|
on Discrete Choice Models |
| By: | Frondel, Manuel; Sommer, Stephan; Tomberg, Lukas |
| Abstract: | Based on a survey among more than 5,000 German households and a single-binary choice experiment in which we randomly split the respondents into two groups, this paper elicits both households' willingness to pay (WTP) for power supply security and their willingness to accept (WTA) compensations for a reduced security level. In accord with numerous empirical studies, we find that the mean WTA value substantially exceeds the mean WTP bid, in our empirical example by a factor of 3.56. Yet, the WTA-WTP ratio decreases to 2.35 among respondents who believe that the hypothetical valuation setting is likely to become true. Conversely, the WTA-WTP ratio increases to 3.81 among respondents who deem the setting unlikely. On the basis of these results, we conclude that inquiring about respondents' perception of the realism of the valuation setting is an easy-to-implement and promising survey element to mitigate excessive WTA-WTP disparities, particularly if private or quasi-public goods are under scrutiny. |
| Keywords: | willingness-to-pay,willingness-to-accept,stated preferences |
| JEL: | D12 H41 Q41 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:832&r=all |
| By: | Carole Ropars-Collet; Philippe Le Goffe |
| Abstract: | Catch-and-release (C&R) could be an interesting management tool in recreational fisheries as long as mortality remains low and the anglers’ well-being does not drop. We used a choice experiment to examine the potential of C&R angling as a monitoring tool for the salmon recreational fishery in Brittany (France). Anglers were asked to choose between hypothetical fishing day trips differing in terms of their combination of relevant attributes and levels. From the analysis of respondents’ trade-offs between the fishing trip’s attributes, willingness-to-pay were estimated for each level of attribute. Our results show that anglers prefer unrestrictive regulations. All in all, the majority of the anglers nonetheless hold a positive valuation of a C&R fishing day, which could therefore be used to generate economic returns for the river once the TAC is reached. Lastly, the fishing season, and especially the level of river use, impact more on the value of fishing than C&R. |
| Keywords: | recreational activity, salmon fishing, catch and release, choice experiment |
| JEL: | C25 C9 Q26 Q22 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:rae:wpaper:202002&r=all |
| By: | Ropars-Collet, Carole; Le Goffe, Philippe |
| Abstract: | Catch-and-release (C&R) could be an interesting management tool in recreational fisheries as long as mortality remains low and the anglers’ well-being does not drop. We used a choice experiment to examine the potential of C&R angling as a monitoring tool for the salmon recreational fishery in Brittany (France). Anglers were asked to choose between hypothetical fishing day trips differing in terms of their combination of relevant attributes and levels. From the analysis of respondents’ trade-offs between the fishing trip’s attributes, willingness-to-pay were estimated for each level of attribute. Our results show that anglers prefer unrestrictive regulations. All in all, the majority of the anglers nonetheless hold a positive valuation of a C&R fishing day, which could therefore be used to generate economic returns for the river once the TAC is reached. Lastly, the fishing season, and especially the level of river use, impact more on the value of fishing than C&R. |
| Keywords: | Livestock Production/Industries |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ags:inrasl:300911&r=all |
| By: | L Maaya; M Meulders; N Surmont; Martina Vandebroek |
| Abstract: | Sustainability labels on food products provide information to consumers that the product has been produced in an ethical way. We explore the knowledge and purchasing behaviour of the organic label and fair trade label. Secondly, we investigate the willingness-to-pay (WTP) for food products bearing organic and fair trade labels. Thirdly, we evaluate the correlation in WTP for organic and fair trade. Lastly, we examine the effect of environmental and altruistic attitudes on WTP for both sustainability labels. We draw our conclusions by analyzing a stated choice experiment on consumers coffee buying behaviour in Flanders, Belgium. Our results suggest that knowledge for the fair trade label is higher than that of the organic label. The importance of the organic and fair trade labels on coffee purchase decisions and their WTP estimates were similar. We found a high correlation in WTP for both labels. Our results indicate significant effects of environmental and altruistic attitudes in WTP for both organic and fair trade labels. |
| Keywords: | Coffee, Organic, Fair trade, Willingness-to-pay, Attitudes |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:ete:kbiper:627923&r=all |
