Discrete choice experiments: a research agenda for experimental accounting
Abstract
Purpose
This paper aims to introduce and illustrate how discrete choice experiments (DCEs) can be used by accounting researchers and present an agenda of accounting-related research topics that might usefully benefit from the adoption of DCEs.
Design/methodology/approach
Each major phase involved in conducting a DCE is illustrated using a capital budgeting case study. The research agenda is based on a review of experimental research in financial accounting, management accounting and auditing.
Findings
DCEs can overcome some of the problems associated with asking decision-makers to rank or rate alternatives. Instead, they ask decision-makers to choose an alternative from a set. DCEs arguably better reflect the realities of real-world decision-making because decision-makers need to make trade-offs between all of the alternatives relevant to a decision. An important advantage that DCEs offer is their ability to calculate willingness-to-pay estimates, which can enable the valuation of non-market goods. Several streams of experimental accounting research would appear well-suited to investigation with DCEs.
Research limitations/implications
While every effort has been made to ensure that this illustration is as generic to as the many potential studies as possible, it may be that researchers seeking to utilise a DCE need to refer to additional literary sources. This study, however, should serve as a useful starting point.
Practical implications
Accounting researchers are expected to benefit from reading this article by being: made aware of the DCE method and its advantages; shown how to conduct a DCE; and provided with an agenda of accounting-related research topics that might usefully benefit from application of the DCE methodology.
Originality/value
It is the authors’ understanding that this is the first article directed to accounting academics regarding the conduct of DCEs for accounting research. It is hoped that this study can provide a useful platform for accounting academics to launch further research adopting DCEs.
Keywords
Acknowledgements
The authors would like to acknowledge the helpful suggestions to an earlier version of this paper provided by attendees at the AFAANZ Conference, Auckland, New Zealand. Valuable feedback was also received from attendees at seminars hosted by Monash University, Melbourne, Australia, and École Hôtelière de Lausanne, Lausanne, Switzerland. The authors also acknowledge the helpful comments provided by the Editor-in-Chief and the anonymous reviewers.
Citation
Turner, M.J. and Coote, L.V. (2017), "Discrete choice experiments: a research agenda for experimental accounting", Meditari Accountancy Research, Vol. 25 No. 1, pp. 158-182. https://doi.org/10.1108/MEDAR-07-2016-0068
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited