Abstract
Previous studies have repeatedly shown that consumers' residential preferences are more predictable from a modified multiattribute utility (MAU) model than are their residential choices. The aim of the present studies was to test the hypothesis that the differential predictability may be due to housing cost influencing choices more than preference ratings. In the first study, preference ratings were again found to be more predictable than choices regardless of whether cost did or did not discriminate between alternatives. Further analyses revealed that rather than different importance of cost, the use of simplifying heuristics due to different demands imposed by choices and preference ratings accounted for the observed differential predictability. In the second study, preference ratings, ratings of willingness to pay, and choices were directly compared under conditions when cost did not discriminate between the alternatives. In addition to replicating the results of the first study, the correlation between choices and preference ratings was found to be higher than between any of them and the willingness-to-pay ratings. Further support was thus obtained for the conclusion that the differential predictability is not due to different importance of costs.
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