[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v30y2021i6p1291-1305.html
   My bibliography  Save this article

Weighting or aggregating? Investigating information processing in multi‐attribute choices

Author

Listed:
  • Mesfin G. Genie
  • Nicolas Krucien
  • Mandy Ryan
Abstract
Multi‐attribute choices are commonly analyzed in economics to value goods and services. Analysis assumes individuals consider all attributes, making trade‐offs between them. Such decision‐making is cognitively demanding, often triggering alternative decision rules. We develop a new model where individuals aggregate multi‐attribute information into meta‐attributes. Applying our model to a choice experiment (CE) dataset, accounting for attribute aggregation (AA) improves model fit. The probability of adopting AA is greater for: homogenous attribute information; participants who had shorter response time and failed the dominance test; and for later located choices. Accounting for AA has implications for welfare estimates. Our results underline the importance of accounting for information processing rules when modelling multi‐attribute choices.

Suggested Citation

  • Mesfin G. Genie & Nicolas Krucien & Mandy Ryan, 2021. "Weighting or aggregating? Investigating information processing in multi‐attribute choices," Health Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 1291-1305, June.
    • Handle: RePEc:wly:hlthec:v:30:y:2021:i:6:p:1291-1305
    DOI: 10.1002/hec.4245
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/hec.4245
    Download Restriction: no
    File URL: https://libkey.io/10.1002/hec.4245?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lancsar, Emily & Louviere, Jordan & Donaldson, Cam & Currie, Gillian & Burgess, Leonie, 2013. "Best worst discrete choice experiments in health: Methods and an application," Social Science & Medicine, Elsevier, vol. 76(C), pages 74-82.
    2. Emily Lancsar & Jordan Louviere, 2008. "Conducting Discrete Choice Experiments to Inform Healthcare Decision Making," PharmacoEconomics, Springer, vol. 26(8), pages 661-677, August.
    3. Borghans, Lex & Romans, Margo & Sauermann, Jan, 2010. "What makes a good conference? Analysing the preferences of labour economists," Labour Economics, Elsevier, vol. 17(5), pages 868-874, October.
    4. Genie, Mesfin G. & Nicoló, Antonio & Pasini, Giacomo, 2020. "The role of heterogeneity of patients’ preferences in kidney transplantation," Journal of Health Economics, Elsevier, vol. 72(C).
    5. Vikas Soekhai & Esther W. Bekker-Grob & Alan R. Ellis & Caroline M. Vass, 2019. "Discrete Choice Experiments in Health Economics: Past, Present and Future," PharmacoEconomics, Springer, vol. 37(2), pages 201-226, February.
    6. Esther W. de Bekker‐Grob & Mandy Ryan & Karen Gerard, 2012. "Discrete choice experiments in health economics: a review of the literature," Health Economics, John Wiley & Sons, Ltd., vol. 21(2), pages 145-172, February.
    7. Fernando San Miguel & Mandy Ryan & Mabelle Amaya‐Amaya, 2005. "‘Irrational’ stated preferences: a quantitative and qualitative investigation," Health Economics, John Wiley & Sons, Ltd., vol. 14(3), pages 307-322, March.
    8. Sebastian Heidenreich & Verity Watson & Mandy Ryan & Euan Phimister, 2018. "Decision heuristic or preference? Attribute non‐attendance in discrete choice problems," Health Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 157-171, January.
    9. Tobias Börger, 2016. "Are Fast Responses More Random? Testing the Effect of Response Time on Scale in an Online Choice Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(2), pages 389-413, October.
    10. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
    11. Mokhtarian, Patricia L., 2016. "Discrete choice models’ ρ2: A reintroduction to an old friend," Journal of choice modelling, Elsevier, vol. 21(C), pages 60-65.
    12. Michael Clark & Domino Determann & Stavros Petrou & Domenico Moro & Esther Bekker-Grob, 2014. "Discrete Choice Experiments in Health Economics: A Review of the Literature," PharmacoEconomics, Springer, vol. 32(9), pages 883-902, September.
    13. Hoyos, David, 2010. "The state of the art of environmental valuation with discrete choice experiments," Ecological Economics, Elsevier, vol. 69(8), pages 1595-1603, June.
    14. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
    15. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    16. Hole, Arne Risa & Kolstad, Julie Riise & Gyrd-Hansen, Dorte, 2013. "Inferred vs. stated attribute non-attendance in choice experiments: A study of doctors’ prescription behaviour," Journal of Economic Behavior & Organization, Elsevier, vol. 96(C), pages 21-31.
