Søren Bøye Olsen

The first time is the hardest: A test of ordering effects in choice experiments

This paper addresses the issue of ordering effects in choice experiments, and in particular how learning processes potentially affect respondents’ stated preferences in a sequence of choice sets. In a case study concerning food quality attributes of chicken breast filets, we find evidence of ordering effects in a sequence of 16 choice sets, where the last 8 choice sets are identical to the first 8. The overall preference structure is found to differ significantly between the two identical sequences of choice sets, and significant increases in marginal WTP are found for two out of four attributes. We find a reduction in the error variance for the last 8 choice sets relative to the first 8 choice sets. In particular, this difference is ascribed to the first choice set obtaining a significantly higher error variance than all succeeding choice sets, suggesting institutional learning rather than preference learning effects underlying the observed ordering effect. This is further supported by the fact that the differences in WTP become insignificant when removing the first choice set from the analysis. We find no evidence of fatigue, and we argue that our findings cannot be explained by starting point or strategic behavior effects.

Accounting protesting and warm glow bidding in Contingent Valuation surveys considering the management of environmental goods--an empirical case study assessing the value of protecting a Natura 2000 wetland area in Greece.

Based on a Contingent Valuation survey aiming to reveal the willingness to pay (WTP) for conservation of a wetland area in Greece, we show how protest and warm glow motives can be taken into account when modeling WTP. In a sample of more than 300 respondents, we find that 54% of the positive bids are rooted to some extent in warm glow reasoning while 29% of the zero bids can be classified as expressions of protest rather than preferences. In previous studies, warm glow bidders are only rarely identified while protesters are typically identified and excluded from further analysis. We test for selection bias associated with simple removal of both protesters and warm glow bidders in our data. Our findings show that removal of warm glow bidders does not significantly distort WTP whereas we find strong evidence of selection bias associated with removal of protesters. We show how to correct for such selection bias by using a sample selection model. In our empirical sample, using the typical approach of removing protesters from the analysis, the value of protecting the wetland is significantly underestimated by as much as 46% unless correcting for selection bias.

Three perspectives on motivation and multicriteria assessment of organic food systems

Organic food systems are based on a complex of value criteria that often are not explicitly considered when agents think, communicate, and make decisions concerning organic food. Multicriteria assessment (MCA) refers to a group of tools that help the user to tackle such highly complex issues. The question is how an MCA tool should be designed to facilitate reflections, communication, and decision making in relation to organic food systems. A key issue is motivation. There are several divergent theories of motivation, and the question cannot be adequately answered by using any single theory. We discuss an economic, a psychosocial, and a relational perspective on motivation and MCA. Using the example of a consumer assessing and choosing products in the supermarket, the economic conception of motivation offers a focus on decision-making processes. The psychosocial approach to motivation draws attention to the influence of cognitive structures and experience-based emotional drivers. Finally, the relational approach stresses that motivation is situated in the relations between agents. We discuss how the three perspectives converge and diverge regarding the purpose of using an MCA tool, the scope of the MCA, the strategic focus, and challenges and potentials associated with an MCA tool. Through this multiple-perspective approach, the general idea of MCA is expanded and elaborated to refine the design of an MCA tool for organic food systems.

Revitalisation of Common Use in Management of Modern Multifunctional Landscapes

Abstract Land areas in collective ownership or use are traditionally referred to as commons. Through history, the common use and ownership has been a widespread means of regulating the use of natural resources. Changing economic conditions and technology spawned a process however where land use rights and landowner rights aggregated into the modern form of private ownership of individual farms with full management and owner rights. This process had obvious rationales in terms of production of marketable agricultural products. However, in the twentieth century increasing awareness of the supply of externalities such as clean groundwater and recreational opportunities from landscapes turned the attention once again to commons as an instrument for managing natural resources. Using groundwater and coastal landscapes as case examples, we pinpoint problems where outputs from the landscape are multiple consisting of a mix of public and private goods. In some instances central intervention is needed to ensure provision of public goods. In situations where transaction costs are too high to justify the guaranteed supply of goods, local initiatives, cooperatives and networks may be suitable regulatory alternatives to the predominant private and individualised ownership. It is concluded that the management regimes chosen should reflect the dominant functionality of the area in question.

Response time in online stated choice experiments: the non-triviality of identifying fast and slow respondents

ABSTRACT In this paper, we use paradata relating to the length of time respondents required in a self-administered online stated preference surveys. Although this issue has been previously explored, there is little guidance on how to identify and deal with ‘fast’ and ‘slow’ respondents. In this paper, we use scale-adjusted latent class models to address preference and variance heterogeneity and explore how class membership varies with response latency. To test our methodology, we use stated choice data collected via an online survey to establish German anglers’ preferences for fishing site attributes in Denmark. Results from our analysis corroborate that response latency has a bearing on the estimates of utility coefficients and the error variance. Although the results highlight the non-triviality of identifying fast and slow respondents, they signal the need to estimate a large number of candidate models to identify the most appropriate ‘fast’ and ‘slow’ thresholds. Not doing so is likely to lead to an inferior model and has repercussions for marginal willingness to pay estimates and choice predictions.

