Taboo trade-off aversion: A discrete choice model and empirical analysis. (June 2018)

• Record Type: Journal Article
• Authors: Chorus, Caspar G.; Pudāne, Baiba; Mouter, Niek; Campbell, Danny
• Is Part Of: Journal of choice modelling. Volume 27(2018)
• Page Start: 37
• Page End: 49
• Publication Date: 2018-06
• Subjects: Decision making -- Periodicals; Social choice -- Periodicals; Decision making; Social choice; Periodicals; 302.13
• DOI: 10.1016/j.jocm.2017.09.002
• Languages: English
• ISSNs: 1755-5345

Abstract

Abstract: An influential body of literature in moral psychology suggests that decision makers consider trade-offs morally problematic, or taboo, when the attributes traded off against each other belong to different 'spheres', such as friendship versus market transactions. This study is the first to model and empirically explore taboo trade-off aversion in a discrete choice context. To capture possible taboo trade-off aversion, we propose to extend the conventional linear in parameters logit model by including penalties for taboo trade-offs. Using this model, we then explore the presence (and size) of taboo trade-off aversion in a data set specifically collected for this purpose. Results, based on estimation of a variety of (Mixed) Logit models with and without taboo trade-off penalties, suggest that there is indeed a significant and sizeable taboo trade-off aversion underlying choice behaviour of respondents. Highlights: Trade-offs between 'sacred' (e.g. human life) and 'secular' (e.g. money) attributes considered taboo. Large literature on taboo trade-off aversion (TTOA) in moral psychology. This paper first to model and empirically study TTOA in a discrete choice context. Developed models capture significant levels of TTOA in data collected by means of tailor made Stated Choice experiment.