The impact of the approach used to describe preference heterogeneity on welfare measures has been widely studied by the academic community. However, the question as to the degree of error in welfare estimation from an inappropriate choice of empirical approach has not been addressed yet. In this...

En el método del experimento de elección se supone que el entrevistado es perfectamente racional, está informado y maximiza su utilidad siguiendo una regla de elección perfectamente compensatoria. Sin embargo, es posible que los individuos empleen otras reglas de decisión en sus elecciones...

The need to account for respondents’ preference heterogeneity in stated choice models has motivated researchers to apply random parameter logit and latent class models. In this paper we compare these three alternative ways of incorporating preference heterogeneity in stated choice models and...