Reliability of stated preferences for cholera and typhoid vaccines with time to think in Hue, Vietnam.
Cook, Joseph ; Whittington, Dale ; Canh, Do Gia 等
I. INTRODUCTION
Stated preference surveys contingent valuation (CV) and stated
choice (SC)--are typically administered to respondents in the course of
one phone or in-person interview. Though the format differs, these
surveys ask respondents about their willingness to trade income for some
environmental or health improvement that is not traded in a market.
Because one is not often asked this type of question in everyday life,
the answers do not necessarily come easily or reflexively. As every
salesperson knows, people often change their minds when they are given
overnight to think about a decision and discuss it with others. Despite
this, only a few stated preference researchers have explored the effect
of giving respondents time to consider their answers. Whittington et al.
(1992) and Lauria et al. (1999) gave respondents overnight to think
about their answers to a CV survey, but no similar research has been
done for SC surveys, which are growing in popularity and are typically
more cognitively difficult for respondents to complete than CV surveys.
We hope to fill this gap in the literature. We use a split-sample
experiment to explore the effect of giving respondents time to think
about their answers in an in-person SC survey of individuals'
demand for cholera and typhoid vaccines in Hue, Vietnam. In addition, we
analyze the data using Train and Sonnier's (2003) state-of-the-art
mixed logit/hierarchical Bayes (MLHB) estimating procedure. Using Monte
Carlo--Markov chain numerical methods, Train and Sonnier's approach
avoids several strong assumptions typically employed in estimating
qualitative response data. It allows the researcher to model taste
parameters that (1) vary among respondents, (2) are correlated, and (3)
vary according to distributions other than the normal distribution. This
research is one of the first applications of this procedure, and the
first using data from a developing country.
We examine two principal questions. First, does giving respondents
time to think increase the quality of responses; that is, does it reduce
the number of responses that violate utility theory (i.e., internal
validity tests)? Second, do respondents who were given time to think
give us different answers than those who complete the interview in one
session? In particular, does giving respondents extra time affect their
willingness to pay (WTP) for vaccines?
We find that respondents who were given time to think failed
internal validity tests less frequently, although the number of failures
in both subsamples was surprisingly low. Respondents with time to think
had lower average WTP for the vaccines than respondents without. We also
find that respondents with time to think were more sensitive to the
price of the vaccine and to the levels of the two other vaccine
attributes (effectiveness in protecting against the disease and the
duration of protection), though this difference in taste parameters may
be due to differences in variance (scale).
The next section explains why we used stated preference techniques
for this application and reviews the literature both on measuring
internal validity failures in SC studies and on the effect of giving
respondents time to think. The third section discusses our research
design, and the fourth introduces our data analysis plan and discusses
the advantages of the MLHB estimating procedure. The fifth section
briefly describes the study site. The sixth section presents our
results, and the final section concludes with a discussion of the
results.
II. BACKGROUND
Using Stated Preference Methods to Measure Vaccine Demand
Though not the primary focus of this article, the overall objective
of our research in Hue was to estimate demand for new-generation
vaccines against cholera and typhoid fever. We used stated preference
techniques (CV, SC) because although vaccines for both cholera and
typhoid fever exist, they are not widely available to households in Hue.
As such, we asked respondents whether they would a purchase a
hypothetical vaccine if it were available for sale. These techniques
have been widely applied in the environmental field for goods that are
not sold in a marketplace (see Hanemann 1994 and Carson 2000 for an
introduction to this literature, and Whittington 2002 for applications
in developing countries). They have also been used in the health field
for goods or services that are not widely available, including vaccines
(Canh et al. 2006; Cropper et al. 2004; Suraratdecha et al. 2005;
Whittington et al. 2002, 2003).
We conducted both CV and SC surveys in Hue during the summers of
2002 and 2003. Our CV scenario presented respondents with one type of
vaccine (cholera or typhoid) and asked if they would purchase it at a
given price. In contrast, the SC survey asked respondents to complete
several choice tasks, each of which involved choosing between a cholera
vaccine, a typhoid vaccine or neither (see Figure 1 for an example task;
more details on the research design are provided in the following
discussion). The SC framework allows us to explore how respondents trade
off different vaccine attributes, to directly compare respondents'
preferences for cholera and typhoid fever vaccines, and to test each
respondent for preference errors. (1)
Internal Validity Tests
SC surveys may be designed to test whether a respondents'
preferences conform to the axioms of utility theory, that is, that they
be complete, monotonic, and transitive (Mas-Colell et al. 1995).
Completeness requires that given two vaccines, a person must prefer one
or the other or be indifferent between the two. Monotonic preferences
require that other attributes equal, one should prefer a vaccine with
lower price to one with a higher price. Transitive preferences require
that if a respondent prefers vaccine X to vaccine Y, and prefers vaccine
Y to vaccine Z, he must also prefer vaccine X to vaccine Z. In addition,
it may be reasonable to require that preferences be stable within a
series of choice questions. For example, if a respondent chooses a
typhoid vaccine over a cholera vaccine, he should not reverse his
preference if asked the same question a few minutes later. Throughout
this article we will refer to preferences which are complete, monotonic,
transitive, and stable as consistent preferences. If a respondent
answers in a way that is inconsistent with utility theory, we call this
a preference error. Appendix B discusses the approach for identifying
errors in more detail.
[FIGURE 1 OMITTED]
Surprisingly few nonmarket SC studies have been designed to
identify (or report) preference errors. Johnson et al. (2000) summarizes
results on the consistency of answers from three SC experiments. Though
they do not report transitivity errors, the number of stability and
consistency errors varies significantly among the three studies. They
find that 65% to 90% of respondents made at least one monotonicity
error. The authors find that education, ideology, and fatigue are
statistically significant predictors of the number of errors, though in
one of the three studies no personal or socioeconomic characteristics
were significant predictors. Carlsson and Martinsson (2001) also test
for transitivity and stability errors statistically, and find only 1
intransitive respondent in a total sample of 35 respondents.
