Effects of payment vehicle non-attendance in choice experiments on value estimates and the WTA–WTP disparity

Koetse, Mark J.

doi:10.1080/21606544.2016.1268979

Cited by 30 publications

(12 citation statements)

References 47 publications

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“…This phenomenon of attribute non-attendance, in which participants pay unequal amounts of attention to different attributes in choice experiments, has recently received considerable attention in economics (e.g Koetse 2017;Campbell et al 2011). …”

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confidence: 99%

Addressing awareness gaps in environmental valuation: choice experiments with citizens in the Inner Forth, Scotland

2019

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Managed realignment of shorelines to manage floods and restore wetland can be difficult to implement without the support and involvement of local communities. Ecosystem service valuation tools, such as choice experiments, can be used to engage citizens in planning these sustainable transitions, yet citizens need to know their local shoreline and the pressures it is facing. Otherwise, people's ability to participate in local governance and to value potential changes is limited. The aim of this study is to identify and address awareness gaps that would hinder informed participation in a choice experiment: we address awareness gaps through deliberative interventions in a workshop setting, and by measuring the impact of deliberation through a comparison of choice experiment results performed before and after each stage of deliberation with citizens living on the shores of the Inner Forth estuary in Scotland. We estimate separate choice models for each of the choice experiments and find that deliberation increases both the resistance to 'status quo' and support for landscape-scale managed realignment of the shoreline. The deliberative interventions helped to identify clearer shoreline priorities and reduce contradictory patterns in shoreline preference. After gaining experience and deliberation, we find participants to become more selective: willingness to pay decreases substantially and model performance improves (slightly). Preferences diverge after learning about shoreline issues, whereas discussion converges preferences for the two most important shoreline attributes. These findings suggest that deliberative valuation not only shapes citizens' attitudes towards shoreline management but also improves the quality of citizen engagement in the delivery of sustainable transitions.

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confidence: 99%

Addressing awareness gaps in environmental valuation: choice experiments with citizens in the Inner Forth, Scotland

2019

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“…Another trade-off is regarding the use of the stated-preference data, which can estimate choices in a hypothetical scenario but may produce overstated demand (Koetse, 2017). The trade-off between these two approaches reveals the opportunity to develop a hybrid method that combines the advantages of both.…”

Section: Resultsmentioning

confidence: 99%

Preference-Based Revenue Optimization for App-Based Lifestyle Membership Plans

Pratikto¹,

Julianto²,

Susanto³

2021

JITI

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The demand for a product is rooted in the consumers’ needs and preferences. Therefore, a pricing optimization model will be more valid if the demand function is represented under this basic notion. A preference-based revenue optimization model for an app-based lifestyle membership program is developed and solved in this research. The model considers competitor products and cannibalization effect from products in other fare-class, where both are incorporated using a preference-based demand function. The demand function was derived through a randomized first choice simulation that converts individual utility values into personal choices based on the random parameter logit model. Cannibalizing products are considered as competing products in the simulation scenario. In the pricing optimization, two and three fare classes based on the membership period are considered. The corresponding pricing optimization problem is a mixed-integer nonlinear programming problem with a solution-dependent objective function. Using enumeration, the three-fare-class optimal prices of Rp420,000, Rp300,000, and Rp60,000 for 12-month, 6-month, and 1-month membership, respectively, are better than those of the two-fare-class. Under this policy, the estimated total revenue is Rp30.56 billion, 41.74% greater than that of the current condition.

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“…However, attribute non-importance is unlikely to be the case of the payment vehicle as individuals are expected to always care about the cost of an item, despite not attending to it in a specific choice context. Therefore, for the payment vehicle, non-attendance and non-importance are theoretically unconfounded (Koetse, 2017). We focused on three possible ANA strategies: ignoring the monthly monetary costs, ignoring weekly labour requirements, or ignoring both.…”

Section: Equality Constrained Latent Class Modelmentioning

confidence: 99%

Using choice modelling to identify popular and affordable alternative interventions for schistosomiasis in Uganda

2022

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Schistosomiasis is caused by a vector-borne parasite, commonly found in low- and middle-income countries. People become infected by direct contact with contaminated water through activities such as collecting water, bathing and fishing. Water becomes contaminated when human waste is not adequately contained. We administered a discrete choice experiment to understand community preferences for interventions that would reduce individuals' risk of contracting, or transmitting, Schistosoma mansoni. These focused on water access, sanitation and hygiene (WASH) interventions. We compared interventions that target behaviours that mainly put oneself at higher risk versus behaviours that mainly put others at risk. We used two payment vehicles to quantify what individuals are willing to give up in time and/or labour for interventions to be implemented. Key findings indicate that new sources of potable water and fines on open defecation are the highest valued interventions.

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Effects of payment vehicle non-attendance in choice experiments on value estimates and the WTA–WTP disparity

Cited by 30 publications

References 47 publications

Addressing awareness gaps in environmental valuation: choice experiments with citizens in the Inner Forth, Scotland

Addressing awareness gaps in environmental valuation: choice experiments with citizens in the Inner Forth, Scotland

Preference-Based Revenue Optimization for App-Based Lifestyle Membership Plans

Using choice modelling to identify popular and affordable alternative interventions for schistosomiasis in Uganda

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