    17. Erdem, Seda & Campbell, Danny & Thompson, Carl, 2014. "Elimination and selection by aspects in health choice experiments: Prioritising health service innovations," Journal of Health Economics, Elsevier, vol. 38(C), pages 10-22.
    18. Hansen, Flemming, 1976. "Psychological Theories of Consumer Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 3(3), pages 117-142, December.
    19. Breustedt, Gunnar & Muller-Scheessel, Jorg & Latacz-Lohmann, Uwe, 2008. "Forecasting the Adoption of GM Oilseed Rape: Evidence from a Discrete Choice Experiment," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36771, Agricultural Economics Society.
    20. Scott, Anthony, 2002. "Identifying and analysing dominant preferences in discrete choice experiments: An application in health care," Journal of Economic Psychology, Elsevier, vol. 23(3), pages 383-398, June.
    21. Gunnar Breustedt & Jörg Müller‐Scheeßel & Uwe Latacz‐Lohmann, 2008. "Forecasting the Adoption of GM Oilseed Rape: Evidence from a Discrete Choice Experiment in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(2), pages 237-256, June.
    22. Swait, Joffre & Adamowicz, Wiktor, 2001. "Choice Environment, Market Complexity, and Consumer Behavior: A Theoretical and Empirical Approach for Incorporating Decision Complexity into Models of Consumer Choice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 86(2), pages 141-167, November.
    23. Debby van Helvoort‐Postulart & Benedict G. C. Dellaert & Trudy van der Weijden & Maarten F. von Meyenfeldt & Carmen D. Dirksen, 2009. "Discrete choice experiments for complex health‐care decisions: does hierarchical information integration offer a solution?," Health Economics, John Wiley & Sons, Ltd., vol. 18(8), pages 903-920, August.
    24. Juan Ramos-Goñi & Oliver Rivero-Arias & María Errea & Elly Stolk & Michael Herdman & Juan Cabasés, 2013. "Dealing with the health state ‘dead’ when using discrete choice experiments to obtain values for EQ-5D-5L heath states," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(1), pages 33-42, July.
    25. Jacinto Braga & Chris Starmer, 2005. "Preference Anomalies, Preference Elicitation and the Discovered Preference Hypothesis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(1), pages 55-89, September.
    26. Rose, John M. & Bliemer, Michiel C.J. & Hensher, David A. & Collins, Andrew T., 2008. "Designing efficient stated choice experiments in the presence of reference alternatives," Transportation Research Part B: Methodological, Elsevier, vol. 42(4), pages 395-406, May.
    27. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, September.
    28. Mandy Ryan & Karen Gerard & Gillian Currie, 2012. "Using Discrete Choice Experiments in Health Economics," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, Second Edition, chapter 41, Edward Elgar Publishing.
    29. Junyi Shen, 2009. "Latent class model or mixed logit model? A comparison by transport mode choice data," Applied Economics, Taylor & Francis Journals, vol. 41(22), pages 2915-2924.
    30. Campbell, Danny & Boeri, Marco & Doherty, Edel & George Hutchinson, W., 2015. "Learning, fatigue and preference formation in discrete choice experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 345-363.
    31. Danny Campbell & David A. Hensher & Riccardo Scarpa, 2011. "Non-attendance to attributes in environmental choice analysis: a latent class specification," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 54(8), pages 1061-1076, December.
    32. Timothy J. Gilbride & Greg M. Allenby, 2004. "A Choice Model with Conjunctive, Disjunctive, and Compensatory Screening Rules," Marketing Science, INFORMS, vol. 23(3), pages 391-406, October.
    33. David A. Hensher, 2006. "How do respondents process stated choice experiments? Attribute consideration under varying information load," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(6), pages 861-878.
    34. Hess, Stephane & Hensher, David A. & Daly, Andrew, 2012. "Not bored yet – Revisiting respondent fatigue in stated choice experiments," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 626-644.
    35. Mandy Ryan & Verity Watson & Vikki Entwistle, 2009. "Rationalising the ‘irrational’: a think aloud study of discrete choice experiment responses," Health Economics, John Wiley & Sons, Ltd., vol. 18(3), pages 321-336, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Samare P. I. Huls & Emily Lancsar & Bas Donkers & Jemimah Ride, 2022. "Two for the price of one: If moving beyond traditional single‐best discrete choice experiments, should we use best‐worst, best‐best or ranking for preference elicitation?," Health Economics, John Wiley & Sons, Ltd., vol. 31(12), pages 2630-2647, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    2. Genie, Mesfin G. & Ryan, Mandy & Krucien, Nicolas, 2021. "To pay or not to pay? Cost information processing in the valuation of publicly funded healthcare," Social Science & Medicine, Elsevier, vol. 276(C).
