Product availability in discrete choice experiments with private goods

Chavez, Daniel; Palma, Marco A.; Nayga, Rodolfo M.; Mjelde, James W.

doi:10.1016/j.jocm.2020.100225

Cited by 10 publications

(5 citation statements)

References 91 publications

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“…Given the evidence pointing to the existence of hypothetical bias in stated preference studies, non‐hypothetical versions of CE have emerged in the literature. It is, however, not always possible to conduct CE studies non‐hypothetically in real markets (Chavez et al 2020). Hence, the fact that we found VR, after considering simulator sickness, may mitigate hypothetical bias is important.…”

Section: Discussionmentioning

confidence: 99%

On the Use of Virtual Reality in Mitigating Hypothetical Bias in Choice Experiments

Fang¹,

Nayga²,

West³

et al. 2020

American J Agri Economics

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Choice experiments have been extensively used in many stated preference studies and disciplines. In order to give external validity to stated preferences, participants must behave the same in an experiment setting as they do in reality. The difference between a decision made in a real experiment and a hypothetical experiment is commonly attributed to "hypothetical bias." In this paper, we investigate whether virtual reality can reduce hypothetical bias in choice experiments. We conducted a set of experiments using the Food and Drug Administration's new Nutrition Facts Label for yogurts. Participants were randomly assigned to non-hypothetical and hypothetical experiments, which differed in terms of visual presentations of the product in question: text, picture, and a virtual grocery store. Given the absence of real markets for the new label at the time of the research, we approximate the real market with a binding choice in our non-hypothetical experiments. Our results suggest that although the hypothetical bias with virtual reality is not statistically significantly different from those using text or picture, it is the smallest. Among participants who did not exhibit high simulator discomfort, results suggest that virtual reality can significantly reduce hypothetical bias in choice experiments.

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Section: Discussionmentioning

confidence: 99%

On the Use of Virtual Reality in Mitigating Hypothetical Bias in Choice Experiments

Fang¹,

Nayga²,

West³

et al. 2020

American J Agri Economics

Self Cite

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“…When properly designed and executed, presenting a trade-off of choices, the CE improves consumer behaviour in the market (Luce and Tukey, 1964;Liebe et al, 2019). Other studies confirm these results (Calegari et al, 2018;Chavez et al, 2020).…”

Section: Conceptual Backgroundmentioning

confidence: 71%

Choice experiment to assess consumer attributes for a pharmaceutical product

Bica¹,

Martins

Belleza³

et al. 2023

IJPHM

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Purpose This study aims to identify the appropriate combination of attributes that must be present to deliver value in a new product for a pharmaceutical enterprise. Design/methodology/approach The application object was the Metronidazole analytical standard, using choice experiments to product attributes and price. Findings The practical results indicate that consumer value anticipation allows entry into the market with higher competitiveness. Originality/value Conceptually, it uses a value delivery approach, generally applied to large companies, in a case aimed at enterprises. In practice, for the enterprise studied, the value anticipation by the consumer allows entry into the market with higher competitiveness.

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“…They used an experimental design with four conditions: hypothetical (0% probability an alternative product is available), partial availability − low (33% probability an alternative product is available), partial availability − high (66% probability an alternative product is available), and full availability (100% probability an alternative product is available). Results from this study suggest that the practice of “all‐or‐nothing” choice incentivization (and thus all goods and services must be available for incentivization) may not be necessary (Chavez et al, 2020). In another study aimed at using incentives when there is a nonavailability of goods or services, Elias et al (2019) investigated preferences for compensating organ donations in an incentivized choice experiment through charitable donations.…”

Section: Related Literaturementioning

confidence: 98%

“…Although the existence of hypothetical bias is mostly not under dispute, hypothetical experiments are still conducted for a variety of reasons, including high costs and product availability (Chavez et al, 2020;Ellis et al, 2023). Hypothetical experiments can boast large sample sizes allowing for increased external validity in the form of large, representative samples, the lack of which is a major criticism of current economic experiments (Ellis et al, 2023).…”

Section: Incentivization In Economic Experimentsmentioning

confidence: 99%

“…Although some studies are starting to use lottery incentives in experiments (e.g., Mailu et al, 2021; Meiselman et al, 2022; Rommel et al, 2019; Witte et al, 2023), there is no systematic evaluation of the effectiveness of BRIS to recover valuations in the field of agricultural economics. Chavez et al (2020) investigate alternative methods to conduct incentivized choice experiments with only a varying number of product alternatives being available. They find that researchers could implement incentivized choice experiments without all product alternatives being available, provided participants are engaged with the experimental choice task.…”

Section: Related Literaturementioning

confidence: 99%

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Testing the effectiveness of lottery incentives in online experiments

Ahles,

Palma,

Drichoutis

2024

American J Agri Economics

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This article investigates the effectiveness of lottery incentive schemes for eliciting consumer valuations in large‐scale online experiments. We implement a fully incentivized condition within a geographically dispersed sample of consumers in which bids for a Criollo steak elicited by a Becker‐DeGroot‐Marschak mechanism are realized with certainty and the products are priority shipped in dry‐ice coolers. The fully incentivized condition is compared to between‐subject random incentivized schemes, in which only a fraction of subjects realize their choices. We tested two treatments with a 10% probability framed as a percentage or an absolute number of subjects, one treatment with a 1% probability, and a purely hypothetical reference condition. The results reveal that between‐subject random incentivized schemes with 10% and 1% payment probabilities are effective in eliciting valuations that are statistically indistinguishable from the fully incentivized scheme. In addition to finding insignificant statistical differences between 10% and 1% and the fully incentivized scheme, all incentivized conditions mitigate hypothetical bias, resulting in lower product valuations than the purely hypothetical condition. We contribute a novel methodological framework for conducting large‐scale experiments with geographically diverse and representative subjects, increasing the external validity and producing reliable valuations while significantly reducing financial and logistic constraints.

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Product availability in discrete choice experiments with private goods

Cited by 10 publications

References 91 publications

On the Use of Virtual Reality in Mitigating Hypothetical Bias in Choice Experiments

On the Use of Virtual Reality in Mitigating Hypothetical Bias in Choice Experiments

Choice experiment to assess consumer attributes for a pharmaceutical product

Testing the effectiveness of lottery incentives in online experiments

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