Modelling heterogeneity in response behaviour towards a sequence of discrete choice questions: a latent class approach

There is a growing body of evidence in the non-market valuation literature suggesting that responses to a sequence of discrete choice questions tend to violate the assumptions typically made by analysts regarding independence of responses and stability of preferences. Heuristics such as value learning and strategic misrepresentation have been offered as explanations for these results. While a few studies have tested these heuristics as competing hypotheses, none have investigated the possibility that each explains the response behaviour of a subgroup of the population. In this paper, we make a contribution towards addressing this research gap by presenting an equality-constrained latent class model designed to estimate the proportion of respondents employing each of the proposed heuristics. We demonstrate the model on binary and multinomial choice data sources and find three distinct types of response behaviour. The results suggest that accounting for heterogeneity in response behaviour may be a better way forward than attempting to identify a single heuristic to explain the behaviour of all respondents

Households’ Willingness to Pay for Undergrounding Electricity and Telecommunications Wires

Underground telecommunications and low-voltage electricity networks have several advantages over overhead networks including reliability of supply, safety and improved visual amenity. The economic viability of replacing existing overhead networks with new underground networks depends on the value of these benefits to households, but no complete value estimates are available in the literature. This paper represents a contribution towards addressing this research gap. A stated choice survey is used to estimate willingness-to-pay for undergrounding in established residential areas in Canberra. Average willingness-to-pay is at least $6,838 per household and there is significant variation in preferences over the population. The results suggest that benefits would be highest in areas with higher household income and older residents where visual amenity, safety, tree trimming or restrictions on the use of yard space are of concern.Stated preference; willingness-to-pay; undergrounding; supply reliability

Modelling heterogeneity in response behaviour towards a sequence of discrete choice questions: a latent class approach

There is a growing body of evidence in the non-market valuation literature suggesting that responses to a sequence of discrete choice questions tend to violate the assumptions typically made by analysts regarding independence of responses and stability of preferences. Heuristics such as value learning and strategic misrepresentation have been offered as explanations for these results. While a few studies have tested these heuristics as competing hypotheses, none have investigated the possibility that each explains the response behaviour of a subgroup of the population. In this paper, we make a contribution towards addressing this research gap by presenting an equality-constrained latent class model designed to estimate the proportion of respondents employing each of the proposed heuristics. We demonstrate the model on binary and multinomial choice data sources and find three distinct types of response behaviour. The results suggest that accounting for heterogeneity in response behaviour may be a better way forward than attempting to identify a single heuristic to explain the behaviour of all respondents.Choice experiment; latent class; ordering effects; strategic response; willingness-to-pay

A comparison of responses to single and repeated discrete choice questions

According to neoclassical economic theory, a stated preference elicitation format comprising a single binary choice between the status quo and one alternative is incentive compatible under certain conditions. Formats typically used in choice experiments comprising a sequence of discrete choice questions do not hold this property. In this paper, the effect on stated preferences of expanding the number of binary choice tasks per respondent from one to four is tested using a split sample treatment in an attribute-based survey relating to the undergrounding of overhead electricity and telecommunications wires. We find evidence to suggest that presenting multiple choice tasks per respondent decreases estimates of expected willingness to pay. Preferences stated in the first of a sequence of choice tasks are not significantly different from those stated in the incentive compatible single binary choice task, but, in subsequent choice tasks, responses are influenced by cost levels observed in past questions. Three behavioural explanations can be advanced – weak strategic misrepresentation, reference point revision and cost-driven value learning. The evidence is contrary to the standard assumption of truthful response with stable preferences.Choice experiment; willingness-to-pay; incentive compatibility; order effects; undergrounding

Strategic response to a sequence of discrete choice questions

According to neoclassical economic theory, the only stated preference elicitation format that can feasibly be employed in field studies to which truthful response can be the dominant strategy for all respondents is a single binary choice between the status quo and one alternative. In studies where the objective is estimation of preferences for multiple attributes of a good, it is preferred (and, in some cases, necessary) based on econometric considerations, to present respondents with a sequence of choice tasks. Economic theory predicts that utility-maximising respondents may find it optimal to misrepresent their preferences in this elicitation format. In this paper, the effect on stated preferences of expanding the number of choice tasks per respondent from one to four is tested using a split sample treatment in an attribute-based survey relating to the undergrounding of overhead electricity and telecommunications wires in the Australian Capital Territory. We find evidence to suggest that presenting multiple choice tasks per respondent decreases estimates of total willingness to pay and that this effect is related to the ordering of cost levels presented over the sequence of choice tasks. Two behavioural explanations can be advanced - a weak cost minimisation strategy, which implies divergence between stated and true preferences, and a ‘good deal / bad deal’ heuristic, in which stated preferences reflect true preferences that change over the course of the sequence of choice tasks. Preferences stated in the first of a sequence of choice tasks are not significantly different from those stated in the incentive compatible single binary choice task. A key objective of future research will be to establish whether this effect becomes less prevalent as the number of attributes and alternatives per choice task are increased.Choice experiments, willingness to pay, incentive compatibility, strategic behaviour, order effects, underground electricity, Research Methods/ Statistical Methods,

