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PHƯƠNG PHÁP CHOICE EXPERIMENTS

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CHOICE
MODELING
BENEFIT
TRANSFER
ASSIGNMENT
GROUP 10
HOANG TIEN DUONG
VO MINH QUAN
LE NGUYEN NGHI PHONG
PHAM NGOC TUAN

ASSIGNMENT OF BENEFIT-COST ANALYSIS
CHOICE MODELING AND BENEFIT TRANSFER

Choice modeling (CM) is a state preference technique which is useful to valuate non-market
values. Choice modeling has the potential for providing much information about people’s
preferences; it appears to be particularly suited to benefit transfer because of its capacity to allow
for differences in environmental improvement. Choice modeling is also shown to be more suited to
benefit transfer of implicit price. In our assignment, we try to figure out the effects, problems of
choice modeling and benefit transfer technique in theoretical aspects and in practical implication.
1. CHOICE MODELING & BENEFIT TRANSFER IN THEORICAL ASPECT

Choice modeling actually refers to a set of approaches, also known as “conjoint analysis” or
attribute-based method, they were they include "any decomposition method that estimates the
structure of a consumer's preferences given his/her overall evaluations of a set of alternatives that
are prespecified in terms of levels of different attributes allows the valuation of any scenario within
the attribute space used in the choice modeling application. This has advantages for cost-benefit
analysis where multiple alternatives are generally considered.
The first objective was to test the validity of using the choice modeling approach for
estimating non-use values. Validity can be measured in 3 ways: predictive validity, theoretical
validity and content validity (Mitchell and Carson 1989). There was no test of predictive validity
for non-use value because of limited direct of related market data available. In testing theoretical
validity, beside using chi-square, it is also demonstrated when the coefficients for the independent
variables have a priori expected signs and are significant. The coefficients of most concern are for
the choice set attributes, important because they are used to generate estimates of non-use values.
Content validity is tested by using the questions where respondents were asked to evaluate various
aspects of the questionnaire. T-tests were conducted to determine whether, on average, problems
with content exist. This involved testing the null hypothesis of whether the mean is less than (or
greater than) or equal to 3.0(for example), depending on a priori expectations:
H0 : µ ≤ 3
or
H0 : µ ? 3
H1 : µ > 3
H1 : µ < 3
Where µ ...
CHOICE
MODELING
BENEFIT
TRANSFER
ASSIGNMENT
GROUP 10
HOANG TIEN DUONG
VO MINH QUAN
LE NGUYEN NGHI PHONG
PHAM NGOC TUAN
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