Skip to main content

“Irrational” Stated Preferences: A quantitative and qualitative investigation

  • Chapter
Using Discrete Choice Experiments to Value Health and Health Care

When using discrete choice experiments (DCEs) it is crucial to ensure that subjects are answering in a “rational” (internally consistent) way. One approach to testing rationality is to test the axiom of non-satiation, i.e. more is preferred to less.Within DCEs satisfaction of this axiom has been explored by including choices where one of the options has no worse levels for any of the attributes and better levels for at least one (See Chapters 4, 5 and 7 in this book and Ryan et al., 2001). Johnson and Mathews (2001) carried out different tests of choice consistency, including dominance, monotonicity across different pairs and so-called stability (repetition of identical choices within the same questionnaire). Transitivity of preferences has also been explored (San Miguel, 2000).

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 189.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 249.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 249.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Aronson, J. 1994. A pragmatic view of thematic analysis. The Qualitative Report, vol 2 (1).

    Google Scholar 

  • Caldow, J.L., Bond, C.M. and Ryan, M. et al. 2000. Treatment of minor illness in primary care: a national survey of patient attitudes to a wider nursing role’. Report to the Scottish Chief Scientist Office, K/OPR/2/2/D340.

    Google Scholar 

  • DeShazo, J.R. and Fermo, G. 2002. Designing choice sets for stated preference methods: the effects of complexity on choice consistency. Journal of Environmental Economics and Management, vol 44, 123–143.

    Article  Google Scholar 

  • Drolet, A.L., Simonson, I. and Tversky, A. 2000. Indifference curves that travel with the choice set. Marketing Letters, vol 11, 199–209.

    Article  Google Scholar 

  • Earl, P.E. 1990. Economics and psychology: a survey. The Economic Journal, vol 100, 718–755.

    Article  Google Scholar 

  • Elrod, T., Louviere J.J. and Davey, K.S. 1992. An empirical comparison of rating-based and choice-based conjoint models. Journal of Marketing Research, vol 29, 368–377.

    Article  Google Scholar 

  • Ericcson, K.A. and Simon, H.A. 1993. Protocol Analysis. Cambridge, MA: MIT Press.

    Google Scholar 

  • Fishburn, P.C. 1970. Intransitive indifference in preference theory: a survey. Operations Research, vol 18, 207–228.

    Article  Google Scholar 

  • Foster, V. and Mourato, S. 2002. Testing for consistency in contingent raking experiments. Journal of Environmental Economics and Management, vol 44, 302–328.

    Article  Google Scholar 

  • Greene, W.H. 1997. Econometric Analysis. Upper Saddle River, NJ: Prenctice Hall.

    Google Scholar 

  • Johnson, F.R. and Desvousges, W.H. 1997. Estimating stated preferences with rated-pair data: environmental, health and employment effects of energy programs. Journal of Environmental Economics and Management, vol 34 (1), 79–99.

    Article  Google Scholar 

  • Johnson, F.R. and Mathews, K.E. 2001. Sources and effects of utility–theoretic inconsistency in stated preference surveys. American Journal of Agricultural Economics, vol 5, 1328–1333.

    Article  Google Scholar 

  • Lancsar, E. and Louviere, J.J. 2006. Deleting “irrational” responses from discrete choice experiments: a case of investigating or imposing preferences? Health Economics, vol 15 (8), 797–811.

    Article  Google Scholar 

  • Loewenstein, G. 1999. Experimental economics from the vantage-point of behavioural economics. The Economics Journal, vol 109, F25–F34.

    Article  Google Scholar 

  • Louviere, J.J., Hensher, D.A. and Swait, J.D. 2000. Stated Choice Methods. Analysis and Application. Cambridge: Cambridge University Press.

    Google Scholar 

  • Maddala, T., Phillips, K.A. and Johnson, F.R. 2002. An experiment on simplifying conjoint analysis designs for measuring preferences. Health Economics, vol 37 (6), 1681–1705.

    Google Scholar 

  • May, K.O. 1954. Intransitivity, utility, and the aggregation of preference patterns. Econometrica, vol 22, 1–13.