Modelling heterogeneity in response behaviour towards a sequence of discrete choice questions: a probabilistic decision process model

There is a growing body of evidence in the non-market valuation literature suggesting that responses to a sequence of discrete choice questions tend to violate the assumptions typically made by analysts regarding independence of responses and stability of preferences. Decision processes (or heuristics) such as value learning and strategic misrepresentation have been offered as explanations for these results. While a few studies have tested these heuristics as competing hypotheses, none has investigated the possibility that each explains the response behaviour of a subgroup of the population. In this paper, we make a contribution towards addressing this research gap by presenting a probabilistic decision process model designed to estimate the proportion of respondents employing defined heuristics. We demonstrate the model on binary and multinomial choice data sources and find three distinct types of response behaviour. The results suggest that accounting for heterogeneity in response behaviour may be a better way forward than attempting to identify a single heuristic to explain the behaviour of all respondents.Choice experiment, decision process, ordering effects, strategic response, willingness to pay, Research Methods/ Statistical Methods, C25, L94, Q51,

Visual Acuity does not Moderate Effect Sizes of Higher-Level Cognitive Tasks.

Background/study contextDeclining visual capacities in older adults have been posited as a driving force behind adult age differences in higher-order cognitive functions (e.g., the "common cause" hypothesis of Lindenberger & Baltes, 1994, Psychology and Aging, 9, 339-355). McGowan, Patterson, and Jordan (2013, Experimental Aging Research, 39, 70-79) also found that a surprisingly large number of published cognitive aging studies failed to include adequate measures of visual acuity. However, a recent meta-analysis of three studies (La Fleur and Salthouse, 2014, Psychonomic Bulletin & Review, 21, 1202-1208) failed to find evidence that visual acuity moderated or mediated age differences in higher-level cognitive processes. In order to provide a more extensive test of whether visual acuity moderates age differences in higher-level cognitive processes, we conducted a more extensive meta-analysis of topic.MethodsUsing results from 456 studies, we calculated effect sizes for the main effect of age across four cognitive domains (attention, executive function, memory, and perception/language) separately for five levels of visual acuity criteria (no criteria, undisclosed criteria, self-reported acuity, 20/80-20/31, and 20/30 or better).ResultsAs expected, age had a significant effect on each cognitive domain. However, these age effects did not further differ as a function of visual acuity criteria.ConclusionThe current meta-analytic, cross-sectional results suggest that visual acuity is not significantly related to age group differences in higher-level cognitive performance-thereby replicating La Fleur and Salthouse (2014). Further efforts are needed to determine whether other measures of visual functioning (e.g., contrast sensitivity, luminance) affect age differences in cognitive functioning

A Second Method to Photometrically Align Multi-Site Microlensing Light Curves: Source Color in Planetary Event MOA-2007-BLG-192

At present, microlensing light curves from different telescopes and filters are photometrically aligned by fitting them to a common model. We present a second method based on photometry of common field stars. If two spectral responses are similar (or the color of the source is known) then this technique can resolve important ambiguities that frequently arise when predicting the future course of the event, and that occasionally persist even when the event is over. Or if the spectral responses are different, it can be used to derive the color of the source when that is unknown. We present the essential elements of this technique and apply it to the case of MOA-2007-BLG-192, an important planetary event for which the system may be a terrestrial planet orbiting a brown dwarf or very low mass star. The refined estimate of the source color that we derive here, V-I=2.36 +- 0.03, will aid in making the estimate of the lens mass more precise.Comment: 16 pages including 3 figures. Submitted to Ap

Remote State Preparation

Quantum teleportation uses prior entanglement and forward classical communication to transmit one instance of an unknown quantum state. Remote state preparation (RSP) has the same goal, but the sender knows classically what state is to be transmitted. We show that the asymptotic classical communication cost of RSP is one bit per qubit - half that of teleportation - and becomes even less when transmitting part of a known entangled state. We explore the tradeoff between entanglement and classical communication required for RSP, and discuss RSP capacities of general quantum channels.Comment: 4 pages including 1 epsf figure; v3 has an additional author and discusses relation to work of Devetak and Berger (quant-ph/0102123); v4 improves low-entanglement protocols without back communication to perform as well as low-entanglement protocols with back communication; v5 (journal version) has a few small change