Design of Discrete Choice Experiments

Author(s):  
Deborah J. Street ◽  
Rosalie Viney

Discrete choice experiments are a popular stated preference tool in health economics and have been used to address policy questions, establish consumer preferences for health and healthcare, and value health states, among other applications. They are particularly useful when revealed preference data are not available. Most commonly in choice experiments respondents are presented with a situation in which a choice must be made and with a a set of possible options. The options are described by a number of attributes, each of which takes a particular level for each option. The set of possible options is called a “choice set,” and a set of choice sets comprises the choice experiment. The attributes and levels are chosen by the analyst to allow modeling of the underlying preferences of respondents. Respondents are assumed to make utility-maximizing decisions, and the goal of the choice experiment is to estimate how the attribute levels affect the utility of the individual. Utility is assumed to have a systematic component (related to the attributes and levels) and a random component (which may relate to unobserved determinants of utility, individual characteristics or random variation in choices), and an assumption must be made about the distribution of the random component. The structure of the set of choice sets, from the universe of possible choice sets represented by the attributes and levels, that is shown to respondents determines which models can be fitted to the observed choice data and how accurately the effect of the attribute levels can be estimated. Important structural issues include the number of options in each choice set and whether or not options in the same choice set have common attribute levels. Two broad approaches to constructing the set of choice sets that make up a DCE exist—theoretical and algorithmic—and no consensus exists about which approach consistently delivers better designs, although simulation studies and in-field comparisons of designs constructed by both approaches exist.

2019 ◽  
Vol 47 (3) ◽  
pp. 1133-1172
Author(s):  
Nathan P Kemper ◽  
Jennie S Popp ◽  
Rodolfo M Nayga

Abstract One limitation of stated-preference methods is the formation of hypothetical bias. To address this, the honesty oath has been used as an ex ante technique to reduce hypothetical bias. Our study provides a query account of the honesty oath in a discrete-choice experiment setting by using Query Theory to examine the mechanism behind the effectiveness of the honesty oath. Our results show that the honesty oath can change the content and order of queries; potentially reducing hypothetical bias in discrete choice experiments. The study suggests the potential usefulness of Query Theory in examining thought processes of respondents in valuation studies.


2017 ◽  
Vol 38 (3) ◽  
pp. 306-318 ◽  
Author(s):  
Brendan Mulhern ◽  
Richard Norman ◽  
Koonal Shah ◽  
Nick Bansback ◽  
Louise Longworth ◽  
...  

2021 ◽  
Vol 70 (3) ◽  
pp. 192-207
Author(s):  
Insa Thiermann ◽  
Gunnar Breustedt ◽  
Uwe Latacz-Lohmann

Im vorliegenden Artikel wurde mithilfe eines Discrete-Choice-Experiments bestimmt, welche Faktoren die Entscheidung von Landwirten beeinflussen, an einem hypothetischen Förderprogramm zur Ansäuerung von Gülle bei der Feldausbringung teilzunehmen. Bei der Gülleansäuerung handelt es sich um ein in Dänemark verbreitetes Verfahren zur Minderung von Ammoniakemissionen. Die Merkmale aus den Choice-Sets bildeten die Eigenschaften des Verfahrens (Emissionsminderung), der Finanzierung (Erstattung der zusätzlichen Kosten) und der gesetzlichen Regelungen (mindestens anzurechnende Stickstoffmenge, Erlass von Auflagen der Düngeverordnung) ab. Die Auswertung der Befragung erfolgte durch ein Mixed-Logit-Modell und die Schätzung latenter Klassen. Insgesamt zeigte sich eine sehr hohe Bereitschaft an möglichen Förderprogrammen teilzunehmen und das Verfahren zu nutzen. Die Entscheidung für die Gülleansäuerung wurde positiv von der zu erwartenden Emissionsreduktion und der Erstattung der zusätzlichen Kosten beeinflusst. Auch das Angebot, Gülle nicht einarbeiten zu müssen, wirkte sich positiv auf die Teilnahmebereitschaft aus. Die Vorgabe, den zusätzlich enthaltenden Stickstoff in der Düngebedarfsberechnung anzusetzen, senkte die Bereitschaft der Teilnahme.


