Choice Experiment Valuation
A choice experiment (discrete choice experiment, DCE) is an attribute-based stated-preference method that values non-market goods by describing them as bundles of characteristics and asking respondents to choose repeatedly among competing alternatives — one of which always carries a cost. Grounded in random utility theory, the choices are modeled with a discrete-choice model whose coefficients reveal the relative value of each attribute, and dividing any attribute's coefficient by the cost coefficient yields its marginal willingness to pay.
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- McFadden, D. (1974). Conditional logit analysis of qualitative choice behavior. In P. Zarembka (Ed.), Frontiers in Econometrics (pp. 105–142). New York: Academic Press. · ISBN 9780127761503
- Louviere, J. J., Hensher, D. A., & Swait, J. D. (2000). Stated Choice Methods: Analysis and Applications. Cambridge University Press. · ISBN 9780521788304
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