Abstract
Responding to a stated preference discrete choice experiment (DCE) is a complex task for respondents to undertake. Task complexity can induce response error, thereby decreasing the statistical precision of the econometric model. This study explores the link between task complexity and statistical precision as moderated by the level of thoughtful deliberation respondents exert when completing choice tasks. To do this, we make novel use of subjects’ certainty of response to DCE tasks as a measure of their deliberation. The distinction between intuitive and deliberate thought (System 1 and System 2, respectively) motivates how task complexity will differentially affect System 1 and System 2 respondents. The principle of utility balance in experimental design theory is used to understand how greater deliberation will increase task complexity, but will also improve statistical precision if respondents are engaging in System 2 processing. Our analyses find that increases in choice task utility balance decreases response certainty, and re-weighting the regression to favor respondents who are more uncertain of their choices increases the statistical precision of the econometric model.
Original language | English |
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Pages (from-to) | 40-49 |
Number of pages | 10 |
Journal | Journal of Socio-Economics |
Volume | 50 |
Early online date | 23 Mar 2014 |
DOIs | |
Publication status | Published - Jun 2014 |
Bibliographical note
The authors would like to thank the editor and two anonymous referees for their valuable comments which led to the improvement of this manuscript. The results and views expressed in this manuscript remain the authors own. Funding for this study was provided by a program grant from the Ontario Ministry of Health and Long-Term Care Drug Innovation Fund.The Canadian Centre for Applied Research in Cancer Control receives core funding from the Canadian Cancer Society.Journal has changed it's name to The Journal of Behavioral and Experimental Economics (formerly the Journal of Socio-Economics)
Keywords
- discrete choice experiment
- stated response certainty
- random heterogeneity
- sampling uncertainty
- dual-process thinking