Author(s):  
Tim Haab ◽  
Lynne Lewis ◽  
John Whitehead

The contingent valuation method (CVM) is a stated preference approach to the valuation of non-market goods. It has a 50+-year history beginning with a clever suggestion to simply ask people for their consumer surplus. The first study was conducted in the 1960s and over 10,000 studies have been conducted to date. The CVM is used to estimate the use and non-use values of changes in the environment. It is one of the more flexible valuation methods, having been applied in a large number of contexts and policies. The CVM requires construction of a hypothetical scenario that makes clear what will be received in exchange for payment. The scenario must be realistic and consequential. Economists prefer revealed preference methods for environmental valuation due to their reliance on actual behavior data. In unguarded moments, economists are quick to condemn stated preference methods due to their reliance on hypothetical behavior data. Stated preference methods should be seen as approaches to providing estimates of the value of certain changes in the allocation of environmental and natural resources for which no other method can be used. The CVM has a tortured history, having suffered slings and arrows from industry-funded critics following the Exxon Valdez and British Petroleum (BP)–Deepwater Horizon oil spills. The critics have harped on studies that fail certain tests of hypothetical bias and scope, among others. Nonetheless, CVM proponents have found that it produces similar value estimates to those estimated from revealed preference methods such as the travel cost and hedonic methods. The CVM has produced willingness to pay (WTP) estimates that exhibit internal validity. CVM research teams must have a range of capabilities. A CVM study involves survey design so that the elicited WTP estimates have face validity. Questionnaire development and data collection are skills that must be mastered. Welfare economic theory is used to guide empirical tests of theory such as the scope test. Limited dependent variable econometric methods are often used with panel data to test value models and develop estimates of WTP. The popularity of the CVM is on the wane; indeed, another name for this article could be “the rise and fall of CVM,” not because the CVM is any less useful than other valuation methods. It is because the best practice in the CVM is merging with discrete choice experiments, and researchers seem to prefer to call their approach discrete choice experiments. Nevertheless, the problems that plague discrete choice experiments are the same as those that plague contingent valuation. Discrete choice experiment–contingent valuation–stated preference researchers should continue down the same familiar path of methods development.


2017 ◽  
Vol 27 (6) ◽  
pp. 677-683 ◽  
Author(s):  
Ramzi G Salloum ◽  
Jordan J Louviere ◽  
Kayla R Getz ◽  
Farahnaz Islam ◽  
Dien Anshari ◽  
...  

BackgroundThe US Food and Drug Administration (FDA) has regulatory authority to use inserts to communicate with consumers about harmful and potentially harmful constituents (HPHCs) in tobacco products; however, little is known about the most effective manner for presenting HPHC information.MethodsIn a discrete choice experiment, participants evaluated eight choice sets, each of which showed two cigarette packages from four different brands and tar levels (high vs low), accompanied by an insert that included between-subject manipulations (ie, listing of HPHCs vs grouping by disease outcome and numeric values ascribed to HPHCs vs no numbers) and within-subject manipulations (ie, 1 of 4 warning topics; statement linking an HPHC with disease vs statement with no HPHC link). For each choice set, participants were asked: (1) which package is more harmful and (2) which motivates them to not smoke; each with a ’no difference' option. Alternative-specific logit models regressed choice on attribute levels.Results1212 participants were recruited from an online consumer panel (725 18–29-year-old smokers and susceptible non-smokers and 487 30–64-year-old smokers). Participants were more likely to endorse high-tar products as more harmful than low-tar products, with a greater effect when numeric HPHC information was present. Compared with a simple warning statement, the statement linking HPHCs with disease encouraged quit motivation.ConclusionsNumeric HPHC information on inserts appears to produce misunderstandings that some cigarettes are less harmful than others. Furthermore, brief narratives that link HPHCs to smoking-related disease may promote cessation versus communications that do not explicitly link HPHCs to disease.


2021 ◽  
Author(s):  
Verena Struckmann ◽  
Verena Vogt ◽  
Julia Köppen ◽  
Theresa Meier ◽  
Maaike Hoedemakers ◽  
...  

