RT Journal Article
SR Electronic
T1 Unraveling the Choice Format Effect: A Context-Dependent Random Utility Model
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 730
OP 743
DO 10.3368/le.87.4.730
VO 87
IS 4
A1 Zhang, Jing
A1 Adamowicz, Wiktor L.
YR 2011
UL http://le.uwpress.org/content/87/4/730.abstract
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)