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on Discrete Choice Models |
| By: | Dellaert, B.G.C.; Swait, J.; Adamowicz, W.L.; Arentze, T.A.; Bruch, E.E.; Cherchi, E.; Chorus, C.G.; Donkers, A.C.D.; Feinberg, F.M.; Marley, A.A.J.; Salisbury, L.C. |
| Abstract: | This paper develops new directions on how individuals’ use of multiple goals can be incorporated in econometric models of individual decision making. We start by outlining key components of multiple, simultaneous goal pursuit and multi-stage choice. Since different goals are often only partially compatible, such a multiple goal-based approach implies balancing goals, leading to a deliberate goal-level choice strategy on the part of the decision maker. Accordingly, we introduce a conceptual framework to classify different aspects of individuals’ decisions in the presence of multiple goals. Based on this framework we propose a formalization of individual decision making when pursuing multiple goals. We briefly review different previous streams on goal-based decision making and how the proposed goal-driven conceptual framework relates to earlier research in discrete choice models. The framework is illustrated using examples from different domains, in particular marketing, environmental economics, transportation and sociology. Finally, we discuss identification and modeling needs for goal-based choice strategies and opportunities for further research. |
| Keywords: | Decision making, Goal-based decisions, Multi-stage decisions, Choice Modeling, Goal conflict |
| Date: | 2017–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:ems:eureri:99018&r=dcm |
| By: | Arthur Grimes (Motu Economic and Public Policy Research); Judd Ormsby (Motu Economic and Public Policy Research); Kate Preston (Motu Economic and Public Policy Research) |
| Abstract: | We analyse the relationships between subjective wellbeing (SWB), wages and internal migration. Our study addresses whether people make (revealed preference) location decisions based on SWB and/or wage prospects. We present both a theoretical intertemporal location choice model and empirical analyses using the Australian longitudinal HILDA dataset. Our theory predicts considerable heterogeneity in location choices for individuals at different life stages depending on their individual characteristics, including their rate of time preference. We find a significant and sustained uplift in SWB for migrants, which holds across a range of sub-samples. By contrast, wage responses are muted albeit with heterogeneity across groups. Our theory and results show that migration decisions are considered within a life-cycle context. The estimated pronounced upturn in SWB for migrants substantiates the usefulness of SWB both as a concept for policy-makers to target and for researchers to incorporate in their studies. |
| Keywords: | Regional migration, wages, subjective wellbeing, non-pecuniary amenities. |
| JEL: | D91 H75 I31 R23 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:17_07&r=dcm |
| By: | Arthur Grimes (Motu Economic and Public Policy Research); Judd Ormsby (New Zealand Treasury); Kate Preston (Motu Economic and Public Policy Research) |
| Abstract: | We analyse the relationships between subjective wellbeing (SWB), wages and internal migration. Our study addresses whether people make (revealed preference) location decisions based on SWB and/or wage prospects. We present both a theoretical intertemporal location choice model and empirical analyses using the Australian longitudinal HILDA dataset. Our theory predicts considerable heterogeneity in location choices for individuals at different life stages depending on their individual characteristics, including their rate of time preference. We find a significant and sustained uplift in SWB for migrants, which holds across a range of sub-samples. By contrast, wage responses are muted albeit with heterogeneity across groups. Our theory and results show that migration decisions are considered within a life-cycle context. The estimated pronounced upturn in SWB for migrants substantiates the usefulness of SWB both as a concept for policy-makers to target and for researchers to incorporate in their studies. |
| Keywords: | Regional migration, wages, subjective wellbeing, non-pecuniary amenities. |
| JEL: | D91 H75 I31 R23 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:17_01&r=dcm |
| By: | Bensch, Gunther; Peters, Jörg |
| Abstract: | Free distribution of a technology can be an effective development policy instrument if its adoption is socially inefficient and hampered by affordability constraints. Improved cookstoves may be such a case: they generate high environmental and public health returns, but adoption is generally low. Based on a randomized controlled trial in rural Senegal, this paper studies whether one-time free cookstove distribution affects households' willingness to pay (WTP) in the long run. Effects might be negative because people anchor their WTP on the earlier zero price (reference dependence) or positive because information deficits about potential benefits are overcome. We find that households who received a free stove six years back exhibit a higher WTP today compared to control households. Potential reference dependence effects are thus at least compensated by learning effects. Our findings suggest that one-time free distribution does not spoil future prices and might even be a stepping stone for future market establishment. |
| Keywords: | Technology adoption,cookstoves,willingness to pay,real-purchase offer,energy access |
| JEL: | D03 D12 O12 O13 Q41 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:685&r=dcm |