IDEAS home Printed from https://ideas.repec.org/a/eee/eejocm/v16y2015icp1-14.html
   My bibliography  Save this article

A joint best–worst scaling and stated choice model considering observed and unobserved heterogeneity: An application to residential location choice

Author

Listed:
  • Balbontin, C.
  • Ortúzar, J. de D.
  • Swait, J.D.

Abstract

Traditional stated choice (SC) experiments are the most widely used method for measuring individual preferences. Notwithstanding, the issue of differentiating between the impacts of the attributes per se vs. the impact of the attribute levels shown in the experiment has been something of a challenge for researchers. Recent studies suggest that Best–Worst scaling (B–W) experiments would allow for the possibility of making this discrimination. In this study we combine B–W data with more traditional SC data to model the choice of residential location; we also allow for observed and unobserved heterogeneity in the combined models. To the best of our knowledge, this type of data fusion has not been used before in this context. Our dataset is fairly unique and corresponds to a sample of individuals interested in acquiring a flat in the centre of Santiago, Chile, from whom both types of responses were elicited. In addition, we have available a larger independent validation sample that responded to a second SC exercise in the same location and time period. We found that the best-fit model corresponded to pooling the ‘best’ and SC responses (i.e., ignoring the ‘worst’ data), while accounting for systematic taste variations (observable heterogeneity) and allowing for a correct treatment of the pseudo-panel nature of the data through error components (unobserved heterogeneity). Our results imply that analysts could get valuable additional information to increase their understanding on individuals’ behaviour when considering the joint use of B–W Scaling and SC data incorporating heterogeneity.

