Does status quo interpretation affect welfare estimates?

Bakti Hasan-Basri, and Shamsul Bahrain Rawi, and Hamimi Omar, (2018) Does status quo interpretation affect welfare estimates? Jurnal Ekonomi Malaysia, 52 (3). pp. 115-128. ISSN 0127-1962


Official URL:


In choice experiments (CEs), respondents select their most preferred alternative from a series of choices. One of these alternatives is the status quo (SQ) option, which resembles the current scenario. Previous studies have shown that the way the researcher defines the SQ may be different from how the respondents interpret the same option. Using the case study of white water rafting (WWR) recreation, we investigated the effect of SQ definition on the demand function used to estimate the willingness to pay (WTP) of students who participate in WWR. We applied the confidence interval approach, where WTP values are considered to be significantly different if their confidence intervals do not overlap. We found that the WTP estimates for some attributes (i.e., challenge at the advanced and intermediate levels, and advanced safety) were statistically different. The number of significant estimates suggest that the SQ interpreted by the respondents (as an individual and as a group) are better than that of defined by the researchers. Therefore, we suggest that for purchasing decisions related to nature-based recreational goods such as WWR, the SQ should be determined by the respondents rather than by the researchers.

Item Type:Article
Keywords:Choice experiments (CEs); Status quo (SQ); Willingness to pay (WTP); White water rafting (WWR)
Journal:Jurnal Ekonomi Malaysia
ID Code:20075
Deposited By: ms aida -
Deposited On:05 Oct 2022 01:40
Last Modified:11 Oct 2022 09:20

Repository Staff Only: item control page