| By: | Shah, K.K; Ramos-Goñi, J.M; Kreimeier, S.; Devlin, N.J |
| Abstract: | To date there have been no value sets to support the use of the EQ-5D-Y in cost-utility analysis. Discrete choice experiments (DCEs) can be used to obtain values on a latent scale, but these values require anchoring at 0 = dead to meet the conventions of quality-adjusted life year (QALY) estimation. This Research Paper describes a study in which four stated preference methods for anchoring EQ-5D-Y values were compared - visual analogue scale, DCE (with a duration attribute), lag-time TTO and the recently developed 'location-of-dead' (LOD) element of the personal utility function approach. A sample of adult members of the UK general public valued both EQ-5D-3L health states from an adult perspective (considering their own health) and EQ-5D-Y health states from a child perspective (considering the health of a 10-year-old child). Overall, respondents gave lower values under the adult perspective compared to child perspective, with some variation across methods. Values for health state 33333 (the worst health state defined by the EQ-5D-3L and EQ-5D-Y descriptive systems) tended to be negative for the adult perspective and closer to 0 for the child perspective. The paper presents potential criteria for selecting a preferred anchoring method, and discusses the decision-making circumstances under which utilities and QALY estimates for children and adults need to be commensurate in order to achieve allocative efficiency. |
| Keywords: | Measuring and valuing outcomes |
| JEL: | I1 |
| Date: | 2020–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ohe:respap:002235&r=all |
| By: | Levon Barseghyan (Institute for Fiscal Studies); Francesca Molinari (Institute for Fiscal Studies and Cornell University); Matthew Thirkettle (Institute for Fiscal Studies) |
| Abstract: | This paper is concerned with learning decision makers' (DMs) preferences using data on observed choices from a fi nite set of risky alternatives with monetary outcomes. We propose a discrete choice model with unobserved heterogeneity in consideration sets (the collection of alternatives considered by DMs) and unobserved heterogeneity in standard risk aversion. In this framework, stochastic choice is driven both by different rankings of alternatives induced by unobserved heterogeneity in risk preferences and by different sets of alternatives considered. We obtain sufficient conditions for seminonparametric point identi fication of both the distribution of unobserved heterogeneity in preferences and the distribution of consideration sets. Our method yields an estimator that is easy to compute and that can be used in markets with a large number of alternatives. We apply our method to a dataset on property insurance purchases. We fi nd that although households are on average strongly risk averse, they consider lower coverages more frequently than higher coverages. Finally, we estimate the monetary losses associated with limited consideration in our application. |
| Keywords: | discrete choice, limited consideration, semi-nonparametric identifi cation |
| Date: | 2019–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:cemmap:08/19&r=all |
| By: | Agga Destya Arlingga (Master of Applied Economics, Padjadjaran University) |
| Abstract: | This paper aims to explore communities’ contribution toward and identify the factors affecting the availability of sanitation facilities. Sanitation has an important role in human life because it correlates with the fulfillment of basic human needs such as wastewater and solid waste management. This research employed two models as follows: First, the hedonic price model was used to estimate the willingness to pay for improved sanitation facilities. Second, it also utilizes the logistic model to understand the correlation between socio-economic characteristics and availability of improved sanitation facilities. Using the fifth wave of Indonesia Family Life Survey (IFLS) data, the results show that the availability of toilet with septic tank influences the value of the property in urban areas. Hence, people living in urban areas are willing to pay more for facilities. Moreover, the awareness of people in urban and rural areas affect their willingness to pay (WTP) for appropriate garbage handling. However, drainage facilities do not significantly influence the value of the property in urban and rural areas. Related with the presence of improved sanitation facilities, socio-economic characteristics such as education level and residential area influence in Indonesia compared to other characteristics. |
| Keywords: | Sanitation, Toilet with Septic Tank, Solid Waste, Drainage, Willingness to Pay, Socio-economic |
| JEL: | I0 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:unp:wpaper:202002&r=all |