Correcting for non-response bias in contingent valuation surveys concerning environmental non-market goods: an empirical investigation using an online panel

Data collection for economic valuation by using Internet surveys and pre-recruited Internet panels can be associated with severe disadvantages. Problems concerning sample coverage and sample representativeness can be expected. Representation errors may occur since people can choose whether to be part of an Internet panel and subsequently whether they wish to participate in the survey, thereby introducing two elements of potential self-selection. These elements may be correlated with preferences, thus making the respondents a non-random and non-representative sample, ultimately biasing results. This paper analyses a sample used for an Internet contingent valuation method survey eliciting preferences for improvements in water quality of a river. We find that some variables that affect the survey participation decision also affect willingness-to-pay, consequently biasing our welfare estimates. We show how adjusting willingness-to-pay for this bias can be accomplished by using a grouped data model incorporating a correlation parameter to account for selection.

The influence of time of day on decision fatigue in online food choice experiments

Purpose Fatigue effects related to answering a sequence of choice tasks have received much scrutiny in the stated choice experiments (SCE) literature. However, decision fatigue related to the time of day when respondents answer questionnaires has been largely overlooked in this literature even though time of day related fatigue effects are well known in the psychology literature. The purpose of this paper is to hypothesize that variations in the time of day when respondents answer an online food choice experiment will translate into observable fatigue effects in the food choices. Design/methodology/approach An empirical SCE concerning food choices is conducted using a web-based questionnaire for interviews in a pre-recruited online panel of consumers. Timestamps collected during the online interviews provide knowledge about the time of day at which each respondent has answered the survey. This information is linked with knowledge from a food sociology survey on typical meal times as well as biophysical research linking food intake to blood sugar and mental energy in order to generate a proxy variable for each respondent’s level of mental energy when answering the food choice tasks in the questionnaire. Findings Results show evidence of a time of day effect on error variance in the stated food choices as well as the subsequently estimated market share predictions. Specifically, respondents provide less consistent answers during the afternoon than at other times of the day. Originality/value The results indicate that time of day can affect responses to an online survey through increased fatigue and correspondingly less choice consistency. Thus, especially online surveys might account for this in data analysis or even restrict accessibility to the online survey for certain times of day.

Kenyan Consumers’ Experience of Using Edible Insects as Food and Their Preferences for Selected Insect-Based Food Products

In this chapter we present information in relation to consumption, purchase experience, consumption frequency and peoples’ perceptions of how others see edible insects as food in Kenya. Two edible insects, namely termites (Macrotermes subhyalinus) and mealworms (Tenebrio molitor) were considered to study Kenyan consumers’ willingness-to-pay (WTP) for termite-based food products (TBFPs) and their reactions to using mealworms as food. In the research, whole and processed insects were considered in order to examine consumers’ WTP for TBFPs in different products formats and contexts. The data originates from a choice experiment survey conducted between December 2014 and January 2015 involving a sample of Kenyan consumers. To ensure a high degree of representativeness of the sample, five counties including Siaya, Kisumu, Nairobi, Kakamega and Machakos were chosen due to their diversity with regard to insect consumption traditions, regions (rural or urban), and socio-demographic factors (age, education and gender). In total, 611 consumers who were either household heads or spouses were randomly sampled in the survey areas and interviewed using face-to-face interviews.

Linking Consumers’ Food Choice Motives to their Preferences for Insect-based Food Products: An Application of Integrated Choice and Latent Variable Model in an African Context

Consumers’ attitudes, perceptions, personalities and motives play important roles in shaping their food choices. These factors are not fully observed by analysts, so they should be treated as latent variables. A number of economic studies treat such variables as direct measures of consumers’ food choice behaviour, even though this might introduce measurement error and endogeneity bias. We investigate the latent link between consumers’ preferences and food choice motives (FCMs) in an African context. We use an integrated choice and latent variable (ICLV) model specification for data analysis to recognise the latent nature of the FCMs and address the measurement and bias problems. The data originate from an incentivised discrete choice experiment conducted in Kenya to elicit consumers’ preferences for insect‐based foods. Our findings show that consumers’ preferences and choices are influenced by their latent motivational orientation. The results illustrate the benefit of the ICLV approach in accounting for consumers’ latent preference constructs in food choice and valuation research.