Similarly, Alpizar and Carlsson (2003) found that the order in
which the tasks on transportation choices were presented did not affect
preferences. This last study is the only one we are aware of that looks
for preference errors using respondents from developing countries,
though it is worth noting two points. First, the authors identify
preference errors using likelihood ratio tests to see if the two
subsample populations' patterns of responses are statistically
different; we designed choice tasks to enable us to identify individual
respondents who make preference errors. Second, they interviewed only
car owners in the capital city of Costa Rica, a sample likely to be
richer and more educated than many developing country populations.
Time to Think
Several studies have examined the impact of giving respondents more
time to think about a CV scenario (Lauria et al. 1999; Whittington et
al. 1992, 1993). These studies have generally shown that subsamples of
respondents given time to think have lower WTP than equivalent
subsamples who respond to the CV question during one interview. In
particular, time to think reduced the percentage of respondents agreeing
to pay high offered prices. Giving respondents overnight to think about
their response may allow them to more carefully consider their budget
constraints or consult with family members or friends. In the case of
in-person interviews, it may also allow them to reach their decision
outside the (perhaps subtle) influence of the interviewer.
No studies have given SC respondents time to think. Based on the
evidence from CV studies, we expect a priori that time to think will
reduce average WTP. In addition, we predict that giving respondents
overnight will decrease the number of preference errors. Because SC
respondents complete several tasks, each of which forces them to make
difficult trade-offs, fatigue can be a problem. We expect that that
giving respondents overnight to complete the choice tasks will allow
them to evaluate the tasks at their own pace, giving them more time to
carefully consider the attributes of each alternative presented to them.
III. RESEARCH DESIGN
SC Design
Our SC survey asked respondents to choose between the status quo (buy no vaccine) and two vaccine alternatives with the following
attributes: the type of vaccine (cholera or typhoid); the effectiveness
of the vaccine in protecting against the disease (50%, 70%, or 99%); the
number of years the vaccine would be effective (3 years or 20 years);
and the price of the vaccine (US$0.33, 3.22, or 12.9) (see Sur et al.
2006 for details). Although the CV survey asked respondents about the
willingness to purchase vaccines for themselves as well as other
household members, the SC survey asked only about vaccines for
respondents themselves.
Each respondent completed a total of six choice tasks in the SC
survey. Four of these tasks were drawn from a main effects, orthogonal
task design that maximized statistical efficiency while attempting to
minimize cognitive burden for respondents. The design also ensures that
each attribute level appears an equal number of times and is
uncorrelated with all other attribute levels. Because testing for
preference errors (in particular, transitivity errors) requires
repeating some alternatives, we added two additional choice tasks to the
four from the orthogonal design.
Each respondent was randomly assigned to complete one of three
"blocks" of six tasks. For each of these 18 tasks, we
therefore have approximately 66 responses in each subsample (200
respondents into three blocks). We did not immediately allow respondents
to choose both vaccine alternatives on a task. Instead, after
respondents had answered all six choice tasks the interviewer revisited
each task for which respondents said they would purchase a vaccine and
asked if the respondent would want to purchase both vaccines. (2)
Time to Think Treatment
We split our sample of 400 SC respondents into two equal
subsamples. Both subsamples answered the exact same questions, but the
structure of the interview differed. The structure of the interview for
the no time to think (NTTT) subsample was as follows. First, respondents
answered a series of questions on knowledge of and attitudes toward
cholera and typhoid fever. Second, interviewers introduced the
hypothetical vaccine scenario and the concept of vaccine effectiveness
(following Suraratdecha et al. 2005; see also Canh et al. 2006 for more
details on the nearly identical structure of the CV survey). Third,
interviewers explained the choice tasks and had respondents complete one
task as practice. Finally, respondents completed the six choice tasks,
each of which was printed on a laminated card. They marked their answers
onto the cards with an erasable marker, and the order in which the cards
were shown to them was randomized. Finally, respondents answered a
series of debriefing questions on the tasks, and provided socioeconomic
and demographic information.
The time to think (TTT) subsample completed the first three
sections of the interview in the same way, including the explanation of
the WTP scenario and the practice choice task, but interviewers then
stopped. They scheduled a follow-up interview with respondents for the
next day, and asked respondents to complete the six choice tasks
overnight. Interviewers returned on the next day (one respondent took
two days) to record the respondents' answers and complete the
remainder of the survey. To avoid confounding, we isolated the two
subsamples in time: we completely finished the NTTT surveys before
moving on to the TTT surveys. Thus any potential confounding was limited
to giving the TTT respondents more time than one day (if, for example,
they heard of the survey from a resident of a nearby commune in the NTTT
subsample).
In addition to the split-sample comparison, we are also able to
observe whether an individual respondent changes his answers when given
time to think: we gave the NTTT subsample the opportunity to revise
their answers overnight. At the end of the first interview, interviewers
left the cards with the six choice tasks with respondents and scheduled
a follow-up interview for the next day "to ask a few additional
questions about the choices [the respondent] made." Interviewers
returned the next day and, if respondents chose to revise any answers
overnight, they also recorded the revised answers.
IV. MODELING FRAMEWORK FOR SC DATA
We analyze the data using a random-parameters, or mixed logit,
model. Unlike multinomial (conditional) logit models, mixed-logit models
eliminate the independence of irrelevant alternatives assumption,
accommodate correlations, and account for unobserved taste heterogeneity among respondents by introducing respondent-specific stochastic elements
for each coefficient (Revelt and Train 1998; for more detailed
treatments of the theoretical link between SC responses and random
utility theory, interested readers should see Alpizar et al. 2001;
Alvarez-Farizo and Hanley 2002; Hensher et al. 2005; Ruby et al. 1998).
Mixed-logit models estimate a distribution of coefficients for each
attribute from the full sample. Augmenting this with hierarchical Bayes
estimation uses mixed-logit estimates as priors for obtaining
individual-specific posterior parameter estimates (Train and Sonnier
2003).
Because MLHB models use simulated maximum likelihood to estimate a
distribution for each attribute, the researcher must make a priori
distributional assumptions. Until recently, mixed-logit algorithms could
only support normal distributions. There are many instances where
researchers may have strong theoretical grounds to reject a normal
distribution. In our application, for example, economic theory predicts
that the coefficient on price should never be positive--increasing price
should not provide positive utility and increase the probability of
choosing that alternative. Train and Sonnier (2003) adapted their
algorithm to incorporate distributions that support such a priori
restrictions and that are transformations of the normal (lognormal,
truncated normal, triangular, and log-odds normal distributions). They
found an 11% improvement in log likelihoods by using MLHB with
transformed normal distributions. On the other hand, Sillano and Ortuzar
(2005) have argued that the need for such models is overblown, as a very
small portion of actual individual-level predictions typically lie in
the "wrong" quadrant. They argue that the advantages of using
distributions such as the lognormal are outweighed by other well-known
problems (e.g., the lognormal produces implausible predictions at the
tails).
Another important issue in interpreting our results is the
confounding of utility scale ([sigma]), which is inversely related to
variance of responses, with taste coefficients ([beta]). All models that
analyze CV or SC data implicitly model not simply taste coefficients but
the product of scale and taste coefficients ([sigma][beta]). Researchers
typically ignore the scale parameter by assuming that it is equal to one
(for an in-depth discussion of this issue, see Louviere et al. 2002).
However, when there is reason to believe that the variance of responses
differs between subsamples of respondents (for example, in combining
revealed and stated preference data, or when the elicitation format
differed among respondents), this assumption is unsupported, and one
must compare taste coefficients across subsamples with care. Identifying
ways to separate scale from taste parameters is a challenge and
currently the subject of much debate in the field. Rather than enter
that debate, we address the issue by using Swait and Louviere's
(1993) two-stage test for the scale heterogeneity, which we will discuss
in more detail in the results section of this paper. It is worth noting
from the outset, though, that because WTP estimates are essentially
ratios they are unaffected by scale: dividing by the price parameter
([sigma] x [[beta].sub.price]) cancels out the scale parameter(s) in the
numerator.
We code the data for analysis as follows (see Table 1). Price is
coded as a continuous variable (with three levels) and the
alternate-specific constant (ASC) as a dummy that is equal to one if
respondents purchased neither vaccine and zero otherwise. Vaccine type,
effectiveness, and duration are all effects-coded. Unlike dummy-coded
variables, effects-coded variables allow the researcher to recover the
parameter estimates for every level shown to respondents, including the
excluded category. Zero is normalized as the mean effect of all vaccines
shown to a respondent, rather than the combination of omitted
categories.
Following Small and Rosen (1981) and Hanemann (1984), we calculate
the WTP (Hicksian compensating variation) as:
(1) [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]
where [[mu].sup.1] is the marginal utility of income (the negative
of the price coefficient), [V.sub.i0] is the indirect utility function for respondent i evaluated at baseline quality levels, [V.sub.i1] is the
indirect utility after the quality change, and C is the policy relevant
choice set. Because we assume that citizens will make purchase decisions
separately for the two vaccines (i.e., if the vaccines against cholera
and typhoid become available in Hue at different times), the relevant
choice set has two options: purchasing the cholera (or typhoid) vaccine
offered or opting out. Note that the same welfare calculation could be
applied to another possible policy context--providing free vaccines
against cholera or typhoid (but again, not both simultaneously).
Individual-level covariates (age, gender, education, etc.) were not
included directly in the estimating models. Because these
characteristics are the same for each choice task that an individual
completes, the only way to introduce them is to interact them with one
of the attribute variables or with the ASC. This is not only
computationally difficult but requires the researcher to make an
assumption about how each attitudinal or socioeconomic variable enters
the utility function. By interacting income with the ASC variable, for
example, one makes the assumption that income only affects the
probability of opting out, when it might also affect the price
elasticity or the preference for higher vaccine effectiveness. Our
approach for analyzing the effects of socioeconomic variables is to take
advantage of the fact that the MLHB procedure provides the researcher
with a unique set of coefficients for each respondent. After linking
those coefficients with each respondent's attitudinal and
socioeconomic data, we can compute average WTP for any number of
different subgroups (e.g., by age, income, education, etc.).
V. STUDY SITE
Hue is located in central Vietnam about 20 km from the coast, with
a population of approximately 282,000. The city is subdivided into 20
urban and 5 semi-urban communes. We completed 400 SC interviews in Hue
during July and August 2003. We drew from a sample frame of six communes
in the city, four of which were urban and two semi-urban. We restricted
our sample to those households with children under age 18 and where the
household head was 65 years or younger. We first randomly drew
households from this pool, and then randomly chose whether to interview
the household head or his/her spouse within a selected household.
VI. RESULTS
Respondents took advantage of the opportunity to think overnight
about their choices: TTT respondents reported spending an average of 37
minutes completing the choice cards overnight (only two respondents
reported spending no time on the cards). About half of these respondents
(47%) discussed the decision with their spouse, but only 4% of
respondents talked with people outside the household. Only four
respondents used information besides the materials that the interviewer
gave them.
Respondents
The median respondent in our sample is a 45-year-old married woman
with three children. She has a secondary school education (Table 2). Her
household earns US$97 each month and owns their home, which has
electricity, a telephone, and a television. Her household uses a flush
toilet and drinks water from a private or shared water connection with
24-hour service. She understands the concept of vaccination and has been
vaccinated before (but not necessarily for cholera or typhoid). She has
heard of cholera and typhoid fever, and understands the sources of these
diseases fairly well. On the other hand, the median respondent has not
had a case of cholera or typhoid fever in her family and does not know
anyone who has had cholera or typhoid.
Does Giving Respondents Time to Think Reduce Preference Errors?