    Article  Google Scholar 

  • Mazzotta, M. and Opaluch, J. 1995. Decision making when choices are complex: a test of Heiner’s hypothesis. Land Economics, vol 71 (4), 500–515.

    Article  Google Scholar 

  • Rouwendal, J. and de Blaiej, A.T. 2004. Inconsistent and lexicographic choice in stated preference analysis. Tinbergen Institute Discussion Paper. TI 2004–038/3. http://www.tinbergen.nl/discussionpapers/04038.pdf.

  • Ryan, M. and Gerard, K. 2003. Using discrete choice experiments to value health care: current practice and future prospects. Applied Health Economics and Policy Analysis, vol 2 (1), 55–64.

    Google Scholar 

  • Ryan, M. and San Miguel, F. 2003. Revisiting the axiom of completeness in health care. Health Economics, vol 12 (4), 293–308.

    Article  Google Scholar 

  • Ryan, M., Scott, D.A., Reeves, C., Bate, A., van Teijlingen, E., Russell, E., Napper, M. and Robb, C. 2001. Eliciting public preferences for health care: a systematic review of techniques. Health Technology Assessment, vol 5 (5), 1–186.

    Google Scholar 

  • Ryan, M., Reeves, C. and Entwistle, V. 2002. Listening to respondents: a think aloud study of discrete choice experiment responses. Paper presented to the Health Economic Study Group Meeting, University of East Anglia, January.

    Google Scholar 

  • Saelensminde, K. 2002. The impact of choice inconsistencies in stated choice studies. Environmental and Resource Economics, vol 23, 403–420.

    Article  Google Scholar 

  • San Miguel, F. 2000. Testing the assumptions of completeness, stability and rationality of preferences in health economics using discrete choice experiments. Ph.D. thesis. University of Aberdeen, Aberdeen.

    Google Scholar 

  • Sen, A. 1993. Internal consistency of choice. Econometrica, vol 61, 495–521.

    Article  Google Scholar 

  • Severin, V.C., Burgess, L., Louviere, J. and Street, D.J. 2004. Comparing statistical efficiency and respondent efficiency in choice experiments. Research report, Department of Mathematical Sciences, University of Technology, Sydney, Australia.

    Google Scholar 

  • Shugan, S.M. 1980. The cost of thinking. Journal of Consumer Research, vol 7 (2), 99–111.

    Article  Google Scholar 

  • Simonson, I. 1989. Choice based on reasons: the case of attraction and compromise effects. Journal of Consumer Research, vol 16, 158–174.

    Article  Google Scholar 

  • Slovic, P. 1995. The construction of preference. American Psychologist, vol 50, 364–371.

    Article  Google Scholar 

  • Swait, J. and Adamowicz, W. 2001. Choice environment, market complexity, and consumer behavior: a theoretical and empirical approach for incorporating decision complexity into models of consumer choice. Organizational Behaviour and Human Decision Processes, vol 86 (2), 141–167.

    Article  Google Scholar 

  • Tversky, A. 1969. Intransitivity of preferences. Psychological Review, vol 76, 31–48.

    Article  Google Scholar 

  • Tversky, A. and Sattah, S. 1979. Preference trees. Psychological Review, vol 86, 542–573.

    Article  Google Scholar 

  • Zwerina, K., Huber, J. and Kuhfeld, W. 1996. A General method for constructing efficient choice designs, SAS working paper. http://citeseer.nj.nec.com/rd/89088587, 376089, 1, 0.25. Download/http:qSqqSqftp.sas.comqSqtechsupqSqdownloadqSqtechnoteqSqts629.pdf.

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2008 Springer

About this chapter

Cite this chapter

Inza, F.S.M., Ryan, M., Amaya-Amaya, M. (2008). “Irrational” Stated Preferences: A quantitative and qualitative investigation. In: Ryan, M., Gerard, K., Amaya-Amaya, M. (eds) Using Discrete Choice Experiments to Value Health and Health Care. The Economics of Non-Market Goods and Resources, vol 11. Springer, Dordrecht. https://doi.org/10.1007/978-1-4020-5753-3_9

Download citation

Publish with us

Policies and ethics