Controlling for the effects of information in a public goods discrete choice model

Mikolaj Czajkowski, Nick Hanley and Jacob LaRiviere

No 2014-04, Discussion Papers in Environment and Development Economics from University of St. Andrews, School of Geography and Sustainable Development

Abstract: This paper develops a reduced form method of controlling for differences in information sets of subjects in public good discrete choice models, using stated preference data. The main contribution of our method comes from accounting for the effect of information provided during a survey on the mean and the variance of individual-specific scale parameters. In this way we incorporate both scale heterogeneity as well as observed and unobserved preference heterogeneity to investigate differences across an d within information treatments. Our approach will also be useful to researchers who want to combine stated preference data sets while controlling for scale differences. We illustrate our approach using the data from a discrete choice experiment study of a biodiversity conservation program and find that the mean of individual -specific scale parameters and its variance in the sample is sensitive to the information set provided to the respondents.

Keywords: information; uncertainty; choice modelling; information effects; scale; scale heterogeneity; G-MNL; combined datasets (search for similar items in EconPapers)
JEL-codes: C51 D03 D61 D83 Q51 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2014-07
New Economics Papers: this item is included in nep-dcm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Related works:
Journal Article: Controlling for the Effects of Information in a Public Goods Discrete Choice Model (2016)
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