How wrong can you be? Implications of incorrect utility function specification for welfare measurement in choice experiments

Torres Figuerola, Catalina Maria; Hanley, Nick; Riera Font, Antoni

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dc.contributor.author	Torres Figuerola, Catalina Maria
dc.contributor.author	Hanley, Nick
dc.contributor.author	Riera Font, Antoni
dc.date.accessioned	2018-10-26T17:16:08Z
dc.identifier.uri	http://hdl.handle.net/11201/148305
dc.description.abstract	Despite the vital role oftheutilityfunctioninwelfaremeasurement,theimplicationsof workingwithincorrectutilityspecificationshavebeenlargelyneglectedinthechoice experimentsliterature.Thispaperaddressestheimportanceofspecificationwitha specialemphasisontheeffectsofmistakenassumptionsaboutthemarginalutilityof income.MonteCarloexperimentswereconductedusingdifferentfunctionalformsof utility togeneratesimulatedchoices.Multi-NomialLogitandMixedLogitmodelswere then estimatedonthesechoicesundercorrectandincorrectassumptionsaboutthe true,underlyingutilityfunction.Estimatedwillingnesstopaymeasuresfromthese choice modelingresultsarethencomparedwiththeequivalentmeasuresdirectly calculatedfromthetrueutilityspecifications.Resultsshowthatfortheparameter values andfunctionalformsconsidered,acontinuous-quadraticoradiscrete-linear attributespecificationisagoodoptionregardlessofthetrueeffectstheattributehason utility. Wealsofindthatmistakenassumptionsaboutpreferencesovercostsmagnify attributemis-specificationeffects
dc.format	application/pdf
dc.relation.isformatof	Versió postprint del document publicat a: https://doi.org/10.1016/j.jeem.2010.11.007
dc.relation.ispartof	Journal of Environmental Economics and Management, 2011, num. 62, p. 111-121
dc.subject.classification	311 - Estadística
dc.subject.classification	Ciències de la salut
dc.subject.classification	33 - Economia
dc.subject.other	311 - Statistics as a science. Statistical theory
dc.subject.other	Medical sciences
dc.subject.other	33 - Economics. Economic science
dc.title	How wrong can you be? Implications of incorrect utility function specification for welfare measurement in choice experiments
dc.type	info:eu-repo/semantics/article
dc.type	info:eu-repo/semantics/acceptedVersion
dc.date.updated	2018-10-26T17:16:08Z
dc.date.embargoEndDate	info:eu-repo/date/embargoEnd/2075-01-01
dc.embargo	2075-01-01
dc.subject.keywords	Utility Analysis
dc.subject.keywords	economic efficiency
dc.rights.accessRights	info:eu-repo/semantics/embargoedAccess
dc.identifier.doi	https://doi.org/10.1016/j.jeem.2010.11.007