Accounting for Response Biases in Latent-Class Models for Choices and Attitudes

We propose a latent-class model (LCM) to analyze contingent-valuation surveys incorporating attitudinal questions capturing protest reasons to identify classes of respondents with similar preferences and attitudes. In contrast to a standard LCM, our model ensures that classes are not contaminated by...

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Bibliographic Details
Published in:Land economics 2015-08, Vol.91 (3), p.586-603
Main Authors: Cunha-e-Sá, Maria A., Nunes, Luis C., Otrachshenko, Vladimir
Format: Article
Language:English
Subjects:
Attitudes
Correspondence
Economic theory
Inflation
Preferences
Studies
Valuation
Willingness to pay
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Summary:We propose a latent-class model (LCM) to analyze contingent-valuation surveys incorporating attitudinal questions capturing protest reasons to identify classes of respondents with similar preferences and attitudes. In contrast to a standard LCM, our model ensures that classes are not contaminated by different types of response biases. Using data regarding the preservation of a world-heritage recreation site, low- and high-protester classes are identified. The difference in estimated willingness to pay (WTP) in these classes is €26, reflecting protest issues. If response biases were ignored, different classes would be identified and the corresponding difference in WTPs would be inflated by 130%.
ISSN:0023-7639
1543-8325
DOI:10.3368/le.91.3.586