Zusammenfassung Ziel Ziel dieser Studie ist Präferenzen zu erheben, die multimorbide Patienten, pflegende Angehörige, Leistungserbringer, Kostenträger oder politische Entscheidungsträger verschiedenen Endpunkten von integrierten Versorgungsprogrammen (IV-Programmen) in Deutschland beimessen und diese zu vergleichen. Methodik Mit Hilfe eines Discrete Choice Experiments (DCE) wurden die Präferenzen der Befragten für die Endpunkte von zwei IV-Programmen ermittelt. Jedes IV-Programm wurde anhand von Attributen, bzw.Endpunkten präsentiert, die das „Triple Aim“ abbilden. Sie waren in die Endpunkte Wohlbefinden, Erfahrung mit Versorgung und Kosten unterteilt, mit insgesamt acht Attributen und jeweils drei Ausprägungen. Ergebnisse Die Ergebnisse von 676 Fragebögen zeigen, dass die Attribute „Lebensfreude“ und „Kontinuität der Versorgung“ interessengruppenübergreifend die höchsten Bewertungen erhalten. Am geringsten blieben die relativen Bewertungen für alle Interessengruppen bei dem Attribut „Kosten“. Die Präferenzen der Leistungserbringer und pflegenden Angehörigen unterschieden sich am deutlichsten von denen der Patienten. Diese Unterschiede betrafen meist die „körperliche Funktionsfähigkeit“, die von Patienten am höchsten bewertet wurde, die „Personenzentrierung“ und „Kontinuität der Versorgung“, die die höchsten Bewertungen von den Leistungserbringern erhielten. Schlussfolgerung Die identifizierten Präferenzheterogenitäten in Bezug auf die Endpunkte von IV-Programmen zwischen den Interessengruppen verdeutlichen, wie wichtig es für eine optimale Ausgestaltung von IV-Programmen ist, Vertreter der Praxis und politische Entscheidungsträger über die unterschiedlichen Perspektiven zu informieren. Die Ergebnisse unterstreichen zudem die Relevanz von gemeinsamen Entscheidungsfindungs- und Abstimmungsprozessen zwischen Leistungserbringern, pflegenden Angehörigen und Patienten.


2016 ◽  
Vol 37 (3) ◽  
pp. 285-297 ◽  
Author(s):  
Brendan Mulhern ◽  
Nick Bansback ◽  
Arne Risa Hole ◽  
Aki Tsuchiya

Background: Discrete choice experiments incorporating duration can be used to derive health state values for EQ-5D-5L. Yet, methodological issues relating to the duration attribute and the optimal way to select health states remain. The aims of this study were to: test increasing the number of duration levels and choice sets where duration varies (aim 1); compare designs with zero and non-zero prior values (aim 2); and investigate a novel, two-stage design to incorporate prior values (aim 3). Methods: Informed by zero and non-zero prior values, two efficient designs were developed, each consisting of 120 EQ-5D-5L health profile pairs with one of six duration levels (aims 1 and 2). Another 120 health state pairs were selected, with one of six duration levels allocated in a second stage based on existing estimated utility of the states (aim 3). An online sample of 2,002 members of the UK general population completed 10 choice sets each. Differences across the regression coefficients from the three designs were assessed. Results: The zero prior value design produced a model with coefficients that were generally logically ordered, but the non-zero prior value design resulted in a set of less ordered coefficients where some differed significantly. The two-stage design resulted in ordered and significant coefficients. The non-zero prior value design may include more “difficult” choice sets, based on the proportions choosing each profile. Conclusions: There is some indication of compromised “respondent efficiency”, suggesting that the use of non-zero prior values will not necessarily result in better overall precision. It is feasible to design discrete choice experiments in two stages by allocating duration values to EQ-5D-5L health state pairs based on estimates from prior studies.


2021 ◽  
Vol 1 (1) ◽  
pp. 1-9
Author(s):  
Sheila Ghazia Shofwani ◽  
Abdul Kudus