Twenty-two of 200 respondents who were not given time to think made
some type of preference error, compared with 14 of 200 respondents in
the TTT subsample (Table 3). Only one respondent (in the NTTT subsample)
made a transitivity error, and he corrected the mistake when given the
chance to revise overnight. This is much lower than the frequency of
errors that Johnson et al. (2000) find, though this may be due to
differences in the complexity of the choice tasks.
The low number of errors may also be because about half of
respondents answered in ways that did not allow us to test for
preference errors (Table 4). For example, if a respondent chose to
purchase neither vaccine on all of the tasks, or if respondents always
chose the cholera vaccine, it is not possible to test for transitivity,
stability or monotonicity (see Appendix B). Respondents who always make
their choice based on only one attribute of a vaccine (i.e., price) are
said to exhibit apparent lexicographic preferences. Apparent
lexicographic preferences may arise either from true lexicographic
preferences where there are no possible levels of other attributes that
would induce trading away from a favored attribute (e.g., "I only
care about effectiveness; duration is unimportant"), insufficient
range in the levels of other attributes to induce trading away from a
heavily favored attribute (e.g., "I care about duration, but even
the longest duration was just too short to accept a lower
effectiveness"), or a simplifying heuristic to avoid the effort of
evaluating the choice task.
If we assume these respondents were not using a simplifying
heuristic but rather had true lexicographic preferences, the percent of
respondents with some type of preference error in the NTTT group is
significantly higher than the TTT group at only the 10% level (first row
of Table 5). If we assume these respondents were using a heuristic and
drop them from the sample, the difference becomes significant at the 5%
level (second row of Table 5). Furthermore, once respondents in the NTTT
subsample have been given a chance to revise their answers, the
difference disappears, regardless of whether we include apparently
lexicographic responses (last two rows of Table 5).
Using a multivariate probit model that controls for age, education,
and region (urban or semi-urban), we find that giving time to think
reduces the probability of making an error by 31% ceteris paribus, but
the effect is only weakly significant (Table 6). Compared to respondents
with no education, respondents with secondary school or university
education have a lower probability of making an error than respondents
with no education (the excluded dummy category). In a second model that
interacts time to think with education, giving time to think to someone
with primary school education reduces their chance of making an error by
6% ([[beta].sub.time-to-think] + [[beta].sub.TTT x Primary School]).
Respondents with secondary school education would make 35% fewer errors
if given time to think.
Does Time to Think Decrease Respondents' WTP for Vaccines?
Raw Results. Before discussing the results from the MLHB estimation
models, we can draw some conclusions using only the raw response data.
Recall that both subsamples completed exactly the same choice tasks, so
that for any given choice task we have approximately 66 responses in
each subsample. If giving respondents time to think makes them less
likely to purchase a vaccine, we expect that a higher percentage of
respondents who were given time to think would choose neither vaccine on
any given task. In 16 of the 18 tasks, the percentage of respondents
choosing neither vaccine was higher in the subsample given time to think
(Figure 2). Similarly, in 17 of 18 tasks, the percent of respondents
choosing both vaccines was lower in the subsample given time to think
(Figure 3).
MLHB Models. Table 7 compares the results of two MLHB models that
differ only in how the distribution of the price coefficient is modeled.
Note that all responses were included in these MLHB models: we did not
exclude respondents who made a preference error. We tested for scale
heterogeneity using the approach of Swait and Louviere (1993). We
rejected the first hypothesis (that [[sigma].sub.NTT][[beta].sub.NTT] =
[[sigma].sub.TTT][[beta].sub.TTT]) with a high degree of confidence
(referring the test statistic of 201 to a chi-squared distribution with
7 degrees of freedom gives a p-value very close to zero). We conclude
that giving time to think certainly affects responses, but it may affect
responses in one of three ways: by changing the variance of responses,
by changing the absolute value of taste coefficients, or by changing
both. The difficulty lies in identifying which of the three is the
truth. As there is currently no consensus in the field on the
appropriateness of modeling scale in mixed logits, differentiating among
these three explanations is beyond the scope of this article.
Comparisons of taste coefficients across subsamples must therefore be
made with care.
Six results are important and consistent across models.
As expected, the coefficient on vaccine price is both negative and
highly significant in all subsamples. In addition, the absolute value of
the mean price coefficient is higher in the subsample given time to
think; respondents who had overnight to think about their answers were
more sensitive to price. Again, though, this comparison is confounded by
possible differences in scale/variance. It seems likely that one of the
more important ways in which time to think affects responses is that it
allows respondents to more carefully think about other things they might
spend their income on besides this vaccine. We would expect that this
would increase price elasticity and not simply reduce the variance of
the price coefficient, though this is certainly an important and
interesting hypothesis to test in further research.
The mean coefficient on the cholera vaccine attribute is positive
and statistically significant. Recall that effect-coded variables
capture the marginal effect away from the mean effect of all vaccines
shown to respondents (normalized to zero), so that a positive
coefficient indicates a preference of cholera vaccines over typhoid
vaccines (one can calculate the coefficient on typhoid vaccines as the
negative of the coefficient on cholera vaccines, or -0.1715 in model 1).
In both subsamples the coefficient for 99% effectiveness is
significant and positive. The 70% effectiveness variable, however, is
not significantly (or only weakly significantly) different from the mean
level. The absolute value of the coefficient is higher in the TTT
subsample: giving time to think seemed to make respondents more
sensitive to the highest level of effectiveness, though this comparison
is confounded by possible differences in scale. Here it seems plausible
that giving time to think about this relatively unfamiliar concept might
reduce "'noise" in the responses, increasing the scale
parameter.
The 20-year duration coefficient is also not significantly
different from the mean level, indicating that respondents did not
distinguish between a vaccine with a duration of 3 years and a vaccine
with a duration of 20 years. This would indicate that effectiveness,
vaccine type, and price are more important attributes than duration for
respondents in our sample.
