PT  - JOURNAL ARTICLE
AU  - Zhang, Jing
AU  - Adamowicz, Wiktor L.
TI  - Unraveling the Choice Format Effect: A Context-Dependent Random Utility Model
AID  - 10.3368/le.87.4.730
DP  - 2011 Nov 01
TA  - Land Economics
PG  - 730--743
VI  - 87
IP  - 4
4099  - http://le.uwpress.org/content/87/4/730.short
4100  - http://le.uwpress.org/content/87/4/730.full
SO  - Land Econ2011 Nov 01; 87
AB  - A few recent studies report that preferences elicited from a two-alternative choice format are different from those elicited from a three-alternative choice format, when both choice set designs contain a status quo option. We hypothesize that the choice format effect might disappear when we estimate a random utility model (RUM) that allows for context-dependent preferences. Based on the estimated context-dependent RUM, we find that the choice format effect is likely the result of two offsetting effects: a task complexity effect that increases the probability of choosing the status quo option, and a preference matching effect, which decreases the probability. (JEL C25, Q51)