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The Status Quo in Discrete Choice Experiments: Is It Relevant?

Lookup NU author(s): Emeritus Professor Ken Willis, Dr Neil Adrian Powe

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This is the authors' accepted manuscript of an article that has been published in its final definitive form by World Scientific Publishing Co. Pte. Ltd, 2020.

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Abstract

An issue in environmental economics is how respondents make choices in discrete choice experiments (DCEs), and whether different strategies impact on the reliability of willingness-to-pay (WTP) results. Do individuals make choices with reference to their status quo (SQ) position, or can they make simulated market choices amongst only hypothetical scenarios? This study uses a split sample to test whether the inclusion or exclusion of the SQ on a choice card in DCEs affects the WTP estimates, based on visitors’ preferences for tourist facilities at Kenyir Lake, Malaysia. The results indicate little difference between both samples in terms of goodness-of-fit, size and significance of the attribute coefficients, and WTP estimates for the Conditional Logit (CL) and Mixed Logit (MXL) models.

Publication metadata

Author(s): Wan Norhadayah WM, Willis K, Powe N

Publication type: Article

Publication status: Published

Journal: The Singapore Economic Review

Year: 2020

Volume: 65

Issue: 2

Pages: 507-532

Print publication date: 01/03/2020

Online publication date: 25/02/2019

Acceptance date: 17/09/2018

Date deposited: 02/03/2019

ISSN (print): 0217-5908

ISSN (electronic): 1793-6837

Publisher: World Scientific Publishing Co. Pte. Ltd

URL: https://doi.org/10.1142/S0217590819500036

DOI: 10.1142/S0217590819500036

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