Search results

The author presents new estimates of the probability weighting functions found in rank-dependent theories of choice under risk. These estimates are unusual in two senses. First, they are free of functional form assumptions about both utility and weighting functions, and they are entirely based on binary discrete choices and not on matching or valuation tasks, though they depend on assumptions concerning the nature of probabilistic choice under risk. Second, estimated weighting functions contradict widely held priors of an inverse-s shape with fixed point well in the interior of the (0,1) interval: Instead the author usually finds populations dominated by “optimists” who uniformly overweight best outcomes in risky options. The choice pairs used here mostly do not provoke similarity-based simplifications. In a third experiment, the author shows that the presence of choice pairs that provoke similarity-based computational shortcuts does indeed flatten estimated probability weighting functions.

The purpose of this research is to test how varying the numbers of attributes and alternatives affects the use of heuristics and selective information processing in discrete choice experiments (DCEs). The effects of visual attribute and alternative non-attendance (NA) on respondent choices are analyzed.

Two laboratory experiments that combined eye tracking and DCEs were conducted with 109 and 117 participants in the USA. The DCEs varied in task complexity by the number of product attributes and alternatives.

Results suggest that participants ignore both single attributes and entire alternatives. Increasing the number of alternatives significantly increased attribute NA. Including NA in choice modeling influenced results more in more complex DCEs.

The current experiments did not test for choice overload. Future studies could investigate more complex designs. The choice environment affects decision-making. Future research could compare laboratory and field experiments.

Private and public sectors often use DCEs to determine consumer preference. Results suggest that DCEs with two alternatives are superior to DCEs with four alternatives because NA was lower in the two-alternative design.

This empirical research examined effects of attribute and alternative NA on choice modeling using eye tracking and DCEs with varying degrees of task complexity. Results suggest that accounting for NA reduces the risk of over- or understating the impact of attributes on choice, in that one avoids claiming significance for attributes that might not truly be preferred, and vice versa.

This paper reviews the current literature on theoretical and methodological issues in discrete choice experiments, which have been widely used in non-market value analysis, such as elicitation of residents' attitudes toward recreation or biodiversity conservation of forests.

We review the literature, and attribute the possible biases in choice experiments to theoretical and empirical aspects. Particularly, we introduce regret minimization as an alternative to random utility theory and sheds light on incentive compatibility, status quo, attributes non-attendance, cognitive load, experimental design, survey methods, estimation strategies and other issues.

The practitioners should pay attention to many issues when carrying out choice experiments in order to avoid possible biases. Many alternatives in theoretical foundations, experimental designs, estimation strategies and even explanations should be taken into account in practice in order to obtain robust results.

The paper summarizes the recent developments in methodological and empirical issues of choice experiments and points out the pitfalls and future directions both theoretically and empirically.

The purpose of this paper is to reveal the actual consumer demand for traceable pork by investigating consumer preferences for pork with combined levels of traceability information based on differences in individual consumer preferences, in order to support the government in decision making regarding the gradual construction of safe food markets.

Combinations of four types of traceability information, including farming, slaughter and processing, distribution and sales, and government certification, with price were randomly designed. To identify consumer preferences for these attribute combinations of traceable pork, 215 consumers in Wuxi, Jiangsu Province were investigated using a real choice experiment and the mixed logit model.

Significant heterogeneity was observed in consumer preferences for traceable pork. The information of farming, slaughter and processing, distribution and marketing, and government certification could significantly improve consumer utility. Moreover, consumers had the highest preference for government certification information.

Although numerous studies have been performed on consumer preferences for food safety attributes using a real choice experiment, almost none of them focus on Chinese consumers. Therefore, this study is an attempt to fill this gap. The conclusions of this study can serve as a reference for the Chinese government in developing safe food consumption policies. Although Chinese consumers have cried out for improvement of pork safety, they have different preferences for traceability information; thus, the government must promote traceable food step-by-step, using consumer preferences as a starting point.

The purpose of this paper is to investigate how social comparison and motivation to compete account for elevated risk-taking in fund management corroborated by asset market experiments when performance depends on rank-based incentives.

In two laboratory experiments, university students (n1 = 240/n2 = 120) make choices between risky and certain outcomes of hypothetical sums of money. Both experiments investigate in which direction risky choices in an individual condition (individual risk preference) are shifted when participants compare their performance to another participant's performance (social comparison), being instructed or not to outperform the other (incentive to compete).

In the absence of incentives to compete, participants tend to minimize the differences between expected outcomes to themselves and to the other, but when provided with incentives to compete, they tend to maximize these differences. An independent additional increase in risk-taking is observed when participants are provided with incentives to compete.

Original findings include that social comparison does not evoke motivation to compete unless incentives are offered and that increases in risk-taking depend both on what the other chooses and the incentives.

The purpose of this paper is to illustrate and discuss methodology issues in menu-labelling experiments in commercial full-service restaurants, and to investigate how the menu description and price affects customers’ choice of an organic veal entrée in a Norwegian restaurant.

A menu-labelling experiment was conducted in a fine-dining restaurant during ordinary opening hours over a period of two weeks. The menu description of an organic veal entrée was altered repeatedly and the effect of these changes on the sales of this entrée was investigated.

