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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 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.

In cooperation with a German online retail bank, the aim of this paper is to investigate how the bank should price a new fee-only financial advisory service. Two types of pricing plans differ in terms of their strategies for determining monthly prices: a fixed monthly price that is identical for all clients (i.e. a flat pricing plan) or a monthly price that varies as a function of each client's assets under management (i.e. a volume pricing plan).

With a discrete choice experiment, this article studies client preferences for the two types of plans. To ensure that the respondents understood the financial consequences of their decisions, a price calculator was embedded into the discrete choice experiment to enable the respondents to determine their individual monthly prices based on their assets under management.

Methodologically, the price calculator is useful for simplifying mathematically complex decisions, and it provides additional valuable information for analysis. Substantively, the results show that clients perceive both types of pricing plans as equally attractive; however, the service provider's revenues would increase by up to 12 per cent if it uses the volume pricing plan.

This research extends the stream of literature on the measurement of pricing plan preferences and offers guidance for service industries, such as telecommunications, cloud computing services, insurances, or transportation. It extends the use of discrete choice experiments to study client preferences for different pricing plans and also integrates a decision aid, i.e. a price calculator, in the experiment to assist clients in comparing alternatives more effectively.

This paper aims to report on homebuyers’ preferences and willingness to pay for installed home photovoltaic systems. Their influence on the market position of a dwelling is relatively unknown. Considering that expected lifespan of photovoltaic systems is at least 25 years, it is likely that many dwellings with a photovoltaic system will enter the housing market.

Few houses with installed photovoltaic systems have been sold in the market to date. Lack of real market data imposes a method based on the stated preference data. Therefore, the general preferences toward photovoltaic systems are determined by a discrete choice model based on responses of 227 homebuyers in the Eindhoven region, The Netherlands. Further, the model estimates were used to assess the indirect willingness to pay for home photovoltaic systems. This initial willingness to pay is further reassessed with the direct willingness to pay collected in an open-ended questionnaire format.

Results of the model show that the homebuyers’ preferences for home photovoltaic systems are large and significant. In addition to general preferences, this article reports on the taste heterogeneity carried out by separating observations based on the respondents’ characteristics. For example, photovoltaic systems are more appealing to homebuyers in more urban or central neighbourhoods. Further, the results of the direct survey lead to the conclusion that people are probably willing to pay close to the replacement value of the system and only 22 per cent of all respondents did not want to pay anything for the installed photovoltaic system.

These findings are exploratory and they raise a number of questions for further investigations, such as those regarding the real estate value of the installed photovoltaic systems. The reported findings must be regarded as local, thus further research is necessary to understand the impact on European housing markets.

Preferences and willingness to pay for home photovoltaic systems can provide a variety of economic, social and political recommendations to different interested parties such as homeowners, buyers, realtors, retailers, energy companies and governments. For instance, a homeowner would like to know what would be the effect of a photovoltaic system on the housing market.

As per the knowledge of authors, this is the first paper to estimate the impact of an installed photovoltaic system on housing choice, measured by stated choice data in the local housing market. It expands the existing body of knowledge for increasingly important issues of valuing and measuring preferences for photovoltaic systems installed on dwellings.

The purpose of this paper is to explore farmer acceptance of a biofortified staple food crop in a developing country prior to its commercialization. The paper focuses on the hypothetical introduction of a high-iron pearl millet variety in Maharashtra, India, where pearl millet is among the most important staple crops.

A choice experiment is used to investigate farmer preferences for and trade-offs among various production and consumption attributes of pearl millet. The key pearl millet attributes studied include days it takes pearl millet to mature, color of the roti (flat bread) the grain produces, the presence of high-iron content (nutritional attribute), and the price of the pearl millet seed. Choice data come from 630 pearl millet-producing households from three purposefully selected districts of Maharashtra. A latent class model is used to investigate the heterogeneity in farmers’ preferences for pearl millet attributes and to profile farmers who are more or less likely to choose high-iron varieties of pearl millet.

