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Using Attitudes to Characterize Heterogeneous Preferences

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  • Moore, Rebecca

Abstract

This paper compares three approaches to using attitudinal data to describe heterogeneous preferences for non-market goods. Two latent class models and one random parameter logit model are included. Each model makes different assumptions about the role of attitudes in the decision process. Specifically, each model assumes a different relationship between attitudes and preferences and these differences are discussed in terms of economic and social psychology theory. The three models are then used to examine individual preferences for water clarity improvements in Green Bay, Wisconsin. The results suggest that the choice of models has important implications on the quantitative results and on the nature of the preference heterogeneity, but does not affect the qualitative implications of the results. The estimates of expected WTP were nearly identical across the three models.

Suggested Citation

  • Moore, Rebecca, 2008. "Using Attitudes to Characterize Heterogeneous Preferences," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6488, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea08:6488
    DOI: 10.22004/ag.econ.6488
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    References listed on IDEAS

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    Cited by:

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    2. Meldrum, James R., 2015. "Comparing different attitude statements in latent class models of stated preferences for managing an invasive forest pathogen," Ecological Economics, Elsevier, vol. 120(C), pages 13-22.
    3. Rousseau, Sandra & Vranken, Liesbet, 2013. "Green market expansion by reducing information asymmetries: Evidence for labeled organic food products," Food Policy, Elsevier, vol. 40(C), pages 31-43.
    4. 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.
    5. Pepermans, Guido, 2014. "Valuing smart meters," Energy Economics, Elsevier, vol. 45(C), pages 280-294.

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    Keywords

    Institutional and Behavioral Economics; Public Economics; Resource /Energy Economics and Policy;
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