Design efficiency for non-market valuation with choice modelling: how to measure it, what to report and why.

Scarpa, R.; Rose, J.M.

Abstract

We review the basic principles for the evaluation of design efficiency in discrete choice modelling with a focus on efficiency of WTP estimates from the multinomial logit model. The discussion is developed under the realistic assumption that researchers can plausibly define a prior belief on the range of values for the utility coefficients. D-, A-, B-, S- and C-errors are compared as measures of design performance in applied studies and their rationale is discussed. An empirical example based on the generation and comparison of fifteen separate designs from a common set of assumptions illustrates the relevant considerations to the context of non-market valuation, with particular emphasis placed on C-efficiency. Conclusions are drawn for the practice of reporting in non-market valuation and for future work on design research.

Citation

Scarpa, R., & Rose, J. (2008). Design efficiency for non-market valuation with choice modelling: how to measure it, what to report and why. The Australian Journal of Agricultural and Resource Economics, 52(3), 253-282. https://doi.org/10.1111/j.1467-8489.2007.00436.x

• Journal Article Type: Article
• Online Publication Date: Aug 28, 2008
• Publication Date: 2008-09
• Deposit Date: Jan 22, 2015
• Journal: Australian Journal of Agricultural and Resource Economics
• Print ISSN: 1364-985X
• Electronic ISSN: 1467-8489
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 52
• Issue: 3
• Pages: 253-282
• DOI: https://doi.org/10.1111/j.1467-8489.2007.00436.x
• Public URL: https://durham-repository.worktribe.com/output/1446733