Comparing Willingness To Pay Estimation Models For Conjoint Analysis: A Case Study Of Willingness To Pay For Biodegradable Containers For Plants

摘要

This study utilized and compared different econometric models to analyze conjoint analysis data to elicit floral customers? willingness to pay (WTP) for bio-degradable plant containers. From the conjoint data, this paper shows that mixed tobit models or mixed ordered probit models generate more accurate results than the tobit, ordered probit models, or linear models used in the literature. Accordingly, we conclude that mixed tobit or mixed ordered probit models should be used in conjoint analysis instead of tobit, ordered probit or linear models when there is a significant correlation between multiple evaluations from the same participants. The results of the study show that participants were willing to pay a price premium for biodegradable containers, but the premium was not the same for different types of containers