[FIGURE 2 OMITTED]
[FIGURE 3 OMITTED]
The coefficient on the ASC is significant and negative in the NTTT
subsample, but not statistically different from zero in the TTT
subsample. Respondents with more time to think are more likely to choose
neither vaccine the statistical equivalent of the results presented in
Figures 2 and 3.
Increasing price should not increase the probability of choosing an
alternative, but when the estimating procedure tries to fit the response
data to a normal distribution some of the probability mass is forced
above zero. Using only the estimated mean and standard deviations from
model 1, we would predict that about 25% of the normal distribution for
NTTT respondents, and 13% of the distribution for TTT respondents, would
be positive. Because the MLHB procedure delivers individual-level
coefficient estimates, we can also calculate the percent of respondents
whose predicted (individual-level) price coefficient is positive. Unlike
Sillano and Ortuzar (2005), we find a significant fraction of
respondents with positive coefficients (28% of the 200 NTTT respondents,
and 15%, of the 200 TTT respondents).
Train and Sonnier's MLHB algorithm avoids this problem by
modeling distributions other than the normal distribution. We run two
additional models, one that treats price as log normally distributed
(model 2) and one that models price as a normal distribution truncated
at zero (model 3). Changing the distribution on price does not have a
large effect on the coefficient estimates for effectiveness, duration,
and ASC (Table 7). In the model where price is modeled as log normal
(model 2), however, the average price elasticities are smaller in
magnitude than in the models where price is modeled as normally
distributed. In both models, however, the average price elasticity
increases with time to think: it increases 62% in model 1, 74% in model
2, and 47% in model 3 (though again this difference may be partially or
completely due to changes in scale/ variance).
WTP Estimates. WTP for all vaccine bundles is lower in the TTT
subsample than in the NTTT subsample (first two columns of Table 8). On
average, median WTP among respondents with time to think is half of WTP
among those who completed the survey in one interview. This result is
statistically robust (the p-value for the t-test of differences in
sample means was much less than 0.01 for all vaccines) and is not
confounded by potential scale differences. Respondents in our sample,
both with and without time to think, have very low or even negative WTP
for vaccines with effectiveness less than 70%. This is a somewhat
puzzling result and will be discussed in more detail shortly.
We use the fact that MLHB models provide a unique set of
coefficient estimates for each respondent to show how WTP changes with
gender, education, and income (proxied by quintiles of monthly
electricity bill). On average, men have higher WTP than women, with the
exception of 50% typhoid vaccines (third and fourth columns of Table 8).
WTP is generally higher for more educated and wealthier respondents,
though again this effect is clearer for vaccines with greater than 50%
effectiveness.
VII. DISCUSSION
Respondents who were given time to think made fewer preference
errors, were more likely to purchase neither vaccine, had much higher
price elasticities, and had much lower average WTP for vaccines. These
results support the findings from prior stated preference work on time
to think and strongly suggest that asking respondents to complete SC
surveys in one interview (standard practice for stated preference
surveys) probably overstates WTP. We also found that respondents in Hue
preferred cholera vaccines to typhoid vaccines and were more sensitive
to a vaccine's effectiveness than its duration.
There are numerous reasons to be cautious, however, about applying
these results to policy. First and foremost, our WTP estimates for 50%
effective vaccines were very low or even negative. Although negative WTP
values could have plausible economic interpretations (respondents would
need to be compensated for taking the free vaccine, perhaps because of a
[misplaced] fear of infection, a dislike of medical procedures, or
compensation for travel and time costs), it seems more likely that WTP
is simply not significantly different from zero for these vaccines.
Though not the primary focus of this article, it may also be useful
to compare our SC results with those obtained from the companion CV
surveys (Table 9). Note that none of the CV respondents were given time
to think. In general, the welfare estimates are similar for vaccines
with 70% effectiveness, but quite different for vaccines with 50% or 99%
effectiveness. This may be in part because respondents in the CV survey
were not very responsive to the level of effectiveness or duration (WTP
does not differ much among types of vaccine). This would seem to point
out a strength of SC surveys, as one would expect respondents to value a
99% effective vaccine more highly than a 50% vaccine. On the other hand,
the results from our SC survey imply that most respondents would be
indifferent between taking and not taking a free 50% effective vaccine.
However, when we asked a separate sample of respondents an equivalent CV
question (i.e., "would you buy a 50% effective, three-year cholera
vaccine if it cost X?"), 77% reported that they would purchase the
same vaccine at a price of US$0.33.
There seems to be no consensus in the literature on predicting how
CV and SC results will differ. Like Foster and Mourato (2003), but
unlike Adamowicz et al. (1998) and Boxall et al. (1996), we find that
WTP measures are different using CV and SC data. Unlike all three other
studies, however, we do not find that one method produces consistently
higher or lower estimates. Rather, the difference between the CV and SC
welfare estimates varies with attribute levels--WTP from SC is higher
than CV for vaccines with high effectiveness but lower for the
"worst" vaccines. It is not possible to say which of these
elicitation formats is more believable or robust in our context--both
have strengths and weaknesses. It is also worth noting the real-world
policy context. In our SC experiment, respondents had a choice between
vaccines with different levels of effectiveness and, given such a
choice, they told us that they strongly preferred more effective
vaccines. Though this is certainly useful information for policy makers,
in reality this choice will not be available to them; respondents will
have to choose between a less than perfect vaccine and no vaccine at all
(similar to the questions posed in the CV surveys).
There has also been interest recently in understanding how the
context and complexity of choice experiments affects results (Swait and
Adamowicz 2001; Swait et al. 2002). In our study the fact that a TTT
respondent could see all the choice tasks before answering any of them
was both a strength and a weakness of the research design. Because
choice tasks are cognitively difficult, one might expect that giving
people the chance to study several tasks before answering any would
familiarize them better with making trade-offs between attributes (note
that the NTTT subsample also completed two practice tasks before
beginning the actual choice tasks).
