A Review of Stated Choice Method

Junyi Shen

No 05-27, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper reviews Stated Choice Method (SCM), paying particular attentions on its theoretical background, application, empirical models, experimental design, and procedure to execute. The review suggests that comparing to other stated preference (SP) methods, SCM has a major advantage that it meets the objective of a stated preference analysis to simulate actual consumer behavior by allowing simultaneous evaluations of a number of alternatives or a choice between alternatives. Some advanced models based on the degrees of relaxation of the Independently and Identically Distributed (IID) assumption on error terms are introduced. More complex model seems to be more plausible than relatively simple specifications. Two tests for nested and non-nested models are also discussed to help judge that one model is superior to another model. Finally, this paper introduces the procedure of executing a Stated Choice (SC) experiment.

Keywords: Stated Choice Method (SCM); Stated Preference (SP) method; Independent and Identical Distribution (IID); Extreme Value type I (EV1) distribution (search for similar items in EconPapers)
JEL-codes: C35 C81 C93 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2005-10
New Economics Papers: this item is included in nep-dcm and nep-ecm
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Citations: View citations in EconPapers (10)

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