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Deleting ‘irrational’ responses from discrete choice experiments: a case of investigating or imposing preferences?

Lancsar, Emily, Louviere, Jordan·2006·Health Economics

Abstract

Investigation of the ‘rationality’ of responses to discrete choice experiments (DCEs) has been a theme of research in health economics. Responses have been deleted from DCEs where they have been deemed by researchers to (a) be ‘irrational’, defined by such studies as failing tests for non‐satiation, or (b) represent lexicographic preferences. This paper outlines a number of reasons why deleting responses from DCEs may be inappropriate after first reviewing the theory underpinning rationality, highlighting that the importance placed on rationality depends on the approach to consumer theory to which one ascribes. The aim of this paper is not to suggest that all preferences elicited via DCEs are rational. Instead, it is to suggest a number of reasons why it may not be the case that all preferences labelled as ‘irrational’ are indeed so. Hence, deleting responses may result in the removal of valid preferences; induce sample selection bias; and reduce the statistical efficiency and power of the estimated choice models. Further, evidence suggests random utility theory may be able to cope with such preferences. Finally, we discuss a number of implications for the design, implementation and interpretation of DCEs and recommend caution regarding the deletion of preferences from stated preference experiments. Copyright © 2006 John Wiley & Sons, Ltd.

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Metadata

Authors
Lancsar, E., & Louviere, J.
Venue
Health Economics
Publisher
Wiley
Published
2006-04-13
Volume
15
Issue
8
Pages
797-811
ISSN
  • 1057-9230 (ISSN-L)
  • 1099-1050
OpenAlex
W2015901745
Cited by
400
References
55
FWCI
23.89
Type
journal article
Language
en
Open access
closed

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Lancsar, E., & Louviere, J. (2006). Deleting ‘irrational’ responses from discrete choice experiments: a case of investigating or imposing preferences? Health Economics. https://doi.org/10.1002/hec.1104

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