Journal
EUROPEAN REVIEW OF AGRICULTURAL ECONOMICS
Volume 50, Issue 2, Pages 457-496Publisher
OXFORD UNIV PRESS
DOI: 10.1093/erae/jbac017
Keywords
experimental quantity; discrete choice experiments; WTP; mental budgeting
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Food choice experiments often use researcher-determined product quantities, which can lead to biased estimates. Small pre-defined quantities result in an upward bias in willingness to pay estimates, particularly among higher-income consumers. It is important to consider matching the experimental quantity with the consumer's actual purchase quantity.
Food discrete choice experiments typically define product alternatives with a researcher-predetermined and sometimes arbitrary quantity. Results reveal that the use of a researcher-prespecified experimental quantity leads to biased welfare estimates. Differences in marginal utility of money are found with a resulting upward bias in willingness to pay estimates when small pre-defined product quantities are used. Higher-income consumers show more evident bias. This evidence cautions the use of a researcher-predetermined quantity to design alternatives in choice tasks and also proposes an alternative experimental design that accounts for these effects by matching the quantity in experiments to consumer's actual purchase quantity.
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