Effects of Endogenous Task Complexity and the Endowed Bundle on Stated Choice

Abstract

Conventionally, studies examining the impacts of choice complexity only consider complexity introduced exogenously from the tasks respondents face. In the context of a stated conjoint survey, this article establishes endogenous complexity measures through decision-makers' experience known as the endowed bundle before the survey. Results show that complexity should not only be defined exogenously. Endogenous complexity measures are important in determining the utility associated with an alternative and the decision of whether to participate in the market. In addition, some of these complexity effects are nonlinear. We also show that exogenous complexity simultaneous affects the choice consistency.Complexity, Endowed Bundle, Random Utility, Stated Choice, Research Methods/ Statistical Methods, C81, D12,