School of Economics

2009 Discussion Papers

School of Economics Discussion Paper 09/16
October 2009

A General Treatment of Non-Response Data From Choice Experiments Using Logit Models

Kelvin Balcombe, Iain Fraser

School of Economics
University of Kent

Abstract:

A new approach is developed for the treatment of 'Don't Know' (DK) responses, within Choice Experiments. A DK option is motivated by the need to allow respondents the opportunity to express uncertainty. Our model explains a DK using an entropy measure of the similarity between options given to respondents within the Choice Experiment. We illustrate our model by applying it to a Choice Experiment examining consumer preferences for nutrient contents in food. We find that similarity between options in a given choice set does explain the tendency for respondents to report DK.

JEL Classification: C35, I18, Q18

Keywords: Choice Experiment, Respondent Uncertainty, Bayesian Methods

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