Adding words to the menu description, such as “organic”, or describing animal welfare had a very limited effect on customers’ choices in the restaurant.

The research illustrates the use of a natural field experiment in a commercial full-service restaurant and discusses strengths and weaknesses of the methodology.

Few experiments have been performed on the effect on credence attributes in commercial full-service restaurants and there is little knowledge about research challenges in menu-labelling experiments. This paper contributes to the knowledge on both issues by conducting a natural field experiment in a fine-dining restaurant.

Storytelling through virtual reality (VR) combines the strengths of cutting-edge technology with traditional informational campaigns. As a tool for climate change mitigation, VR has been shown to educate individuals and stimulate both emotional and cognitive responses that promote pro-environmental behavior. This paper aims to investigate whether these benefits extend to the field of green investing through an experiment conducted with a sample of small business entrepreneurs.

The experimental design involved making choices between bonds varying in maturity dates, annual interest and environmental classification (regular versus green). To identify potential impacts of the immersive experience on investment decisions, these choices were made both before and after exposure to VR videos illustrating the devastating effects of climate change. A multiple price list was employed to elicit subjects' risk preferences, enabling the joint estimation of the treatment effect and the risk and time preference parameters.

The findings indicate that, when risk and time preference parameters are controlled for, a VR experience can nudge toward green investment choices. This effect is more profound among those who already exhibit a greater propensity to opt for green investments.

Previous research shows that negative emotions, such as guilt, affect pro-environmental intentions, as well as actions, while message vividness through immersive experiences is effective in nudging greener behavior. Since analogous results in the framework of financial investments are not currently available, this paper seeks to test whether VR videos depicting the adverse effects of climate change can generate negative emotions associated with experiencing these effects and make them salient in subsequent investment decisions made by small business entrepreneurs.

People often look to the opinions and actions of others to guide their food choices, especially when they are uncertain or unfamiliar with a particular food. This influence can be positive or negative depending on the context and can have an impact on food consumption and health outcomes.

The paper analysed data from 500 young adult consumers in China and employed a multi-study design to examine various aspects of social proof and herd behaviour in food choices. Experiment 1 examined the influence of testimonials from an influential person on buying decisions and eating behaviour. Experiment 2 explored whether herd behaviour drives food options. Experiment 3 assessed the influence of social proof on food choices. Chi-square tests of independence were conducted to examine the relationship between social proof and food choice, as well as herd behaviour and food decision-making. Several logit regression analyses were performed to identify the factors that drive consumers' susceptibility to social proof and herding.

The results indicated that the source of feedback, whether from an influential person or a family member, did not have a statistically significant effect on the likelihood of following the food guide recommendations. The preference for a healthier food option was stronger than following the herd. In contrast, social proof in the form of reviews and ratings influenced participants' choices. The paper highlights the usefulness for stakeholders and policymakers seeking to promote healthier eating habits.

The originality lies in its comprehensive approach, combining multiple experiments and analytical methods.

This study aims to examine decision factors for global sourcing, differentiated into transcontinental and continental sourcing to obtain insight into locational aspects of sourcing decisions and global trends. This study analyzed various country perceptions to reveal their influence on sourcing decisions. The country of origin (COO) theory explains why certain country perceptions and images influence purchasing experts in their selection of suppliers.

This study used a two-study approach. In Study 1, the authors conducted discrete choice card experiments with 71 purchasing experts located in Europe and the USA to examine the importance of essential decision factors for global sourcing. Given the clear evidence that location is a factor in sourcing decisions, in Study 2 the authors investigated purchasers’ perceptions and images of countries, adding country ranking experiments on various perceived characteristics such as quality, price and technology.

Study 1 provides evidence that the purchasers’ personal relationship with the supplier plays a decisive role in the supplier selection process. While product quality and location impact sourcing decisions, the attraction of the buying company and cultural barriers are less significant. Interestingly, however, these factors seem as important as price to respondents. This implies that a strong relationship with suppliers and good quality products are essential aspects of a reliable and robust supply chain in the post-COVID-19 era. Examining the locational aspect in detail, Study 2 linked the choice card experiments with country ranking experiments. In this study, the authors found that purchasing experts consider that transcontinental countries such as Japan and China offer significant advantages in terms of price and technology. China has enhanced its quality, which is recognizable in the country ranking experiments. Therefore, decisions on global sourcing are not just based on such high-impact factors as price and availability; country perceptions are also influential. Additionally, the significance of the locational aspect could be linked to certain country images of transcontinental suppliers, as the COO theory describes.

The new approach divides global sourcing into transcontinental and European sourcing to evaluate special decision factors and link these factors to the locational aspect of sourcing decisions. To deepen the clear evidence for the locational aspect and investigate the possible influence of country perceptions, the authors applied the COO theory. This approach enabled authors to show the strong influence of country perception on purchasing departments, which is represented by the locational effect. Hence, the success of transcontinental countries relies not only on factors such as their availability but also on the purchasers’ positive perceptions of these countries in terms of technology and price.