Non-Market Valuation: Stated Preference Methods

The Oxford Handbook of the Economics of Food Consumption and Policy ◽

10.1093/oxfordhb/9780199569441.013.0008 ◽

2011 ◽

pp. 180-214 ◽

Cited By ~ 1

Author(s):

Fredrik Carlsson

Keyword(s):

Choice Experiment ◽

Stated Preference ◽

Main Idea ◽

Hypothetical Bias ◽

Single Individual ◽

Behavioral Aspects ◽

Attribute Levels ◽

Validity Tests ◽

Definition Of ◽

Non Market Valuation

The purpose of this article is to give a detailed description of the steps involved in designing a choice experiment and analyzing the responses. It also discusses a number of behavioral aspects of stated preference surveys, with an emphasis on hypothetical bias. It briefly presents the underlying economic model that is used to analyze discrete choices. The main idea of a choice experiment is often to estimate the welfare effects of changes in attributes. The article discusses the three important parts of the design of a stated preference survey, namely, definition of attributes and attribute levels, experimental design, and survey context, behavioral aspects, and validity tests. This article discusses the incentive properties of different choice formats, then looks at the empirical evidence on hypothetical bias, and finally at methods for reducing hypothetical bias. It mentions the importance of social context where the decision maker is not one single individual.

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Design of Discrete Choice Experiments

Oxford Research Encyclopedia of Economics and Finance ◽

10.1093/acrefore/9780190625979.013.91 ◽

2019 ◽

Cited By ~ 1

Author(s):

Deborah J. Street ◽

Rosalie Viney

Keyword(s):

Discrete Choice ◽

Choice Experiment ◽

Stated Preference ◽

Choice Experiments ◽

Individual Characteristics ◽

Discrete Choice Experiments ◽

Random Component ◽

Choice Sets ◽

Attribute Levels ◽

Choice Set

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.

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Improving Drinking Water Quality in South Korea: A Choice Experiment with Hypothetical Bias Treatments

Water ◽

10.3390/w12092569 ◽

2020 ◽

Vol 12 (9) ◽

pp. 2569

Author(s):

Adelina Gschwandtner ◽

Cheul Jang ◽

Richard McManus

Keyword(s):

South Korea ◽

Choice Experiment ◽

Latent Class ◽

Cost Benefit Analysis ◽

Stated Preference ◽

Cost Benefit ◽

Hypothetical Bias ◽

Sensitivity Analyses ◽

The Difference ◽

Water Treatments

The objective of this present study is to use choice experiments and an extensive cost-benefit analysis (CBA) to investigate the feasibility of installing two advanced water treatments in Cheongju waterworks in South Korea. The study uses latent class attribute non-attendance models in a choice experiment setting in order to estimate the benefits of the two water treatments. Moreover, it explores strategies to mitigate potential hypothetical bias as this has been the strongest criticism brought to stated preference methods to date. Hypothetical bias is the difference between what people state in a survey they would be willing to pay and what they would actually pay in a real situation. The study employs cheap talk with a budget constraint reminder and honesty priming with the latter showing more evidence of reducing potential hypothetical bias. The lower bound of the median WTP (willingness to pay) for installing a new advanced water treatment system is approximately $2 US/month, similar to the average expenditures for bottled water per household in South Korea. These lower bounds were found using bootstrapping and simulations. The CBA shows that one of the two treatments, granular activated carbon is more robust to sensitivity analyses, making this the recommendation of the study.

