Information, Random Regret Minimisation, Random Utility Maximisation: Willingness to pay for Renewable Energy

Alberto Longo and Marco Boeri

No 182670, 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia from European Association of Agricultural Economists

Abstract: We investigate how different levels of information affect respondents’ preferences as well as choice behaviour in choice experiments by analysing respondents’ choices using two choice paradigms: the Random Utility Maximisation (RUM) and the Random Regret Minimization (RRM). The RRM offers a tractable, regret-based model complementary to the dominant RUM. Analysing choice related to hypothetical programmes for the promotion of renewable energy, we find that varying the level of information does not affect preferences and scale, whilst it does affect the choice paradigm. Additional information increases the probability that a respondent’s choices are better explained by the RUM than the RRM.

Keywords: Consumer/Household Economics; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 13
Date: 2014-08
New Economics Papers: this item is included in nep-dcm, nep-ene, nep-env and nep-upt
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae14:182670

DOI: 10.22004/ag.econ.182670

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