Effect of Experimental Design on Choice-Based Conjoint Valuation Estimates
In this article, we investigate the effect of several commonly used experimental designs on willingness-to-pay in a Monte Carlo environment where true utility parameters are known. All experimental designs considered in this study generated unbiased valuation estimates. However, random designs or designs that explicitly incorporated attribute interactions generated more precise valuation estimates than main effects only designs. A key result of our analysis is that a large sample size can substitute for a poor experimental design. Overall, our results indicate that certain steps can be taken to achieve a manageably sized experimental design without sacrificing the credibility of welfare estimates. Copyright 2005, Oxford University Press.
Year of publication: |
2005
|
---|---|
Authors: | Lusk, Jayson L. ; Norwood, F. Bailey |
Published in: |
American Journal of Agricultural Economics. - Agricultural and Applied Economics Association - AAEA. - Vol. 87.2005, 3, p. 771-785
|
Publisher: |
Agricultural and Applied Economics Association - AAEA |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Gunderson, Michael A., (2005)
-
The Price of Happy Hens: A Hedonic Analysis of Retail Egg Prices
Chang, Jae Bong, (2010)
-
External Validity of Hypothetical Surveys and Laboratory Experiments
Chang, Jae Bong, (2008)
- More ...