Abstract. This research discusses about planning of guest formulation in the selection of environmentally green hotels by using a 2k-p factorial fractional design and combinatorial choice sets on the Discrete Choice Experiment method. Discrete Choice Experiments is a quantitative method for survey-based respondents' preference assessment. This method asks respondents to choose the preferred choice from several alternative choices provided. With this method the authors will apply to the case of green hotel selection, because currently in the United States, investors are beginning to look at green building opportunities as a long-term investment in accordance with the operational costs of green buildings that are more efficient than conventional buildings. The concept of green building is one of the efforts to save energy that can be applied to a building. The material of this study is primary data by distributing questionnaires to respondents using voluntary sampling techniques. In this study, there are 8 independent variables consisting of 5 attribute variables and 3 respondent identity variables. This study aims to determine the criteria for visitors in choosing the most desirable green hotel. The results of this study are the results of green hotel research that is most sought after by visitors, namely hotels with quality luxury rooms, toiletries provided, visitors are required to improve the environment, there is the practice of using plastic on product packaging, and there is the use of lamps as well as energy-saving equipment. After further analysis of the demographics of respondents regarding the preference of the selected green hotel criteria for each respondent, and the results obtained at the time, gender, occupation and experience of staying in a green hotel together are not related to the involvement of the selected green hotel criteria chosen from each respondent. Abstrak. Skripsi ini membahas mengenai penentuan rancangan kriteria pengunjung dalam pemilihan hotel ramah lingkungan (green hotel) dengan menggunakan desain fractional factorial 2k-p dan choice sets kombinatorial pada metode Discrete Choice Experiment. Discrete Choice Experiment merupakan metode kuantitatif untuk menilai suatu preferensi seorang responden yang berbasis survei. Metode ini meminta responden untuk memilih pilihan yang diminati dari beberapa alternatif pilihan yang disediakan. Dengan metode ini penulis akan melakukan penerapan pada kasus pemilihan kriteria green hotel, karena saat ini di Amerika Serikat, para investor mulai melirik peluang green building sebagai investasi jangka panjang dikarenakan biaya operasional green building yang lebih hemat dibandingkan bangunan konvensional. Konsep green building merupakan salah satu upaya penghematan energi yang dapat diterapkan pada suatu gedung. Bahan dari penelitian ini merupakan data primer dengan melakukan penyebaran kuesioner kepada responden dengan menggunakan teknik sampling sukarela. Pada penelitian ini, terdapat 8 variabel independen yang terdiri dari 5 variabel atribut dan  3 variabel identitas responden. Penelitian ini bertujuan untuk mengetahui kriteria pengunjung dalam memilih green hotel yang paling diminati. Hasil dari penelitian ini adalah didapatkan kriteria green hotel yang paling diminati oleh pengunjung yaitu hotel dengan kualitas kamar mewah, perlengkapan mandi disediakan, pengunjung diwajibkan untuk menjaga lingkungan, ada praktik penggunaan plastik pada kemasan produk, dan ada penggunaan lampu juga peralatan hemat energi. Setelah itu dilakukan analisis lanjutan mengenai pengaruh dari demografi responden terhadap banyaknya keterpilihan kriteria green hotel terpilih pada setiap responden, dan diperoleh hasil bahwa usia, jenis kelamin, pekerjaan dan pengalaman menginap di green hotel secara bersama-sama tidak berpengaruh terhadap banyaknya keterpilihan kriteria green hotel terpilih dari setiap responden.


Author(s):  
Anders Dugstad ◽  
Kristine M. Grimsrud ◽  
Gorm Kipperberg ◽  
Henrik Lindhjem ◽  
Ståle Navrud

AbstractSensitivity to scope in nonmarket valuation refers to the property that people are willing to pay more for a higher quality or quantity of a nonmarket public good. Establishing significant scope sensitivity has been an important check of validity and a point of contention for decades in stated preference research, primarily in contingent valuation. Recently, researchers have begun to differentiate between statistical and economic significance. This paper contributes to this line of research by studying the significance of scope effects in discrete choice experiments (DCEs) using the scope elasticity of willingness to pay concept. We first formalize scope elasticity in a DCE context and relate it to economic significance. Next, we review a selection of DCE studies from the environmental valuation literature and derive their implied scope elasticity estimates. We find that scope sensitivity analysis as validity diagnostics is uncommon in the DCE literature and many studies assume unitary elastic scope sensitivity by employing a restrictive functional form in estimation. When more flexible specifications are employed, the tendency is towards inelastic scope sensitivity. Then, we apply the scope elasticity concept to primary DCE data on people’s preferences for expanding the production of renewable energy in Norway. We find that the estimated scope elasticities vary between 0.13 and 0.58, depending on the attribute analyzed, model specification, geographic subsample, and the unit of measurement for a key attribute. While there is no strict and universally applicable benchmark for determining whether scope effects are economically significant, we deem these estimates to be of an adequate and plausible order of magnitude. Implications of the results for future DCE research are provided.


Sign in / Sign up

Export Citation Format

Share Document