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Applied Choice Analysis: A Primer

Hensher, David A., Rose, John M., Greene, William H.·2005·Cambridge University Press eBooks

DOI 10.1017/cbo9780511610356

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Abstract

Almost without exception, everything human beings undertake involves a choice. In recent years there has been a growing interest in the development and application of quantitative statistical methods to study choices made by individuals with the purpose of gaining a better understanding both of how choices are made and of forecasting future choice responses. In this primer the authors provide an unintimidating introduction to the main techniques of choice analysis and include detail on themes such as data collection and preparation, model estimation and interpretation and the design of choice experiments. A companion website to the book provides practice data sets and software to estimate the main discrete choice models such as multinomial logit, nested logit and mixed logit. This primer will be an invaluable resource to students as well as of immense value to consultants and professionals, researchers and anyone else interested in choice analysis and modelling.

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Method
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Choice Experiments
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“While RU1 can be used to identify one of the dissimilarity parameters, it should be normalized to 1 (see Hensher et al., 2005).”
BackgroundMethod
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“Formally, in the LCM employed here, the utility that farmer i, who belongs to a particular segment s, derives from choosing milpa alternative 3 See Louviere et al. (2000), Bennett and Blamey (2001) and Hensher et al. (2005), for an introduction to the choice experiment method.”
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“The DCE design has shortcomings: at the time we began our study, the experimental design was consistent with prevailing guidance (Hensher et al. 2005) and published studies (Scott et al. 2003; Hanson et al. 2005).”
Result
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“More recently, choice experiments (CE) have gained in popularity as an alternative to CV (e.g. Hanley et al. 1998, Hensher et al. 2005, Hanley et al. 2006).”
Background
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“A stated choice (SC) experiment is developed in which we systematically vary combinations of levels of each attribute to reveal new opportunities relative to the existing circumstance of time-cost-service level on offer (see Hensher 1994; Louviere et al. 2000; Hensher et al. 2005; Rose et al. 2008).”
BackgroundSelf-citation
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Franchino, F., & Zucchini, F. (2014) · Political Science Research and Methods · doi:10.1017/psrm.2014.24 · Cited by 102
A mixed logit model of health care provider choice: analysis of NSS data for rural India
Borah, B. J. (2006) · Health Economics · doi:10.1002/hec.1166 · Cited by 99
Estimating wetland biodiversity values: a choice modelling application in Vietnam's Mekong River Delta
Nam, T., & Bennett, J. (2008) · Environment and Development Economics · doi:10.1017/s1355770x08004841 · Cited by 100
“CM is consistent with random utility theory (RUT) (see Hensher et al., 2005 for detailed discussions).”
BackgroundMethodInfluential
Patients’ preferences: a discrete-choice experiment for treatment of non-small-cell lung cancer
Mühlbacher, A. C., & Bethge, S. (2014) · The European Journal of Health Economics · doi:10.1007/s10198-014-0622-4 · Cited by 103
SIMULTANEOUS MEASUREMENT OF TIME AND RISK PREFERENCES: STATED PREFERENCE DISCRETE CHOICE MODELING ANALYSIS DEPENDING ON SMOKING BEHAVIOR*
Ida, T., & Goto, R. (2009) · International Economic Review · doi:10.1111/j.1468-2354.2009.00564.x · Cited by 97
Design and Analysis of Choice Experiments Using R: A Brief Introduction
Aizaki, H., & Nishimura, K. (2008) · Agricultural Information Research · doi:10.3173/air.17.86 · Cited by 107
Valuing the work of unpaid community health workers and exploring the incentives to volunteering in rural Africa
Kasteng, F., Settumba, S. N., Källander, K., Vassall, A., & the inSCALE Study Group (2015) · Health Policy and Planning · doi:10.1093/heapol/czv042 · Cited by 97
“Although based on stated preferences its trade-off design resembles real life decision making better than ranking and rating techniques and can be useful for policy analysis and planning when choices cannot be observed from revealed preferences (Hensher et al. 2005; Train 2009).”
Factors influencing farmers’ participation in contractual biodiversity conservation: a choice experiment with northern Australian pastoralists
Greiner, R. (2015) · Australian Journal of Agricultural and Resource Economics · doi:10.1111/1467-8489.12098 · Cited by 95
“Choice experiments are based on the presumption that participants evaluate the alternatives presented to them in a choice task by choosing the alternative (among those presented in the task), which gives the greatest relative utility (Hensher et al. 2005).”
Background
How do physician assessments of patient preferences for colorectal cancer screening tests differ from actual preferences? A comparison in Canada and the United States using a stated‐choice survey
Marshall, D. A., Johnson, F. R., Kulin, N. A., Özdemir, S., Walsh, J. M. E., Marshall, J. K., Bebber, S. L. V., & Phillips, K. A. (2009) · Health Economics · doi:10.1002/hec.1437 · Cited by 95
“Thus the coefficient for each omitted category is the negative sum of the included categories and the mean effect is 0 (Bech and Gyrd-Hansen, 2005; Hensher et al., 2005).”
Background
Selective Increase of Intention-Based Economic Decisions by Noninvasive Brain Stimulation to the Dorsolateral Prefrontal Cortex
Nihonsugi, T., Ihara, A. S., & Haruno, M. (2015) · Journal of Neuroscience · doi:10.1523/jneurosci.3885-14.2015 · Cited by 93
Patients’ and urologists’ preferences for prostate cancer treatment: a discrete choice experiment
de Bekker-Grob, E. W., Bliemer, M. C. J., Donkers, B., Essink‐Bot, M., Korfage, I. J., Roobol, M. J., Bangma, C. H., & Steyerberg, E. W. (2013) · British Journal of Cancer · doi:10.1038/bjc.2013.370 · Cited by 93
“As such, we further blocked the design into two versions of questionnaires containing 12 choice sets each (Hensher et al, 2005).”
BackgroundMethod
The influence of age on recreational trail preferences of urban green-space visitors: a discrete choice experiment with digitally calibrated images
Arnberger, A., & Eder, R. (2011) · Journal of Environmental Planning and Management · doi:10.1080/09640568.2010.539875 · Cited by 92
“Such alternatives – in this case trail scenarios – are defined as combinations of factors (Hensher et al. 2005).”
Background
Standardised outcomes in nephrology – Haemodialysis (SONG-HD): study protocol for establishing a core outcome set in haemodialysis
Tong, A., Manns, B., Hemmelgarn, B. R., Wheeler, D. C., Tugwell, P., Winkelmayer, W. C., Biesen, W. V., Crowe, S., Kerr, P. G., Polkinghorne, K. R., et al. (2015) · Trials · doi:10.1186/s13063-015-0895-7 · Cited by 94

