Question

Discuss attribute based choice models as an alternative to contingent valuation.

(The subject is Natural Resource Economics)

Answer 1

Stated preference methods of environmental estimation have been used by economists for decades where behavioral data have restrictions. The contingent valuation method is the oldest stated choice approach, and hundreds of contingent valuation studies have been organized. More recently, and especially over the last decade, a new class of stated choice methods has been developed, which we generically indicate to as attribute-based methods (ABMs). As with contingent valuation, numerous ABM variants stand, employing, for example, different constructs for eliciting choices.
Attribute-based choice needs the knowledge of particular attributes at the time the choice is made, and it demands attribute-by-attribute comparisons across brands. Tends to produce a more nearly perfect decision. Consumer with high purchase involvement or motivation are more likely to make attribute-based choices that most parallel the extended decision-making approach.