Suggested Citation

  • Balbontin, C. & Ortúzar, J. de D. & Swait, J.D., 2015. "A joint best–worst scaling and stated choice model considering observed and unobserved heterogeneity: An application to residential location choice," Journal of choice modelling, Elsevier, vol. 16(C), pages 1-14.
    • Handle: RePEc:eee:eejocm:v:16:y:2015:i:c:p:1-14
    DOI: 10.1016/j.jocm.2015.09.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1755534515300312
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jocm.2015.09.002?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. Flynn, Terry Nicholas & Louviere, Jordan J. & Peters, Tim J. & Coast, Joanna, 2010. "Using discrete choice experiments to understand preferences for quality of life. Variance-scale heterogeneity matters," Social Science & Medicine, Elsevier, vol. 70(12), pages 1957-1965, June.
    2. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    3. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    4. Daniel J. Phaneuf & Laura O. Taylor & John B. Braden, 2013. "Combining Revealed and Stated Preference Data to Estimate Preferences for Residential Amenities: A GMM Approach," Land Economics, University of Wisconsin Press, vol. 89(1), pages 30-52.
    5. Dietrich Earnhart, 2001. "Combining Revealed and Stated Preference Methods to Value Environmental Amenities at Residential Locations," Land Economics, University of Wisconsin Press, vol. 77(1), pages 12-29.
    6. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
    7. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
    8. Coast, Joanna & Flynn, Terry N. & Natarajan, Lucy & Sproston, Kerry & Lewis, Jane & Louviere, Jordan J. & Peters, Tim J., 2008. "Valuing the ICECAP capability index for older people," Social Science & Medicine, Elsevier, vol. 67(5), pages 874-882, September.
    9. Terry Flynn, 2010. "Using Conjoint Analysis and Choice Experiments to Estimate QALY Values," PharmacoEconomics, Springer, vol. 28(9), pages 711-722, September.
    10. Andrew A. Goett & Kathleen Hudson & Kenneth E. Train, 2000. "Customers' Choice Among Retail Energy Suppliers: The Willingness-to-Pay for Service Attributes," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 1-28.
    11. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, September.
    12. L. Couzner & J. Ratcliffe & L. Lester & T. Flynn & M. Crotty, 2013. "Measuring and valuing quality of life for public health research: application of the ICECAP-O capability index in the Australian general population," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 58(3), pages 367-376, June.
    13. Stephane Hess & John Rose, 2012. "Can scale and coefficient heterogeneity be separated in random coefficients models?," Transportation, Springer, vol. 39(6), pages 1225-1239, November.
    14. Jordan J. Louviere, 2013. "Modeling single individuals: the journey from psych lab to the app store," Chapters, in: Stephane Hess & Andrew Daly (ed.), Choice Modelling, chapter 1, pages 1-47, Edward Elgar Publishing.
    15. N. Flynn, Terry & J. Peters, Tim & Coast, Joanna, 2013. "Quantifying response shift or adaptation effects in quality of life by synthesising best-worst scaling and discrete choice data," Journal of choice modelling, Elsevier, vol. 6(C), pages 34-43.
    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. Rid, Wolfgang & Haider, Wolfgang & Ryffel, Andrea & Beardmore, Ben, 2018. "Visualisations in Choice Experiments: Comparing 3D Film-sequences and Still-images to Analyse Housing Development Alternatives," Ecological Economics, Elsevier, vol. 146(C), pages 203-217.
    2. Ana Margarita Larranaga & Julián Arellana & Luis Ignacio Rizzi & Orlando Strambi & Helena Beatriz Bettella Cybis, 2019. "Using best–worst scaling to identify barriers to walkability: a study of Porto Alegre, Brazil," Transportation, Springer, vol. 46(6), pages 2347-2379, December.
    3. Aizaki, Hideo & Fogarty, James, 2019. "An R package and tutorial for case 2 best–worst scaling," Journal of choice modelling, Elsevier, vol. 32(C), pages 1-1.
    4. Anna Bartczak & Wiktor Budziński & Ulf Liebe & Jurgen Meyerhoff, 2023. "The impact of justice attitudes on air quality valuation: a study combining factorial survey and choice experiment data," Working Papers 2023-26, Faculty of Economic Sciences, University of Warsaw.
    5. Shamshiripour, Ali & Rahimi, Ehsan & (Kouros) Mohammadian, Abolfazl & Auld, Joshua, 2020. "Investigating the influence of latent lifestyles on productive travels: Insights into designing autonomous transit system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 141(C), pages 469-484.
    6. Tim-Benjamin Lembcke & Mathias Willnat & Henrik Lechte & Maike Greve & Julia Heinsohn & Alfred Benedikt Brendel, 2021. "Mobility Need-Adaptive Housing Platforms: The Benefit of a Commute Time Search Feature," Sustainability, MDPI, vol. 13(6), pages 1-14, March.
    7. Jia Guo & Tao Feng & Harry J. P. Timmermans, 2020. "Modeling co-dependent choice of workplace, residence and commuting mode using an error component mixed logit model," Transportation, Springer, vol. 47(2), pages 911-933, April.

