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Methodological issues in choice experiments: Biasedness of willingness-to-pay estimates and attribute multidimensionality
ID Sever, Ivan (Author), ID Verbič, Miroslav (Mentor) More about this mentor... This link opens in a new window

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Abstract
Discrete choice experiments (DCEs) are a popular methodology for eliciting human preferences and willingness-to-pay (WTP) measures. However, there are a number of methodological challenges, such as choice task complexity, hypothetical bias and non-attendance to the choice attributes, which have been examined in the two surveys included in this dissertation. One survey was conducted at the School of Dental Medicine, University of Zagreb, to estimate patients’ WTP for dental care delivery at the school clinic and investigate the validity of derived estimates. Among the attributes included in a DCE, treatment explanation was on average the most valued attribute, followed by dental staff behavior, dental care provider and waiting time in the office. As patients often have diverse expectations and preferences for health care interventions, it is important to consider heterogeneity in their preferences when estimating WTP for health care. Mixed logit and latent class analyses detected a large heterogeneity in patients’ preferences. Four classes of patients with distinct preferences for dental care were identified. Older and/or more educated patients tended to give relatively less importance to treatment explanation, but were more attentive to interpersonal characteristics. Higher education was also associated with a higher propensity to substitute faculty dental care with private care providers. Different survey design features, such as the opt-out option and the selection of attributes and their levels, may affect the choice behavior of respondents and estimated utility weights. However, not giving an opt-out option to respondents did not affect the preferences for dental care delivery and response error variance. Furthermore, adding the cost attribute to a DCE task did not change the rank order of other attributes and their utility weights did not differ significantly, indicating that respondents were willing to trade off cost with other dental care attributes. However, adding the cost attribute increased the response error variance, which could be best explained by a higher cognitive burden from adding an extra attribute to the choice task. We did not find any strong evidence that the effect of including an extra cost attribute is any different from the expected effect of including any other choice attribute; therefore, its influence may not be as relevant as some of the previous studies may have suggested. Choice studies have shown that respondents often ignore one or more attributes when making choices and may ignore the cost attribute itself, thus precluding the calculation of marginal WTP values. The contingent valuation (CV) method directly estimates respondents’ WTP, thereby avoiding this issue. The DCE method yielded significantly higher welfare estimate for dental care than the CV method. While strategic behavior in direct WTP estimates was not evident, almost every second DCE respondent appears to have ignored the cost attribute, which may explain the discrepancy in welfare estimates between the two methods. The findings suggest that direct elicitation of WTP through the CV method produced more realistic estimates, and raise concerns about the derived WTP measures in DCE studies that did not consider non-attendance to the cost attribute during the estimation process. However, a typical CV study values a good as a whole and offers no information about the value of the individual attributes that comprise a good. To deal with this limitation, the CV task was accompanied by the best-worst choice (BWC) task which provided information used to derive the attribute-specific WTP values from the holistic WTP values estimated through the CV method. The proposed methodology could be a valuable alternative to traditional DCEs when the choice behavior of respondents raises concerns over the validity of estimated welfare measures. Choice contexts often cannot be easily described with a restricted number of attributes, which may lead to the omitted variable bias. On the other hand, asking respondents to evaluate large number of attributes imposes high cognitive burden and stimulates them to simplify the choice task, which may contribute to an increased error variance and affect the validity of utility estimates. Environmental valuation generally involves trade-offs between complex goods and services. How to describe a complex valuation context is an important consideration, and was investigated in a second survey that evaluated the preferences of trail users for different resource, social and managerial conditions in the Medvednica Nature Park. Two different choice experiments that differed in the provision of information about the recreational setting were designed. One DCE used multidimensional attributes to keep the number of choice attributes manageable for respondents, while considering all relevant aspects of visitors’ experience. The other DCE used a greater number of more specific, unidimensional, attributes to describe the same recreational setting, but implemented a partial profile design in which only a subset of attributes appeared in each choice set. Perceived difficulty of the choice task, self-reported choice certainty and choice consistency were similar across the two experiments. Heterogeneity in preferences and scale was detected in both experiments. Indications of non-compensatory behavior, and greater error variance among less experienced trail users were found in the partial profile experiment with more specific trail attributes, but not in the experiment with multidimensional attributes. Environmental conditions are often inter-related and as such cannot be simultaneously included in a DCE. A linked structural choice model was designed to deal with the correlated or causally-related DCE attributes as well as with the ambiguity when using multidimensional choice attributes, since respondents might be focused on different aspects of those attributes when making choices. A structural choice model was used to link the two choice experiments and investigate the amount of variability in multidimensional attributes (crowding on trail and intensity of road traffic, evaluated within the DCE) explained by each of its sub-dimensions (i.e. specific crowding-related conditions, evaluated within object case best-worst scaling (BWS) experiment). The findings indicate that visitors’ preferences for crowding were mostly influenced by perceptions of ‘trail use level’ and ‘noise from road traffic’. Our approach offers richer information to policy makers than other solutions to the attribute correlation/causality issues in complex choice studies, namely the exclusion of some relevant attributes or simply their aggregation into a single composite attribute.

