Accounting for response biases in latent-class models for choices and attitudes

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Abstract

We propose a latent-class model (LCM) to analyze contingent-valuation surveys incorporating attitudinal questions capturing protest reasons to identify classes of respondents with similar preferences and attitudes. In contrast to a standard LCM, our model ensures that classes are not contaminated by different types of response biases. Using data regarding the preservation of a world-heritage recreation site, low- and high-protester classes are identified. The difference in estimated willingness to pay (WTP) in these classes is €26, reflecting protest issues. If response biases were ignored, different classes would be identified and the corresponding difference in WTPs would be inflated by 130%.

Original languageEnglish
Pages (from-to)586-603
Number of pages18
JournalLand Economics
Volume91
Issue number3
DOIs
Publication statusPublished - 2015

Keywords

  • CROSS-CULTURAL RESEARCH
  • CONTINGENT VALUATION
  • MARKETING-RESEARCH
  • PROTEST RESPONSES
  • LOGIT MODEL
  • STYLE
  • HEALTH

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