On the other hand, we had little control over the context in which
the TTT respondents answered, so that some respondents may not have
taken each choice task as an isolated question. For example, a
respondent might have looked through all 12 vaccine alternatives on all
6 tasks and chose the alternative that had the best combination of
effectiveness, duration, and price for them. He then might have chosen
that vaccine on the task in which it was offered, and chose
"neither" on all of the other five tasks. Respondents may also
have grouped tasks in any number of different ways that made sense to
them (i.e., group all the 99% cholera vaccines together, group all the
typhoid vaccines which cost less than X, etc.). In fact, a simple task
to help identify such qualitative patterns would be to ask respondents
to sort the choice tasks into whichever grouping or order makes sense to
them. This could be done either before or after actually answering the
tasks.
Substitutes matter, of course. Even without time to think,
respondents may be locking in on high-quality vaccines and opting out
more frequently once they've seen a vaccine with the
"best" attributes. If this were true, it would bias upward the
coefficients on the effect-coded variables for high attribute levels.
For example, suppose many respondents in our study "locked in"
on vaccines with 99% effectiveness. Once they saw a task with a 99%
effective vaccine, they might have developed a bias against vaccines
with 50% or 70% effectiveness and chose neither on any task that did not
contain a vaccine alternative that was 99% effective.
APPENDIX A: WTP SCENARIO
Initial Question
"I will now show you six new cards similar to the one I have
just shown you. For each card, I would like you to choose which of the
vaccine alternatives you would prefer if these alternatives were
available to you. The first two vaccine alternatives (A or B) are to buy
either a typhoid vaccine or a cholera vaccine with the characteristics
(effectiveness, duration, and price) that are written on the card. If
neither vaccine is attractive to you, you may choose not to purchase any
vaccine at all (Alternative C). For each card, you will be asked about
your choice for yourself, not for other members of your household."
See Figure 1 for an example of the choice card.
Follow-up for Respondents Who Purchased at Least One Vaccine
"Now let's suppose that you had the opportunity to buy
both vaccines if you wanted to. If you could buy both vaccine
alternatives and the total price for both vaccines is --. would you be
able to afford and want to buy both vaccines for yourself?"
APPENDIX B: TESTING FOR PREFERENCE ERRORS
Stability is often the easiest characteristic of respondents'
preferences to test. Suppose one choice task asks you to choose between
three options: you can purchase either of two vaccine alternatives
(vaccines X and Y) or you can purchase neither vaccine and choose
"opt out." If you choose vaccine X, you are revealing that you
prefer X to Y, and prefer X to no vaccine. Now imagine a new choice task
that asks you to choose between vaccine X, vaccine Z, or neither
vaccine. If you choose neither vaccine. you are revealing that you
prefer no vaccine to vaccine X, which is inconsistent with your first
choice.
One tests monotonicity with either "'dominant-pair"
comparisons or by comparing answers across choice tasks. A choice task
with a dominant pair presents one alternative that is unambiguously
better in all attributes than the other alternative (i.e., higher
effectiveness, longer duration, lower price). Though such a pair of
alternatives can tell us if respondents" preferences are monotonic,
they decrease the statistical efficiency of the experimental design
because they do not reveal important information about the willingness
to trade off attributes.
A second approach to observing monotonicity is to observe responses
across choice tasks when at least one alternative is repeated. For
example, suppose two vaccine alternatives X and Y are equivalent in all
attributes, except that vaccine X has a lower price. Suppose you are
asked to compare X with some other vaccine Z, and also to compare Y with
Z. If you prefer vaccine Z to vaccine X, then you should not prefer Y to
Z, because Y is equivalent to X but has a higher price. Finally, testing
for transitivity requires repeating two bundles, such that respondents
compare X with Y on one choice task, Y with Z in another choice task,
and X with Z on a third task.
The detailed algorithms for calculating preference errors are
available from the authors.
ABBREVIATIONS
ASC: Alternate-Specific Constant
CV: Contingent Valuation
MLHB: Mixed Logit/Hierarchical Bayes
NTTT: No Time to Think
SC: Stated Choice
TTT: Time to Think
WTP: Willingness to Pay
doi: 10.1093/ei/cb1005
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(1.) Note that our research design also allows us to compare the
results between the CV and SC surveys and examine the policy
implications of any differences. This is not, however, the focus of this
article. The results of the CV surveys are reported in Canh et al.
(2006) and Kim et al. (2005), and we will briefly mention differences
between the two methods in the conclusions.
(2.) We did this to maximize the opportunities to observe
respondents making trade-offs among vaccine attributes. If a respondent
always chooses both vaccines, it is difficult to determine whether, for
example, the vaccine's effectiveness is more important than its
duration to him.
JOSEPH COOK, DALE WHITTINGTON, DO GIA CANH, F. REED JOHNSON, and
ANDREW NYAMETE *
* We thank Edward Norton, Donald Lauria, Vic Adamowicz, Richard
Thorsten, Semra Ozdemir, and an anonymous reviewer for helpful comments.
This research is part of the Diseases of the Most Impoverished Program
(DOMI), administered by the International Vaccine Institute with support
from the Bill and Melinda Gates Foundation. The DOMI program works to
accelerate the development and introduction of new generation vaccines
against cholera, typhoid fever, and shigellosis. The program involves a
number of parallel activities including epidemiological studies, social
science studies, and vaccine technology transfer. The results will
support public decision-making regarding immunization programs for
cholera and typhoid fever.
Cook: Doctoral Student, Department of Environmental Sciences and
Engineering, School of Public Health, Rosenau Hall. Campus Box 7431,
University of North Carolina at Chapel Hill, Chapel Hill, NC 27599.
