Making use of respondent reported processing information to understand attribute importance: a latent variable scaling approach

In recent years we have seen an explosion of research seeking to understand the role that rules and heuristics might play in improving the predictive capability of discrete choice models, as well as delivering willingness to pay estimates for specific attributes that may (and often do) differ significantly from estimates based on a model specification that assumes all attributes are relevant. This paper adds to that literature in one important way—it explicitly recognises the endogeneity issues raised by typical attribute non-attendance treatments and conditions attribute parameters on underlying unobserved attribute importance ratings. We develop a hybrid model system involving attribute processing and outcome choice models in which latent variables are introduced as explanatory variables in both parts of the model, explaining the answers to attribute processing questions and explaining heterogeneity in marginal sensitivities in the choice model. The resulting empirical model explains how lower latent attribute importance leads to a higher probability of indicating that an attribute was ignored or that it was ranked as less important, as well as increasing the probability of a reduced value for the associated marginal utility coefficient in the choice model. The model does so by treating the answers to information processing questions as dependent rather than explanatory variables, hence avoiding potential risk of endogeneity bias and measurement error

Understanding Business Travel Time and Its Place in the Working Day

This article argues that there is a need to understand business travel time in the context of the wider organization of work time. It considers why travel time use is potentially changing with the use of mobile technologies by the increasing number of individuals engaged in ‘knowledge work’, and examines existing evidence that indicates that travel time use is part of a wider work-related ‘taskscape’. However, it not only considers material productive output, but suggests that travel time as ‘time out’ from work-related activities also plays a vital role for employees. It also suggests that business travel time use that is not of benefit to the employer may not be at the employer's expense. This is contrasted with the assumptions used in UK transport appraisal. Data gathered from the autumn 2004 wave of the National Rail Passenger Survey (GB) is used to illustrate some key issues concerning productivity and ‘anti-activity’. A case study of an individual business traveller then points towards the need for a new approach to exploring the role played by travel time in the organization of work practices to be considered. © 2008, Sage Publications. All rights reserved

How to make complexity look simple? Conveying ecosystems restoration complexity for socio-economic research and public engagement

Ecosystems degradation represents one of the major global challenges at the present time, threating people’s livelihoods and well-being worldwide. Ecosystem restoration therefore seems no longer an option, but an imperative. Restoration challenges are such that a dialogue has begun on the need to re-shape restoration as a science. A critical aspect of that reshaping process is the acceptance that restoration science and practice needs to be coupled with socio-economic research and public engagement. This inescapably means conveying complex ecosystem’s information in a way that is accessible to the wider public. In this paper we take up this challenge with the ultimate aim of contributing to making a step change in science’s contribution to ecosystems restoration practice. Using peatlands as a paradigmatically complex ecosystem, we put in place a transdisciplinary process to articulate a description of the processes and outcomes of restoration that can be understood widely by the public. We provide evidence of the usefulness of the process and tools in addressing four key challenges relevant to restoration of any complex ecosystem: (1) how to represent restoration outcomes; (2) how to establish a restoration reference; (3) how to cope with varying restoration time-lags and (4) how to define spatial units for restoration. This evidence includes the way the process resulted in the creation of materials that are now being used by restoration practitioners for communication with the public and in other research contexts. Our main contribution is of an epistemological nature: while ecosystem services-based approaches have enhanced the integration of academic disciplines and non-specialist knowledge, this has so far only followed one direction (from the biophysical underpinning to the description of ecosystem services and their appreciation by the public). We propose that it is the mix of approaches and epistemological directions (including from the public to the biophysical parameters) what will make a definitive contribution to restoration practice

Measuring total factor productivity of airports-- an index number approach

There is an increasing trend towards corporatisation and privatisation of airports in an effort to improve performance. However, the normal financial reporting requirements associated with these forms of organisation are not sufficient indicators of the performance of airports since profitability can be more a function of the exercise of market power than a sign of productive efficiency. Also, there are concerns that efforts to regulate the prices charged by airports can result in under-investment and declining service standards. This makes it important to monitor the cost-efficiency, cost-effectiveness and service-effectiveness of airports. There is a growing literature on these topics, but so far there has been little attempt to apply the concepts of total factor productivity to the airport sector. We use a non-parametric index number method to illustrate how such a global measure can be used to investigate the role of disaggregated performance measures that often are very useful to managers and to those monitoring airport operations.airport performance measures total factor productivity

Monitoring choice task attribute attendance in non-market valuation of multiple park management services: Does it matter?

Land management in Alpine parks provides multifunctional services to separate groups of users. Choice experiments can be used to derive estimates of value for different management attributes. However, little research has been conducted on how frequently respondents ignore attributes used to describe policy management scenarios. We fill this gap using an approach that identifies and compares both serial and choice task attribute nonattendance addressing five different visitor types. Our results indicate that accounting for choice task nonattendance significantly improves model fit and yield estimates of marginal willingness to pay with a more plausible pattern of signs and greater efficiency

Non-attendance to attributes in environmental choice analysis: a latent class specification.

There is a growing literature on the design and use of stated choice experiments. Analysts have developed sophisticated ways of analysing such data, using a form of discrete choice model to identify the marginal (dis)utility associated with observed attributes linked to an alternative, as well as accounting for preference and scale heterogeneity. There is also a growing literature studying the attribute processing rules that respondents use as a way of simplifying the task of choosing. Using the latent class framework, we define classes based on rules that recognise the non-attendance to one or more attributes. These processing rules are postulated to be used in real markets as a form of cognitive rationalisation. The empirical study involves a choice amongst rural environmental landscape improvements in the Republic of Ireland. We estimate models and calculate a marginal willingness to pay (WTP) for four landscape improvements, and contrast it with the results from a model specification in which all attributes are assumed to be attended to with parameter preservation. We find that the marginal WTP is, on average, significantly higher when full attribute preservation specification is adopted, raising questions about the appropriateness of current practice that assume a fully compensatory attribute choice rule