Department of Economics and Business - Universitat Pompeu Fabra

Title:: Eliciting consumers preferences using stated preference discrete choice models: Contingent ranking versus choice experiment
Author:: Anna Merino
Date:: June 2003
Abstract:: The aim of this paper is twofold: firstly, to carry out a theoretical review of the most recent stated preference techniques used for eliciting consumers preferences and, secondly, to compare the empirical results of two dierent stated preference discrete choice approaches. They dier in the measurement scale for the dependent variable and, therefore, in the estimation method, despite both using a multinomial logit. One of the approaches uses a complete ranking of full-profiles (contingent ranking), that is, individuals must rank a set of alternatives from the most to the least preferred, and the other uses a first-choice rule in which individuals must select the most preferred option from a choice set (choice experiment). From the results we realize how important the measurement scale for the dependent variable becomes and, to what extent, procedure invariance is satisfied.
Keywords:: Stated preferences, contingent ranking, choice experiment
JEL codes:: D12, C42, C28, C93
Area of Research:: Labour, Public, Development and Health Economics
CRES Series number:: 31

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