    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. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    2. Terry N. Flynn & Elisabeth Huynh & Tim J. Peters & Hareth Al‐Janabi & Sam Clemens & Alison Moody & Joanna Coast, 2015. "Scoring the Icecap‐a Capability Instrument. Estimation of a UK General Population Tariff," Health Economics, John Wiley & Sons, Ltd., vol. 24(3), pages 258-269, March.
    3. Mark J. Koetse & Roy Brouwer, 2016. "Reference Dependence Effects on WTA and WTP Value Functions and Their Disparity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(4), pages 723-745, December.
    4. Kaambwa, Billingsley & Lancsar, Emily & McCaffrey, Nicola & Chen, Gang & Gill, Liz & Cameron, Ian D. & Crotty, Maria & Ratcliffe, Julie, 2015. "Investigating consumers' and informal carers' views and preferences for consumer directed care: A discrete choice experiment," Social Science & Medicine, Elsevier, vol. 140(C), pages 81-94.
    5. Davis, Katrina J & Burton, Michael & Kragt, Marit E, 2016. "Discrete choice models: scale heterogeneity and why it matters," Working Papers 235373, University of Western Australia, School of Agricultural and Resource Economics.
    6. repec:sss:wpaper:201407 is not listed on IDEAS
    7. Julie Ratcliffe & Terry Flynn & Frances Terlich & Katherine Stevens & John Brazier & Michael Sawyer, 2012. "Developing Adolescent-Specific Health State Values for Economic Evaluation," PharmacoEconomics, Springer, vol. 30(8), pages 713-727, August.
    8. Catalina M. Torres & Sergio Colombo & Nick Hanley, 2014. "Incorrectly accounting for preference heterogeneity in choice experiments: what are the implications for welfare measurement?," DEA Working Papers 65, Universitat de les Illes Balears, Departament d'Economía Aplicada.
    9. Huynh, Elisabeth & Coast, Joanna & Rose, John & Kinghorn, Philip & Flynn, Terry, 2017. "Values for the ICECAP-Supportive Care Measure (ICECAP-SCM) for use in economic evaluation at end of life," Social Science & Medicine, Elsevier, vol. 189(C), pages 114-128.
    10. N. Flynn, Terry & J. Peters, Tim & Coast, Joanna, 2013. "Quantifying response shift or adaptation effects in quality of life by synthesising best-worst scaling and discrete choice data," Journal of choice modelling, Elsevier, vol. 6(C), pages 34-43.
    11. Emily Lancsar & Peter Burge, 2014. "Choice modelling research in health economics," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 28, pages 675-687, Edward Elgar Publishing.
    12. Joanna Coast & Hareth Al‐Janabi & Eileen J. Sutton & Susan A. Horrocks & A. Jane Vosper & Dawn R. Swancutt & Terry N. Flynn, 2012. "Using qualitative methods for attribute development for discrete choice experiments: issues and recommendations," Health Economics, John Wiley & Sons, Ltd., vol. 21(6), pages 730-741, June.
    13. repec:eid:wpaper:7/09 is not listed on IDEAS
    14. Gevrek, Z.Eylem & Uyduranoglu, Ayse, 2015. "Public preferences for carbon tax attributes," Ecological Economics, Elsevier, vol. 118(C), pages 186-197.
    15. Roger J. Jiao & Feng Zhou & Chih-Hsing Chu, 2017. "Decision theoretic modeling of affective and cognitive needs for product experience engineering: key issues and a conceptual framework," Journal of Intelligent Manufacturing, Springer, vol. 28(7), pages 1755-1767, October.
    16. Baskaran, Ramesh & Cullen, Ross & Colombo, Sergio, 2010. "Testing different types of benefit transfer in valuation of ecosystem services: New Zealand winegrowing case studies," Ecological Economics, Elsevier, vol. 69(5), pages 1010-1022, March.
    17. Hoyos, David & Mariel, Petr & Fernández-Macho, Javier, 2009. "The influence of cultural identity on the WTP to protect natural resources: Some empirical evidence," Ecological Economics, Elsevier, vol. 68(8-9), pages 2372-2381, June.
    18. Riccardo SCARPA & Fiorenza SPALATRO & Maurizio CANAVARI, 2005. "Investigating Preferences For Environment Friendly Production," Others 0505003, University Library of Munich, Germany.
    19. Stefania Troiano & Daniel Vecchiato & Francesco Marangon & Tiziano Tempesta & Federico Nassivera, 2019. "Households’ Preferences for a New ‘Climate-Friendly’ Heating System: Does Contribution to Reducing Greenhouse Gases Matter?," Energies, MDPI, vol. 12(13), pages 1-19, July.
    20. De Valck, Jeremy & Vlaeminck, Pieter & Liekens, Inge & Aertsens, Joris & Chen, Wendy & Vranken, Liesbet, 2012. "The sources of preference heterogeneity for nature restoration scenarios," Working Papers 146522, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    21. Marva Stithou & Yiannis Kountouris & Phoebe Koundouri, 2011. "A Choice Experiments Application in Transport Infrastructure: A case study on travel time savings, accidents and pollution reduction," DEOS Working Papers 1116, Athens University of Economics and Business.
    22. Holte, Jon Helgheim & Kjaer, Trine & Abelsen, Birgit & Olsen, Jan Abel, 2015. "The impact of pecuniary and non-pecuniary incentives for attracting young doctors to rural general practice," Social Science & Medicine, Elsevier, vol. 128(C), pages 1-9.

    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:16:y:2015:i:c:p:1-14. 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.