Discrete Choice Models and Valuation Experiments

Journal of Economic Studies, Vol. 30, No.6, pp.584-604, 2003

21 Pages Posted: 23 Jan 2006

See all articles by Massimiliano Mazzanti

Massimiliano Mazzanti

University of Ferrara & CERIS CNR, Italy; CESAER INRA, UMR, France

Abstract

This paper presents the results of a choice experiment carried out from August to October 2000 on the visitors of the Galleria Borghese Museum, a worldwide known heritage site located in Rome. The main objective of this work is to study the relevancy of choice experiment techniques as a tool aimed at measuring economic values and assessing user preferences concerning the multi-attribute and multi-value services as supplied by cultural institutions. A set of alternative incremental changes in service attributes showing improvements in supply are designed and presented to visitors. Alternative conditional logit specifications are used for analysing stated choices over the hypothetical incremental changes in museum attributes. Willingness to pay for incremental variations concerning site attributes is positive and statistically significant for most changes. Conditional logit specifications, which incorporate heterogeneity by adding interaction socio-economic terms, are generally robust and do not violate the IIA assumption. In addition, in the present case study, non-IIA models do not outperform conditional logit models. Choice experiments confirm as being a practical and effective tool for non-market valuation, and they should be used to provide information to decision makers for justifying demand led policies.

Keywords: cultural Heritage, Economic value added, valuation experiments

JEL Classification: c9, h4, q26, z1

Suggested Citation

Mazzanti, Massimiliano, Discrete Choice Models and Valuation Experiments . Journal of Economic Studies, Vol. 30, No.6, pp.584-604, 2003, Available at SSRN: https://ssrn.com/abstract=876524

Massimiliano Mazzanti (Contact Author)

University of Ferrara & CERIS CNR, Italy ( email )

via Voltapaletto, 11
Ferrara, 44100
Italy

CESAER INRA, UMR, France ( email )

via Bassini 15
Milan
Italy

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