Language:English
Keywords:discrete choice experiment, willingness-to-pay, choice attributes, cognitive difficulty, contingent valuation
Work type:Doctoral dissertation
Organization:EF - School of Economics and Business
Year:2018
PID:20.500.12556/RUL-104946 This link opens in a new window
Publication date in RUL:18.10.2018
Views:1621
Downloads:352
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Secondary language

Language:Slovenian
Title:Metodološka vprašanja pri odločitvenih poskusih: pristranskost ocene pripravljenosti na plačilo in večrazsežnost atributov
Abstract:
Poskusi diskretne izbire so priljubljena metodologija za pridobivanje preferenc ljudi in mer pripravljenost na plačilo. Vendar pa obstajajo številni metodološki izzivi, kot so kompleksnost naloge izbire, hipotetična pristranskost in nepoznavanje izbirnih atributov, ki so bili preučeni v dveh raziskavah, vključenih v to disertacijo. Na Stomatološki fakulteti Univerze v Zagrebu je bila opravljena raziskava, da bi ocenili pacientovo pripravljenost na plačilo za bolnišnično zobozdravstveno oskrbo v šolski kliniki in raziskali veljavnost izpeljanih ocen. Med atributi, vključenimi v poskus diskretne izbire, je bila razlaga zdravljenja v povprečju najbolj cenjen atribut, sledil je odnos zobozdravstvenega osebja, ponudnik zobozdravstva in čakalni čas. Ker imajo pacienti pogosto različna pričakovanja in preference za intervencije zdravstvenega varstva, je pomembno, da pri ocenjevanju PZP za zdravstveno varstvo upoštevamo heterogenost v njihovih preferencah. Mešani logistični model in model latentnih razredov sta zaznala veliko heterogenost pri željah pacientov. Model latentnih razredov je opazil štiri skupine bolnikov z različnimi preferencami za zobozdravstveno nego. Starejši in/ali bolj izobraženi pacienti so dajali sorazmerno manjši pomen razlagi zdravljenja, vendar so bili bolj pozorni na medosebne značilnosti. Visokošolska izobrazba je bila povezana tudi z večjo nagnjenostjo k nadomestitvi fakultetne zobozdravstvene oskrbe z zasebnimi ponudniki. Različne značilnosti zasnove raziskave, kot so možnost izključitve in izbira atributov ter njihovih ravni, lahko vplivajo na način izbire anketirancev in ocene parametrov koristnosti. Vendar pa pri anketirancih, ki opcije možnosti izključitve niso imeli, to ni vplivalo na preference v ponudbi zobozdravstvene oskrbe in na nepojasnjeno varianco modela. Poleg tega dodajanje stroškovnega atributa v poskusu diskretne izbire ni spremenilo vrstnega reda drugih atributov in njihove uteži koristnosti se niso bistveno razlikovale, kar pomeni, da so bili anketiranci pripravljeni zamenjati stroške z drugimi atributi zobozdravstvene oskrbe. Vendar pa je dodajanje stroškovnega atributa povečalo nepojasnjeno varianco modela, kar bi lahko najbolje pojasnili z višjo kognitivno obremenitvijo zaradi prisotnosti dodatnega atributa k izbirni nalogi. Nismo našli trdnega dokaza, da je učinek vključitve dodatnega stroškovnega atributa drugačen od pričakovanega učinka pri vključitvi kateregakoli atributa izbire, zato ta vpliv morda ni tako pomemben, kot so predlagale nekatere prejšnje študije. Študije s poskusi diskretne izbire so pokazale, da anketiranci pogosto ignorirajo enega ali več atributov, ko se odločajo in lahko zanemarijo sam stroškovni atribut, s čimer otežijo izračun mejnih vrednosti pripravljenosti na plačilo. Metoda kontingenčnega vrednotenja neposredno ocenjuje pripravljenost na plačilo, s čimer se izogne tej težavi. Metoda diskretne izbire je prinesla bistveno višjo oceno blaginje za zobozdravstveno oskrbo kot metoda kontingenčnega vrednotenja. Medtem ko ni bilo dokaza o strateškem vedenju pri neposrednih ocenah pripravljenosti na plačilo, je skoraj vsak drugi anketiranec v poskusu diskretne izbire zanemaril atribut stroškov, kar lahko razloži neskladnost v ocenah plačila med obema metodama. Ugotovitve kažejo, da je neposredna ocena pripravljenosti na plačilo prek