Incorrectly accounting for preference heterogeneity in choice experiments: Implications for welfare measurement

[EN] The impact of the approach used to describe preference heterogeneity on welfare measures has been widely studied by the academic community. However, the question as to the degree of error in welfare estimation from an inappropriate choice of empirical approach has not been addressed yet. In thi...

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Detalles Bibliográficos
Autores: Torres, Catalina M., Colombo, Sergio, Hanley, Nick
Tipo de recurso: artículo
Fecha de publicación:2014
País:España
Institución:Universitat Politècnica de València (UPV)
Repositorio:RiuNet. Repositorio Institucional de la Universitat Politécnica de Valéncia
Idioma:inglés
OAI Identifier:oai:riunet.upv.es:10251/118039
Acceso en línea:https://riunet.upv.es/handle/10251/118039
Access Level:acceso abierto
Palabra clave:Experimentos de elección
Análisis Monte Carlo
Heterogeneidad de preferencias
Medidas de bienestar
Choice experiments
Monte Carlo analysis
Preference heterogeneity
Welfare measurement
Descripción
Sumario:[EN] The impact of the approach used to describe preference heterogeneity on welfare measures has been widely studied by the academic community. However, the question as to the degree of error in welfare estimation from an inappropriate choice of empirical approach has not been addressed yet. In this paper, we use Monte Carlo analysis to investigate this issue. Our overall conclusion is that, when analysts have difficulties in choosing the best approach relying on available statistical tests, smaller errors in welfare measures are likely to come from use of a latent class model.