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

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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


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