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Videos Improve Attention and Cheap Talk in Online Surveys

Frontiers of Economics in China ◽

10.54605/fec20210206 ◽

2021 ◽

Vol 16 (2) ◽

pp. 347-376

Author(s):

Jerrod Penn ◽

◽

Wuyang Hu ◽

Keyword(s):

Willingness To Pay ◽

Choice Experiment ◽

Stated Preference ◽

Cheap Talk ◽

Hypothetical Bias ◽

Control Group ◽

Online Surveys ◽

Participant Engagement ◽

Reducing Potential

Cheap Talk (CT) is a mainstay technique among stated preference practitioners to reduce Hypothetical Bias (HB). The usefulness of CT may be questionable in online surveys due to the limited control researchers have on participant engagement. In the context of an online choice experiment on hotels, we compare a control group of respondents who receives a CT script as a traditional passage of text versus a group who must answer an attention-check question to verify their comprehension of the script as well as another group who receives the CT script as a video and then answer the attention-check question. We find that compared to the control group, simply offering the attention-check question reduced willingness to pay (WTP), and those who answer the attention-check question correctly behaved differently to those who did not. Overall, video CT script is shown to improve attention and be more effective in reducing potential HB than a text-based script.

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A query theory account of a discrete choice experiment under oath

European Review of Agricultural Economics ◽

10.1093/erae/jbz026 ◽

2019 ◽

Vol 47 (3) ◽

pp. 1133-1172

Author(s):

Nathan P Kemper ◽

Jennie S Popp ◽

Rodolfo M Nayga

Keyword(s):

Discrete Choice Experiment ◽

Discrete Choice ◽

Choice Experiment ◽

Stated Preference ◽

Choice Experiments ◽

Hypothetical Bias ◽

Discrete Choice Experiments ◽

Thought Processes ◽

Stated Preference Methods ◽

Ex Ante

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.

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Using a stated preference discrete choice experiment to assess societal value from the perspective of decision-makers in Europe. Does it work for rare diseases?

Health Policy ◽

10.1016/j.healthpol.2018.11.015 ◽

2019 ◽

Vol 123 (2) ◽

pp. 152-158 ◽

Cited By ~ 3

Author(s):

J. López-Bastida ◽

J.M. Ramos-Goñi ◽

I. Aranda-Reneo ◽

M. Trapero-Bertran ◽

P. Kanavos ◽

...

Keyword(s):

Discrete Choice Experiment ◽

Discrete Choice ◽

Rare Diseases ◽

Choice Experiment ◽

Stated Preference ◽

Decision Makers ◽

Societal Value

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The Specificity of the Interpretation of Freedom by S. Kierkegaard in the Context of Modernization of Christianity

Релігійна Свобода ◽

10.32420/rs.2016.19.1.922 ◽

2016 ◽

Vol 1 (19) ◽

pp. 52-54

Author(s):

Serhii Shevchenko

Keyword(s):

Main Idea ◽

Natural Sciences ◽

Humanistic Psychology ◽

Creative Transformation ◽

Definition Of ◽

Existential Problem ◽

Qualitative Changes

Existential-humanistic psychology has started the tradition of the creative transformation of classical-existentialist ideas in the practice of their involvement and application in psychology and psychotherapy. The source of these qualitative changes in the psychology of the twentieth and early XXI centuries was, in particular, the multifaceted creativity and ideas of S. Kierkegaard. His religious anthropology was rooted not only in Christology, but also in psychology. But psychology does not become a means of indulgence for a little foolish person, but a way to show her what she had not known about herself before. Contrary to the natural sciences of the time, his method did not set human boundaries, because it proceeded from the fact that the horizons of her hopes are, in principle, endless and the purpose of each person is to become equal with him. "WITH. Kierkegorov's main idea is, "writes M. Biergoso," that a person should be understood as a relationship: a constant attitude towards himself, his environment, and God. This is the most successful definition of the inseparable triad of the basic existential problem ..., which defines Kierkegaard's thinking as a whole "

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Understanding uptake of digital health products: Methodology tutorial for a Discrete Choice Experiment using a Bayesian efficient design (Preprint)

10.2196/preprints.32365 ◽

2021 ◽

Author(s):

Dorothy Szinay ◽

Rory Cameron ◽

Felix Naughton ◽

Jennifer A. Whitty ◽

Jamie Brown ◽

...