The results reveal that there are three distinct segments in the sample, and there is significant heterogeneity in farmer preferences across these segments. High-iron pearl millet is valued the most by larger households that produce mainly for household consumption and currently have lower quality diets. Households that mainly produce for market sales, on the other hand, derive lower benefits from consumption characteristics such as color and nutrition.

The main limitation of the study is that it uses a stated preference choice experiment method, which suffers from hypothetical bias. At the time of implementing this study biofortified high-iron pearl millet varieties were not yet developed, therefore the authors could not have implemented revealed preference elicitation methods with real products and payment.

The method used (stated preference choice experiment method) is commonly used to value non-market goods such as environmental goods and products that are not yet in the market. It’s application to agriculture and in developing countries is increasing. As far as the authors know this is the first choice experiment implemented to investigate farmer/consumer preferences for biofortified crops. The study presents valuable information for development and delivery of biofortified crops for reducing micronutrient deficiencies.

Fatigue effects related to answering a sequence of choice tasks have received much scrutiny in the stated choice experiments (SCE) literature. However, decision fatigue related to the time of day when respondents answer questionnaires has been largely overlooked in this literature even though time of day related fatigue effects are well known in the psychology literature. The purpose of this paper is to hypothesize that variations in the time of day when respondents answer an online food choice experiment will translate into observable fatigue effects in the food choices.

An empirical SCE concerning food choices is conducted using a web-based questionnaire for interviews in a pre-recruited online panel of consumers. Timestamps collected during the online interviews provide knowledge about the time of day at which each respondent has answered the survey. This information is linked with knowledge from a food sociology survey on typical meal times as well as biophysical research linking food intake to blood sugar and mental energy in order to generate a proxy variable for each respondent’s level of mental energy when answering the food choice tasks in the questionnaire.

Results show evidence of a time of day effect on error variance in the stated food choices as well as the subsequently estimated market share predictions. Specifically, respondents provide less consistent answers during the afternoon than at other times of the day.

The results indicate that time of day can affect responses to an online survey through increased fatigue and correspondingly less choice consistency. Thus, especially online surveys might account for this in data analysis or even restrict accessibility to the online survey for certain times of day.

The purpose of this study is to implement an innovative approach to analyze children’s impact on family decisions. Furthermore, a new strategy to collect children’s preferences is shown to reduce the lack of children’s voices in the tourism literature.

A stated preference (SP) experiment with a two-step procedure is applied: in the first step, children’s preferences are collected through pictures and a rating scale based on emoticons; in the second step, the SP is submitted to their parents to understand how children influence decisions. Parents faced six choice tasks, each of them showing three different activities that they could evaluate on the basis of three attributes: the cost of the activity, the distance from the place of interview and children’s degree of satisfaction in participating in the activity.

The majority of children interviewed show a high preference for swimming pool/lido, and their preference is highly taken into account by parents. Parents prefer closer and cheaper activities, but children’s preferences play a fundamental role in the final choice. In addition, parents are willing to pay an extra 100 CHF, for the whole family, to choose an activity that fulfills children’s preferences, rather than an activity that children do not like.

The originality contribution of this paper consists of using an innovative procedure to collect children’s preferences and combine them in an SP experiment submitted to their parents. Children’s influence on decisions is also measured by parent’s willingness to pay to satisfy their preferences.

This paper seeks to analyze consumer preferences toward fresh rabbit meat and obstacles and interest in consuming the product.

The paper uses the dual response choice experiment (DRCE) design which allows for analyzing forced and unforced options in choice experiments using the same sample. The heteroscedastic extreme‐value (HEV) model is used due to its relaxation of the restrictive assumption made in the multinomial logit model regarding the identically distributed error term across alternatives. The empirical analysis uses consumer‐level questionnaires to elicit information regarding consumer attitudes toward rabbit meat in Catalonia (Spain).

The results demonstrate a higher preference for rabbit meat from “Catalan” origin followed by higher quality certification information. Convenience and “ready‐to‐eat” products made from rabbit meat may help bolster increased consumption. An effective communication campaign is needed to educate individuals regarding the health characteristics of rabbit compared to other types of meat. Furthermore, results demonstrate that the ordering of attributes is not significantly different from forced and non‐forced choices obtained from the DRCE design. However, significant differences on the magnitude of the preferences for some attributes' levels are found.

