Designs Efficiency for Non-market Valuation with Choice Modelling: How to Measure It, What to Report and Why

John M. Rose () and Riccardo Scarpa ()
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John M. Rose: ITLS -- University of Sydney, http://www.itls.usyd.edu.au

Working Papers in Economics from University of Waikato, Department of Economics

Abstract: We review the basic principles for the evaluation of design efficiency in discrete choice modelling with a focus on efficiency of WTP estimates from the multinomial logit model. The discussion is developed under the realistic assumption that researchers can plausibly define a prior on the utility coefficients. Some new measures of design performance in applied studies are proposed and their rationale discussed. An empirical example based on the generation and comparison of fifteen separate designs from a common set of assumptions illustrates the relevant considerations to the context of non-market valuation, with particular emphasis placed on C-efficiency. Conclusions are drawn for the practice of reporting in non-market valuation and for future work on design research.

Keywords: experimental design; multinomial logit; willingness to pay; choice modelling; C-efficiency (search for similar items in EconPapers)
JEL-codes: C25 Q51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-dcm
Date: 2007-10-31
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