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Discrete choice models and valuation experiments

Massimiliano Mazzanti (Department of Economics, University of Ferrara, Ferrara, Italy)

Journal of Economic Studies

ISSN: 0144-3585

Article publication date: 1 December 2003

3075

Abstract

This paper presents the results of a choice experiment carried out from August to October 2000 on the visitors of the Galleria Borghese Museum, a worldwide known heritage site located in Rome. The main objective of this work is to study the relevancy of choice experiment techniques as a tool aimed at measuring economic values and assessing user preferences concerning the multi‐attribute and multi‐value services as supplied by cultural institutions. A set of alternative incremental changes in service attributes showing improvements in supply are designed and presented to visitors. Alternative conditional logit specifications are used for analysing stated choices over the hypothetical incremental changes in museum attributes. Willingness to pay for incremental variations concerning site attributes is positive and statistically significant for most changes. Conditional logit specifications, which incorporate heterogeneity by adding interaction socio‐economic terms, are generally robust and do not violate the IIA assumption. In addition, in the present case study, non‐IIA models do not outperform conditional logit models. Choice experiments confirm as being a practical and effective tool for non‐market valuation, and they should be used to provide information to decision makers for justifying demand led policies.

Keywords

Citation

Mazzanti, M. (2003), "Discrete choice models and valuation experiments", Journal of Economic Studies, Vol. 30 No. 6, pp. 584-604. https://doi.org/10.1108/01443580310504453

Publisher

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MCB UP Ltd

Copyright © 2003, MCB UP Limited

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