Choke price bias in choice experiments

Morkbak, Morten Raun, Christensen, Tove and Gyrd-Hansen, Dorte (2010) Choke price bias in choice experiments. Environmental & Resource Economics, 45 4: 537-551. doi:10.1007/s10640-009-9327-z


Author Morkbak, Morten Raun
Christensen, Tove
Gyrd-Hansen, Dorte
Title Choke price bias in choice experiments
Journal name Environmental & Resource Economics   Check publisher's open access policy
ISSN 0924-6460
Publication date 2010-04-01
Sub-type Article (original research)
DOI 10.1007/s10640-009-9327-z
Volume 45
Issue 4
Start page 537
End page 551
Total pages 15
Place of publication Netherlands
Publisher Springer Netherlands
Language eng
Abstract This paper reports on the results from a split sample choice experiment, where the effect of changing the maximum level of the cost attribute is investigated. The hypothesis was that changing the maximum price level would either give rise to an income effect or have no effect on consumers' preferences. This was tested in the framework of a valuation study of different quality characteristics of minced pork. The data was analysed using a mixed logit error component model, which accounts for correlation in the unobserved part of the utility. Results suggest that the size of the maximum price level does matter, and that changing the maximum price level has a statistically significant effect on both the general preferences structure and the WTP estimates. Hence, researchers should be very careful when defining not only the range of the price attribute but also the maximum level of the price attribute.
Keyword Bias
Choke price
Cost attribute
Discrete choice
Income effect
Willingness-to-pay
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Unknown

Document type: Journal Article
Sub-type: Article (original research)
Collections: ERA 2012 Admin Only
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