Keyword(s):

Discrete Choice Experiment ◽

Discrete Choice ◽

Choice Experiment ◽

Stated Preference ◽

Digital Health ◽

Revealed Preferences ◽

Quantitative Methodology ◽

Efficient Design ◽

Trade Offs ◽

Health Products

UNSTRUCTURED Understanding the preferences of potential users of digital health products is beneficial for digital health policy and planning. Stated preference methods could help elicit individuals’ preferences in the absence of observational data. A discrete choice experiment (DCE) is a commonly used stated preference method; a quantitative methodology that argues that individuals make trade-offs when engaging in a decision by choosing an alternative of a product or service that offers the greatest utility, or benefit. This methodology is widely used in health economics in situations where revealed preferences are difficult to collect but is much less used in the field of digital health. This article outlines the stages involved in developing a discrete choice experiment. As a case study, it uses the application of a DCE for revealing preferences in targeting the uptake of smoking cessation apps. It describes the establishment of attributes, the construction of choice tasks of two or more alternatives, and the development of the experimental design. This tutorial offers a guide for researchers with no prior knowledge of this research technique.

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A qualitative study to identify critical attributes and attribute-levels for a Discrete Choice Experiment on oral Pre-Exposure Prophylaxis (PrEP) delivery among young people in Cape Town and Johannesburg, South Africa.

10.21203/rs.3.rs-39709/v2 ◽

2020 ◽

Author(s):

Janan Janine Dietrich ◽

Millicent Atujuna ◽

Gugulethu Tshabalala ◽

Stefanie Hornschuh ◽

Mamakiri Mulaudzi ◽

...

Keyword(s):

South Africa ◽

Young People ◽

Choice Experiment ◽

User Preferences ◽

Dosing Regimen ◽

On Demand ◽

Study Team ◽

Attribute Levels ◽

Depth Interviews ◽

Oral Prep

Abstract Background The uptake and adherence of daily oral PrEP has been poor in high-risk populations in South Africa including young people. We used qualitative research methods to explore user preferences for daily and on-demand oral PrEP use among young South Africans, and to inform the identification of critical attributes and attribute-levels for quantitative analysis of user preferences, i.e. a discrete choice experiment (DCE). MethodsData were collected between September and November 2018 from eight group discussions and 20 in-depth interviews with young people 13 to 24 years in Cape Town and Johannesburg. Using a convenience sampling strategy, participants were stratified by sex and age. Interviewers used a semi-structured interview guide to discuss several attributes (dosing regimen, location, costs, side effects, and protection period) for PrEP access and use. Groups discussions and in-depth interviews were audio-recorded, transcribed verbatim and translated to English. We used framework analysis to explore context-specific attributes and attribute-levels for delivering oral PrEP in South Africa. The adolescent community advisory board, expert and study team opinions were consulted for the final DCE attributes and levels. ResultsWe enrolled 74 participants who were 51% (n=38/74) male, had a median age of 18.5 [Interquartile range=16-21.25] years, 91% (n=67/74) identified as heterosexual and 49% (n=36/74) had not completed 12th grade education. Using the qualitative data, we identified five candidate attributes including (1) dosing regimen, (2) location to get PrEP, (3) cost, (4) route of administration and (5) frequency. After discussions with experts and the study team, we revised the DCE to include the following five attributes and levels: dosing regime: daily, and on-demand PrEP; location: private pharmacy, public clinic, mobile clinic, ATM); cost: free-of-charge, R50 (~2GBP), R265 (~12GBP); side effects: nausea, headache, rash; and duration of protection: fulltime protection versus when PrEP is used). ConclusionsThere is limited literature on qualitative research methods describing the step-by-step process of developing a DCE for PrEP in adolescents, especially in resource-constrained countries. We provide the process followed for the DCE technique to understand user preferences for daily and on-demand oral PrEP among young people in South Africa.

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