Phone 1-919-360-6476, Fax 1-919-966-7911,
[email protected]
Whittington: Professor, Department of Environmental Sciences and
Engineering, School of Public Health, University of North Carolina at
Chapel Hill. NC, 27599. Phone 1-919-966-7645, Fax 1-919-966-7911, E-mail
[email protected]
Canh: Chief, Diarrheal Diseases Epidemiology and Field Research
Section, National Institute of Hygiene and Epidemiology (NIHE), Hanoi,
Vietnam. E-mail
[email protected]
Johnson: Senior Fellow, Research Triangle Institute, Research
Triangle Park. NC, 27709. Phone 1-919-5415958, Fax 1-919-541-7222,
E-mail
[email protected]
Nyamete: Coordinator, DOMI Social Science Task Force, International
Vaccine Institute, Seoul, South Korea. Phone 301-856-4084, E-mail
[email protected]
TABLE 1
Data Coding for MLHB Models
Variable Description Coding
Cholera vaccine Vaccine Type -1 if typhoid, 1 if
cholera, 0 if neither
70% Effective Effectiveness -1 if 50%, 1 if 70%, 0
if 99%, 0 if neither
99% Effective Effectiveness -1 if 50%, 0 if 70%, 1
if 99%, 0 if neither
20yrDuration Duration -1 if 3 yrs, 1 if 20
yrs, 0 if neither
Price Price Continuous (US$0.33,
3.22, 12.90)
ASC Alternate-specific constant Dummy; 1--neither
vaccine (status quo),
0 = typhoid vaccine or
cholera vaccine
TABLE 2
Subsample Socioeconomic Characteristics
NTTT TTT
N 200 200
Age
Mean age (years) 45 45
Less than 35 years old 9% 14%
Age 35-49 17% 16%
Age 40-44 24% 20%
Age 45-49 18% 20%
Age 50 or older 33% 32%
Education
% Never Attended School 4% 8%
% Primary School (1-5 yrs) 19% 23%
% Secondary School (6-12 yrs) 52% 59%
% University and Postgrad 26% 11%
Urban (= 1 if respondent in 80% 80%
urban commune; semi-urban is
excluded category)
TABLE 3
The Number of Preference Errors in each
TTT Subsample
NTTT
Type of Error Original Revised TTT
Stability 15 14 10
Monotonicity 12 8 9
Transitivity 1 0 0
Any error 22 18 14
N 200 200 200
Note: Table includes full sample; respondents who
failed effectiveness test twice included.
TABLE 4
The Number of Response Patterns in Both
Subsamples that Show Apparently
Lexicographic Preferences
NTTT
Response Patterns Original Revised TTT
Always chose cholera vaccine 23 20 20
Always chose typhoid vaccine 44 37 25
Always chose neither vaccine 37 34 56
Total 104 91 101
TABLE 5
Percent of Respondents with Any Type of Preference Error
NTTT% TTT%
N Any Error Any Error
Original NTTT answers
All Responses 400 10.5% 6.5%
Excluding apparent 195 21.8% 13.1%
lexicographic responses
Revised NTTT answers
All Responses 400 9.0% 6.5%
Excluding apparent 208 16.5% 13.1%
lexicographic responses
Probability that
Difference in Means > 0 (a)
Original NTTT answers
All Responses 0.08
Excluding apparent 0.05
lexicographic responses
Revised NTTT answers
All Responses 0.23
Excluding apparent 0.25
lexicographic responses
TABLE 6
Probit Model Specifications Predicting the
Probability of Any Type of Preference Error
Model 1 Model 2
TTT (a) -0.31 * 1.66 **
(0.18) (0.69)
Age (b)
Age 35-39 -0.10 -0.16
(0.38) (0.39)
Age 40-44 -0.18 -0.16
(0.37) (0.38)
Age 45-49 0.24 0.23
(0.35) (0.35)
Age 50 or older 0.23 0.23
(0.33) (0.33)
Education (b)
Primary School (1-5 yrs) -0.47 -1.27 **
(0.36) (0.54)
Secondary School (6-12 yrs) -0.70 ** -1.35 ***
(0.35) (0.52)
University and Postgraduate -0.86 ** -1.65 ***
(0.41) (0.56)
TTT x Primary School 1.60 **
(0.78)
TTT x Secondary School 1.31
(0.74)
TTT x University and 1.89 **
Postgraduate (0.84)
Urban 0.23
(0.23)
Constant -0.85 * 0.00
(0.45) (0.57)
Likelihood ratio test (p > [chi square]) 13.51 18.37
N 400 400
Notes. SEs are in parentheses. * indicates significance
at the 10% level, ** at the 5'X, level, and *** at the 1% level.
(a) 0 = Respondents with no time to think, 1 = respondents
with time to think.
(b) Excluded categories: Age < 35 and "Never Attended
School."
TABLE 7
Results of MLHB Multivariate Models
MLHB Model 1
All Coefficients
Normally Distributed
NTTT TTT
Price -0.1622 *** -0.2622 ***
(0.014) (0.079)
Cholera vaccine 0.1715 *** 0.1423 **
(0.045) (0.054)
70% Effective -0.144 * 0.0934
(0.074) (0.075)
99% Effective 1.014 *** 1.0713 ***
(0.077) (0.066)
20-year duration -0.0291 0.1009
(0.061) (0.058)
ASC -0.4837 *** -0.0421
(0.082) (0.079)
N 200 200
Likelihood ratio [chi square] 1110 1092
McFadden (1974) pseudo-[R.sup.2] 0.42 0.43
MLHB Model 2
All Normally Distributed
Except Price (log normal)
NTTT TTT
Price -0.0849 *** -0.1475 ***
(0.009) (0.011)
Cholera vaccine 0.1520 *** 0.1681 ***
(0.042) (0.049)
70% Effective -0.069 0.0929
(0.063) (0.074)
99% Effective 0.8432 *** 1.007 ***
(0.064) (0.074)
20-year duration 0.0477 0.0627
(0.046) (0.051)
ASC -0.3829 *** 0.0656
(0.073) (0.064)
N 200 200
Likelihood ratio [chi square] 573 650
McFadden (1974) pseudo-[R.sup.2] 0.22 0.25
MLHB Model 3
All Normal Except Price
(normal, truncated at zero)
NTTT TTT
Price -0.1968 *** -0.2888 ***
(0.013) (0.016)
Cholera vaccine 0.1909 *** 0.1654 **
(0.047) (0.051)
70% Effective -0.1508 * 0.0278
(0.067) (0.064)
99% Effective 1.035 *** 1.118 ***
(0.080) (0.076)
20-year duration 0.0406 0.1222 *
(0.056) (0.056)
ASC -0.626 *** -0.152 *
(0.072) (0.075)
N 200 200
Likelihood ratio [chi square] 989 1013
McFadden (1974) pseudo-[R.sup.2] 0.38 0.39
Notes: Each sample consisted of 200 respondents who completed a total
of six choice tasks, for a total of 1,200 task responses. * indicated
significance at the 10% level, ** at the 5% level, and *** at the
1% level.
