BENC seminar, 30 November, 2015, 4:30pm, DUBS 240

Speaker: Professor Susan Chilton at Newcastle University   

Title: "Strategic Behavior in Choice Experiments" (Carson, K.S., Chilton, S.M., Hutchinson, W.G. & Scarpa, R.)

Date & Time: 30th November (Monday), 4:30-5:45 PM

Venue: Durham University Business School , room 240

Abstract:

In this paper we set up a three-stage experimental and theoretical framework to investigate strategic behaviour and design induced status quo bias in choice experiments. The research demonstrates that: (1) Repeated multiple choice experiments are not demand revealing.  Thus, they will not generate reliable estimates of willingness to pay.  (2) Most non-demand revealing choices are for the second-best option in a choice set.  Consistent with the predictions of voting theory, these choices of the second-best option occur when there is an undesirable third option in a choice set.  (3) As a result of the mathematics of combinatorial choice set design, the status quo option frequently occupies the second-best position in a choice set. (4) Experimental subject choices of the status quo in the second-best position are consistent with theoretical predictions derived from the mathematics of combinatorial choice set design.  Although choice experiments as currently used in the field cannot be assumed to generate unbiased estimates of willingness to pay, this study demonstrates that the bias is of a predictable nature.

The speaker’s website: http://www.ncl.ac.uk/nubs/staff/profile/susan.chilton#tab_research

Last modified: Thu, 26 Nov 2015 14:19:04 GMT