kontingenčne metode pripeljala do bolj realnih ocen, kar pripelje do dvomov o izpeljanih ocenah pri študijah diskretne izbire, ki niso upoštevali nepoznavanja stroškovnega atributa med ocenjevalnim postopkom. Vendar tipična študija kontingenčnega vrednotenja vrednoti storitev kot celoto in ne ponuja nobenih informacij o vrednosti posameznih atributov, ki sestavljajo storitev. Za obravnavo te omejitve je kontingenčno nalogo spremljala naloga tipa najboljša-najslabša izbira, ki je zagotovila informacije, ki so bile uporabljene za pridobivanje vrednosti pripravljenosti na plačilo specifičnih atributov zobozdravstvene oskrbe iz celovitih vrednosti za zobozdravstveno oskrbo, ocenjenih s pomočjo kontingenčne metode. Predlagana metodologija bi lahko bila dragocena alternativa tradicionalnim poskusom diskretne izbire, ko bi obnašanje anketirancev pri izbiri povzročalo dvome glede veljavnosti mer pripravljenosti na plačilo. Konteksta izbire pogosto ni mogoče enostavno opisati z omejenim številom atributov, kar lahko privede do pristranskosti zaradi izpuščenih spremenljivk. Po drugi strani pa spraševanje anketirancev, da ocenijo veliko število atributov, nalaga visoko kognitivno breme in jih spodbuja k poenostavitvi izbirne naloge, kar lahko prispeva k večji nepojasnjeni varianci in vpliva na veljavnost ocen koristnosti. Okoljsko vrednotenje običajno vključuje kompromise med kompleksnimi dobrinami. Kako opisati zapleten kontekst vrednotenja je pomembno vprašanje, ki je bilo raziskano v drugi raziskavi, ki je ocenila preference uporabnikov poti za različne naravne, socialne in vodstvene pogoje v Naravnem parku Medvednica. Zasnovani sta bili dve različni izbirni nalogi, ki sta se razlikovali v zagotavljanju informacij o rekreativnem okolju. En poskus diskretne izbire je uporabil večrazsežne atribute, da bi število atributov za anketirance ostalo obvladljivo, ob upoštevanju vseh pomembnih vidikov izkušenj obiskovalcev. Drugi poskus diskretne izbire je uporabil več specifičnih, enorazsežnih atributov, ki opisujejo enako rekreativno okolje, vendar je vključil delno profilno zasnovo, v kateri se v vsakem izbirnem setu pojavlja le podskupina atributov. Opažena težavnost naloge izbire, samo-poročana gotovost izbire in doslednost izbire so bili podobni v obeh poskusih. Heterogenost v preferencah in obsegu je bila ugotovljena v obeh poskusih. Indikacije nekompenzacijskega vedenja in večja nepojasnjena varianca med manj izkušenimi uporabniki poti so bili najdeni v poskusu delnega profila z bolj specifičnimi atributi, ne pa v poskusu z večrazsežnimi atributi. Okoljski pogoji so pogosto medsebojno povezani in kot taki ne morejo biti istočasno vključeni v poskus diskretne izbire. Povezani model strukturne izbire je bil zasnovan tako, da se ukvarja s (vzročno) povezanimi atributi, kot tudi z večpomenskostjo pri uporabi večrazsežnih atributov izbire, saj se lahko anketiranci med izbiranjem osredotočajo na različne vidike teh atributov. Za povezavo dveh izbirnih poskusov smo uporabili model strukturne izbire in raziskali obseg spremenljivosti v večrazsežnih atributih (gneča na poti in intenzivnost cestnega prometa, ocenjeno v poskusu diskretne izbire), ki ga razlaga vsaka od njegovih razsežnosti (to so specifične razmere, povezane z gnečo, ocenjevane v poskusu najboljšega-najslabšega lestvičenja). Ugotovitve kažejo, da so bile preference obiskovalcev glede gneče pod vplivom percepcije “ravni uporabe poti” in “hrupa od prometne ceste”. Naš pristop ponuja bolj bogate informacije oblikovalcem politike od drugih rešitev glede problematike korelacije/vzročnosti med atributi pri kompleksnih poskusih izbire, in sicer izključitev nekaterih relevantnih atributov ali preprosto njihovo združevanje v en večrazsežni atribut.

Keywords:poskus diskretne izbire, pripravljenost na plačilo, atributi izbire, kognitivna zahtevnost, kontingenčno vrednotenje

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