    3. Nicolas Krucien & Jonathan Sicsic & Mandy Ryan, 2019. "For better or worse? Investigating the validity of best–worst discrete choice experiments in health," Health Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 572-586, April.
    4. Chavez, Daniel E. & Palma, Marco A. & Nayga, Rodolfo M. & Mjelde, James W., 2020. "Product availability in discrete choice experiments with private goods," Journal of choice modelling, Elsevier, vol. 36(C).
    5. Alessandro Mengoni & Chiara Seghieri & Sabina Nuti, 2013. "The application of discrete choice experiments in health economics: a systematic review of the literature," Working Papers 201301, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.
    6. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    7. Nikita Arora & Matthew Quaife & Kara Hanson & Mylene Lagarde & Dorka Woldesenbet & Abiy Seifu & Romain Crastes dit Sourd, 2022. "Discrete choice analysis of health worker job preferences in Ethiopia: Separating attribute non‐attendance from taste heterogeneity," Health Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 806-819, May.
    8. Krucien, Nicolas & Ryan, Mandy & Hermens, Frouke, 2017. "Visual attention in multi-attributes choices: What can eye-tracking tell us?," Journal of Economic Behavior & Organization, Elsevier, vol. 135(C), pages 251-267.
    9. Chinedu, Obi & Sanou, Edouard & Tur-Cardona, Juan & Bartolini, Fabio & Gheysen, Godelieve & Speelman, Stijn, 2018. "Farmers’ valuation of transgenic biofortified sorghum for nutritional improvement in Burkina Faso: A latent class approach," Food Policy, Elsevier, vol. 79(C), pages 132-140.
    10. Osborne, Matthew & Lambe, Fiona & Ran, Ylva & Dehmel, Naira & Tabacco, Giovanni Alberto & Balungira, Joshua & Pérez-Viana, Borja & Widmark, Erik & Holmlid, Stefan & Verschoor, Arjan, 2022. "Designing development interventions: The application of service design and discrete choice experiments in complex settings," World Development, Elsevier, vol. 158(C).
    11. Nicolas Krucien & Verity Watson & Mandy Ryan, 2017. "Is Best–Worst Scaling Suitable for Health State Valuation? A Comparison with Discrete Choice Experiments," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 1-16, December.
    12. Emily Lancsar & Peter Burge, 2014. "Choice modelling research in health economics," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 28, pages 675-687, Edward Elgar Publishing.
    13. Oedingen, Carina & Bartling, Tim & Schrem, Harald & Mühlbacher, Axel C. & Krauth, Christian, 2021. "Public preferences for the allocation of donor organs for transplantation: A discrete choice experiment," Social Science & Medicine, Elsevier, vol. 287(C).
    14. Nicolas Krucien & Amiram Gafni & Nathalie Pelletier‐Fleury, 2015. "Empirical Testing of the External Validity of a Discrete Choice Experiment to Determine Preferred Treatment Option: The Case of Sleep Apnea," Health Economics, John Wiley & Sons, Ltd., vol. 24(8), pages 951-965, August.
    15. Erlend Dancke Sandorf & Danny Campbell, 2019. "Accommodating satisficing behaviour in stated choice experiments," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(1), pages 133-162.
    16. John Buckell & Vrinda Vasavada & Sarah Wordsworth & Dean A. Regier & Matthew Quaife, 2022. "Utility maximization versus regret minimization in health choice behavior: Evidence from four datasets," Health Economics, John Wiley & Sons, Ltd., vol. 31(2), pages 363-381, February.
    17. Na-na Wang & Liang-guo Luo & Ya-ru Pan & Xue-mei Ni, 2019. "Use of discrete choice experiments to facilitate design of effective environmentally friendly agricultural policies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(4), pages 1543-1559, August.
    18. Campbell, Danny & Boeri, Marco & Doherty, Edel & George Hutchinson, W., 2015. "Learning, fatigue and preference formation in discrete choice experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 345-363.
    19. Vecchiato, D. & Tempesta, T., 2013. "Valuing the benefits of an afforestation project in a peri-urban area with choice experiments," Forest Policy and Economics, Elsevier, vol. 26(C), pages 111-120.
    20. Mesfin G. Genie & Mandy Ryan & Nicolas Krucien, 2023. "Keeping an eye on cost: What can eye tracking tell us about attention to cost information in discrete choice experiments?," Health Economics, John Wiley & Sons, Ltd., vol. 32(5), pages 1101-1119, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:hlthec:v:30:y:2021:i:6:p:1291-1305. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/5749 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.