From a methodological point‐of‐view, the study follows a similar design to the dual response choice experiments. However, the study is differentiated by asking consumers whether they are willing to buy the product. More emphasis is made on the purchasing context of the task leading consumers to focus more on their budget constraints by considering the price. The study uses the DRCE design as an alternative of the traditional single stage choice experiments. Owing to budgets constraint, the study could be improved by comparing results from both designs. At the empirical level, it would be interesting to extend the study to other geographical parts in Spain.

The study can help policy makers in stimulating demand for rabbit meat. Rabbit meat farmers in Catalonia were forced to abandon their farms due to the lack of demand. Consumption has decreased dramatically. As recommended in the paper, high quality labelling of the meat, improving the carcass format and its presentation and the healthiest characteristic of the meat could be a good way to promote and stimulate demand.

From the empirical point‐of‐view, this study, to the authors' knowledge, is the first application of CE and CV to analyze consumers' preferences towards rabbit meat. Furthermore, it is the first paper that applies the HEV model in agro‐food economics and specifically towards rabbit meat.

The purpose of this research is to reveal consumer preferences towards innovative last-mile parcel delivery and more specifically unmanned aerial delivery drones, in comparison to traditional postal delivery (postie) and the recent rise of parcel lockers in Australia. The authors investigate competitive priorities and willingness to pay for key attributes of parcel delivery (mode, speed, method and time window), the role of contextual moderators such as parcel value and security and opportunities for logistics service providers in the growing e-commerce market.

A survey involving stated choice experiments has been conducted among 709 respondents in urban Australia. The authors estimated panel error component logit models, derived consumer priorities and deployed 576 Monte Carlo simulations to forecast potential delivery mode market shares.

The study results suggest that people prefer postie over drone delivery, all else equal, but that drone deliveries become competitive with large market shares if they live up to the premise that they can deliver faster and cheaper. Both drone and postie become less attractive relative to parcel lockers when there is no safe place to leave a parcel at a residence, highlighting the importance of situational context and infrastructure at the receiving end of last-mile delivery. The authors identified opportunities for chargeable add-on services, such as signature for postie and 2-h parcel deliveries for drones.

The authors offer timely and novel insights into consumers preferences towards aerial drone parcel deliveries compared to postie and lockers. Going beyond the extant engineering/operations research literature, the authors provide a starting point and add new dimensions/moderators for last-mile parcel delivery choice analysis and empirical evidence of market potential and competitive attributes of innovative versus traditional parcel delivery alternatives.

This paper aims to explore consumer preference for fresh vegetables labelled as organic in combination with health and environment related quality traits. The study decomposes organic farming into its main quality aspects and measures consumers' preference structure for organic, in general, and for specific organic quality traits in particular.

By means of stated choice preference modelling, the following hypotheses are tested: consumers prefer health over environment related quality traits; the organic label plays a significant role in consumers' choice for organic products; organic farming is perceived as healthier and more environmentally friendly than conventional farming; purchase intention is mainly driven by health related quality traits; both health and environmental concerns influence purchase frequency, though to a different extent. The choice experiment was completed by 527 participants, with four repetitions per participant.

The health‐related traits score better than environmental traits in shaping consumer preference for organic vegetables. Consumers prefer organic products over B‐branded products, but not over A‐branded products, which suggests that consumers classify organic products among other quality niche products. However, they attribute a better score to the health and environment related quality traits of organic products, indicating a difference in quality cues between organic products and quality products in general. Price becomes less important, whereas presence of an organic label becomes more important with increasing buying intensity of organic vegetables. Undesirable traits, such as pesticide residue levels trigger a stronger response than desirable traits, such as environmental or health benefits.

The measurement of the role of health and environment quality traits in consumers' decision to buy organic or not is of relevance given the current debate on the factual differences between organic and conventional vegetables. Furthermore, the use of the stated choice preference to test the hypotheses is original and relevant.