TABLE 8
Estimates of Median Expected WTP for Vaccines (US$), by TTT and
Socioeconomic Characteristics
By TTT Gender (a)
Vaccine NTTT TTT Male Female
Cholera, 50% 3 yr 1.92 -0.09 -0.08 -0.09
Cholera 50% 20 yr 2.27 0.40 0.42 0.40
Cholera 70% 3 yr 5.92 2.65 3.10 2.52
Cholera 70% 20 yr 6.62 3.50 4.38 3.18
Cholera 70% 3 yr 13.3 5.89 6.87 5.41
Cholera 99% 20 yr 14.4 7.02 8.18 5.92
Typhoid 50% 3 yr 0.39 -0.46 -0.55 -0.45
Typhoid 50% 20 yr 0.69 -0.21 -0.23 -0.20
Typhoid 70% 3 yr 4.36 1.74 1.97 1.67
Typhoid 70% 20 yr 4.54 2.63 3.21 2.07
Typhoid 99% 3 yr 11.25 4.65 5.56 4.44
Typhoid 99% 20 yr 11.82 5.69 7.50 5.30
N 200 200 75 125
Education (a,b)
No Primary Second.
Vaccine Educ School School Postgrad
Cholera, 50% 3 yr -0.08 -0.09 -0.08 -0.09
Cholera 50% 20 yr 0.39 0.42 0.40 0.47
Cholera 70% 3 yr 1.75 2.40 2.92 3.03
Cholera 70% 20 yr 2.68 2.96 3.89 4.09
Cholera 70% 3 yr 4.21 5.23 6.66 7.05
Cholera 99% 20 yr 5.29 5.67 7.60 8.77
Typhoid 50% 3 yr -0.35 -0.43 -0.50 -0.58
Typhoid 50% 20 yr -0.14 -0.17 -0.22 -0.17
Typhoid 70% 3 yr 1.02 1.68 1.78 1.91
Typhoid 70% 20 yr 1.71 2.00 2.93 3.13
Typhoid 99% 3 yr 3.33 4.37 5.31 5.64
Typhoid 99% 20 yr 4.23 4.75 6.46 7.28
N 15 45 118 22
Quintile of Monthly
Household Electricity Bill (a)
Lowest Highest
Vaccine Quintile Quintile
Cholera, 50% 3 yr -0.08 -0.11
Cholera 50% 20 yr 0.22 0.55
Cholera 70% 3 yr 2.31 5.34
Cholera 70% 20 yr 2.82 6.36
Cholera 70% 3 yr 4.75 11.04
Cholera 99% 20 yr 5.45 12.16
Typhoid 50% 3 yr -0.43 -0.70
Typhoid 50% 20 yr -0.21 -0.20
Typhoid 70% 3 yr 1.38 4.22
Typhoid 70% 20 yr 1.97 5.43
Typhoid 99% 3 yr 3.71 9.81
Typhoid 99% 20 yr 4.68 11.96
N 43 20
Notes: Based on results from MLHB model 3 (price as truncated normal
distribution).
(a) Drawn only from the TTT subsample.
(b) Primary school (1-5 years), secondary school (6-12 years),
postgraduate (university or postgraduate).
TABLE 9
Comparison of Median WTP (US$) using CV and SC Data
CV (a) SC MLHB
Model 3 (d)
Turnbull Lower
Bound Mean
Vaccine [Median Range] (b) Probit (c) NTTT TTT
Cholera, 50%, 3 yr 4.50 [1.67-3.33] 4.95-4.98 1.92 -0.09
Cholera 50% 20 yr -- -- 2.27 0.40
Cholera 70% 3 yr 4.43 [0.33-1.67] 4.96-4.98 5.92 2.65
Cholera 70% 20 yr 2.97 [0.33-1.67] 5.14-5.16 6.62 3.50
Cholera 99% 3 yr -- -- 13.3 5.89
Cholera 99% 20 yr 4.96 [0.33-3.33] 6.44-6.45 14.4 7.02
Typhoid 50% 3 yr -- -- 0.39 -0.46
Typhoid 50% 20 yr -- -- 0.69 -0.21
Typhoid 70% 3 yr 3.47 [1.67-3.33] 3.72-4.74 4.36 1.74
Typhoid 70% 20 yr 3.01 [1.67 3.33] 3.35-4.77 4.54 2.63
Typhoid 99% 3 yr 2.52 [1.67-3.33] 2.27-4.77 11.25 4.65
Typhoid 99% 20 yr 4.20 [1.67-3.33] 4.74-4.77 11.82 5.69
(a) All CV respondents completed the survey in one interview (i.e.,
NTTT). It was not possible to show all combinations of the vaccine
types in the CV survey.
(b) From Canh et al. (2006). The median range of WTP from the Turnbull
estimator is the range of initial bids to which 50% of respondents said
yes and 50% said no."
(c) From Kim et al. (2005). Median WTP; range reflects different probit
modeling approaches.
(d) Median of predicted WTP for each of the 200 respondents in each
subsample.