Modeling Hidden Alternatives in Random Utility Models: An Application to "Don’t Know" Responses in Contingent Valuation

Steven B Caudill and Peter Groothuis

Land Economics, 2005, vol. 81, issue 3

Abstract: Wedevelop a multinomial logitmodel with missing information that can be used to test for hidden alternatives in random utility models and contingent valuation analysis. To illustrate our latentchoice technique, we focus on the “don’t know” responses in dichotomous choice contingent valuation questions. In this version of the latent-choice model, we probabilistically reassign “don’t know” responses to either the “yes” or “no” categories (or leave them in the “don’t know” category), if indicated by the data. We find that in our two studies a statistically significant number of the “don’t know” responses are actually “no” responses.

JEL-codes: C25 Q26 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (16)

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Working Paper: Modeling Hidden Alternatives in Random Utility Models: An Application to Don’t Know Responses in Contingent Valuation (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:81:y:2005:i:3:p445-454

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