Unravelling theory in choice analysis: do consumers fill in the blanks?

Kristina Edenbrandt, Anna; Haesler, Barbara

Abstract

Unravelling theory postulates that consumers assume products without quality information are of the lowest quality. In a discrete choice experiment (DCE) with 1987 respondents from the UK, we find evidence against this assumption. Affirmative disclosure, which indicates only quality above the lowest level, lowers marginal utilities compared to complete disclosure. The development in food choice DCE studies, from textual and complete towards visual and affirmative increases mean willingness to pay and error variance. This suggests that analysts should carefully consider how attributes are presented when designing DCEs to avoid biased welfare estimates, especially when aiming for accurate market predictions or policy advice.

Citation

Kristina Edenbrandt, A., & Haesler, B. (2025). Unravelling theory in choice analysis: do consumers fill in the blanks?. European Review of Agricultural Economics, https://doi.org/10.1093/erae/jbaf009

• Journal Article Type: Article
• Acceptance Date: Mar 5, 2025
• Online Publication Date: Mar 24, 2025
• Publication Date: Mar 24, 2025
• Deposit Date: Mar 25, 2025
• Publicly Available Date: Apr 8, 2025
• Print ISSN: 0165-1587
• Electronic ISSN: 1464-3618
• Publisher: Oxford University Press
• Peer Reviewed: Peer Reviewed
• DOI: https://doi.org/10.1093/erae/jbaf009
• Keywords: unravelling theory; unfolding theory; attribute representation; discrete choice analysis; choice experiment; information processing; welfare estimates; WILLINGNESS-TO-PAY; EYE-TRACKING; FOOD; PREFERENCES; DISCLOSURE; ATTENTION; PICTORIAL; VALIDITY