an Environmental Context," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 61(3), pages 385-407, July.
    13. Richard Yao & Riccardo Scarpa & John Rose & James Turner, 2015. "Experimental Design Criteria and Their Behavioural Efficiency: An Evaluation in the Field," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(3), pages 433-455, November.
    14. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part II. Conceptualisation of external validity, sources and explanations of bias and effectiveness of mitigation methods," Journal of choice modelling, Elsevier, vol. 41(C).
    15. Milad Haghani & Michiel C. J. Bliemer & John M. Rose & Harmen Oppewal & Emily Lancsar, 2021. "Hypothetical bias in stated choice experiments: Part II. Macro-scale analysis of literature and effectiveness of bias mitigation methods," Papers 2102.02945, arXiv.org.
    16. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    17. Elizabeth Kinter & Thomas Prior & Christopher Carswell & John Bridges, 2012. "A Comparison of Two Experimental Design Approaches in Applying Conjoint Analysis in Patient-Centered Outcomes Research," The Patient: Patient-Centered Outcomes Research, Springer;International Academy of Health Preference Research, vol. 5(4), pages 279-294, December.
    18. Hoyos, David, 2010. "The state of the art of environmental valuation with discrete choice experiments," Ecological Economics, Elsevier, vol. 69(8), pages 1595-1603, June.
    19. Andrew Collins & John Rose & Stephane Hess, 2012. "Interactive stated choice surveys: a study of air travel behaviour," Transportation, Springer, vol. 39(1), pages 55-79, January.
    20. Rose, John M. & Hensher, David A. & Caussade, Sebastian & Ortúzar, Juan de Dios & Jou, Rong-Chang, 2009. "Identifying differences in willingness to pay due to dimensionality in stated choice experiments: a cross country analysis," Journal of Transport Geography, Elsevier, vol. 17(1), pages 21-29.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eejocm:v:11:y:2014:i:c:p:16-29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-choice-modelling .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.