Differential Attention to Attributes in Utility-theoretic Choice Models

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Date

2008-10

Authors

Cameron, Trudy Ann
DeShazo, J. R.

Journal Title

Journal ISSN

Volume Title

Publisher

University of Oregon, Dept of Economics

Abstract

We show in a theoretical model that benefits of allocating additional attention to evaluating the marginal attribute with in choice set depend upon the expected utility loss from making a suboptimal choice as a result of ignoring that incremental attribute. Guided by this analysis, we then develop a very general and practical empirical method for measuring the individual's propensity to attend to attributes. As a proof of concept, we offer an empirical example of our method using a conjoint analysis of demand for programs to reduce health risks. Our results suggest that respondents differentially allocate attention across attributes, as a function of the mix of attribute levels in a choice set. This behavior can cause researchers who fail to model attention allocation to incorrectly estimate the marginal utilities derived from selected attributes. This illustrative example is a first attempt to implement an attention-corrected choice model with a sample of field data from a conjoint choice experiment.

Description

63 p.

Keywords

Attribution (Social psychology)

Citation