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Choice Experiments: identifying preferences or production functions?

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  • Gibson, Fiona L.
  • Burton, Michael P.

Abstract

This report presents an alternative perspective on how respondents consider choice experiment options. Building on the ‘new’ model of consumer demand by Stigler and Becker (1977), the report suggests that the attributes within choice experiments are not valued directly. Rather, they are used to generate higher-level improvement in the environment (‘constructs’). This implies that to achieve the environmental outcome, what are currently viewed as marginal utilities of attributes are in fact marginal utilities mixed with (subjective) marginal productivity of the attribute. The research report also proposes that hierarchical Information integration methods may allow separate identification of the utility and production functions, and the individual heterogeneity therein.

Suggested Citation

  • Gibson, Fiona L. & Burton, Michael P., 2009. "Choice Experiments: identifying preferences or production functions?," Research Reports 94889, Australian National University, Environmental Economics Research Hub.
    • Handle: RePEc:ags:eerhrr:94889
    DOI: 10.22004/ag.econ.94889
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    File URL: https://ageconsearch.umn.edu/record/94889/files/EERH_RR40.pdf
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    References listed on IDEAS

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    1. Araña, Jorge E. & León, Carmelo J. & Quevedo, Jose L., 2006. "The effect of medical experience on the economic evaluation of health policies. A discrete choice experiment," Social Science & Medicine, Elsevier, vol. 63(2), pages 512-524, July.
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    Cited by:

    1. Cleland, Jonelle & McCartney, Abbie, 2010. "Putting the Spotlight on Attribute Definition: Divergence Between Experts and the Public," Research Reports 107576, Australian National University, Environmental Economics Research Hub.
    2. Cleland, Jonelle & Rogers, Abbie A., 2010. "Putting the Spotlight on Attribute Definition: a knowledge base approach," Research Reports 107578, Australian National University, Environmental Economics Research Hub.

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