Authors: Hensher, D. A., Rose, J. M., & Greene, W. H.
Affiliations: The University of Sydney (AU)
New York University (US)
ORCID: Hensher, David A.
Rose, John M.
Greene, William H.
Venue: Cambridge University Press eBooks
Publisher: Cambridge University Press
Published: 2005-06-02
DOI: 10.1017/cbo9780511610356
OpenAlex: W3152367353
Cited by: 1,823
References: 0
Citations by year: 2026: 62 · 2025: 87 · 2024: 104 · 2023: 94 · 2022: 104 · 2021: 121 · 2020: 109 · 2019: 127 · 2018: 95 · 2017: 92 · 2016: 105 · 2015: 136 · 2014: 103 · 2013: 95 · 2012: 98
FWCI: 34.17
Type: book
Language: en
Open access: closed
Licence: www.cambridge.org/core/terms (unspecified, 2652 d)
Locations: Cambridge University Press eBooks (publishedVersion)
Topics: Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic and Environmental Valuation
Social Sciences › Decision Sciences › General Decision Sciences › Decision-Making and Behavioral Economics
Social Sciences › Transportation › Transportation Planning and Optimization
Keywords: discrete choice models, multinomial logistic regression, nested logit model, mixed logit, discrete choice experiment, choice experiment design

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