âConsumer's behavior towards extra virgin olive oil: hypothetical and ...

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Ph.D. Thesis ProposalAcademic Year2012-2013“Consumer’s behavior towards extra virgin olive oil:hypothetical and non-hypothetical discrete choiceexperiment methods”Thesis proposal to be submitted to the Institut de SostenibilitatUniversitat Politècnica de CatalunyaByAhmed YANGUIUnder the supervision ofThesis director: Prof. José María GilCo-director: Dr. Montserrat Costa-FontPhD Program: SustainabilityMain Subjects: Agricultural Economics and Applied economics2
1. IntroductionSince the introduction of discrete choice experiments by Louviere and Hensher (1982)and Louviere and Woodworth (1983) it has been used by a growing number of studies.Discrete choice experiments are appealing as value derivation techniques because theyare consistent with both Lancaster’s microeconomic approach (Lancaster, 1966) andRandom Utility Theory (RUT) (McFadden, 1974). In the other words, Discrete choicemethods assume that individuals are rational and make choices to maximize their utilitytaking into account budget constraint, and their utility derived from the differentcharacteristics, or attributes, that a good possesses, rather than directly from the goodper se. Accordingly, a change in the level of an attribute describing a given alternativegood may cause respondent to favor that good over another that is perceived asproviding an inferior combination of attributes.In discrete choice experiments, respondents are asked to select their preferredalternative from a given set (the choice set), and are typically asked to perform asequence of such choices giving rise to a panel of discrete choices. Experimental designtheory is used to construct the alternatives, which are defined in terms of both theirattributes and the levels that these attributes could take (see Louviere et al., 2000 andStreet and Burgess, 2007).Despite the widespread use of discrete choice experiments, evidences presented innumerous papers indicate the existence of related various issues based on therepresentative level of the sample (widely and limit sample size), preference type (statedpreferences, revealed preference), empirical setting (hypothetical and non-hypotheticalsituation), the selected model for the estimation (regression, logit, probit, hierarchicalBayes), the type of inference estimation procedures (maximum likelihood, Markov1
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