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on Discrete Choice Models |
| By: | Paul Hindsley; Craig E. Landry; Kurt Schnier; John C. Whitehead; Mohammadreza Zarei |
| Abstract: | We estimate demand models with revealed preference (RP) site selection and stated preference (SP) discrete choice experiment marine recreational fishing data. We combine RP data from the Marine Recreational Information Program (MRIP) creel survey with SP survey data from 2003/04. RP and SP data combination is motivated by two factors. Catch rate information in the RP data are often thin, and use of SP scenarios for changes in catch can improve variation while minimizing multicollinearity. The SP data can suffer from hypothetical bias, which often manifests itself as bias in the cost coefficient. There are eight SP trip decisions and one RP trip decision for each of 1928 anglers who provided enough information to be analyzed. Joint RP-SP generalized multinomial logit models are estimated. We find that the SP travel cost coefficient is much lower than the RP travel cost coefficient in absolute value, suggesting hypothetical bias in the SP data. This difference is reflected in the willingness to pay estimates, where the SP estimates for improved catch are much higher than the RP estimates. Attribute non-attendance (ANA) arises when survey respondents ignore choice experiment attributes. We use inferred ANA methods to identify respondents who may be ignoring the SP cost variable. The generalized multinomial logit model accounting for ANA is statistically preferred. The SP cost coefficient accounting for ANA is much higher in absolute value than the SP coefficient from the model that does not account for ANA. The ANA model indicates much more consistency between the RP and SP data. The smaller difference in the travel cost coefficients is also reflected in the willingness to pay estimates. Key Words: |
| JEL: | Q51 Q22 Q26 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:21-10&r= |
| By: | Victor Ajayi (EPRG, CJBS, University of Cambridge); David Reiner (EPRG, CJBS, University of Cambridge) |
| Keywords: | Bio-based plastics, mixed logit, discrete choice experiment, willingness to pay, industrial decarbonisation, carbon capture |
| JEL: | D12 C25 Q51 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2033&r= |
| By: | Yau-Huo Shr; Wendong Zhang (Center for Agricultural and Rural Development (CARD)) |
| Abstract: | Discrete choice experiments have been extensively used to value environmental quality; however, some important attributes may often be omitted due to design challenges. In the case of agricultural water pollution, omitting downstream water quality benefits could lead to biased estimates and misinterpretations of local water quality attributes presented in choice experiments. Using a split-sample design and a statewide survey of Iowa residents, we provide the first systematic evaluation of how households' willingness-to-pay for water quality improvement when downstream water quality benefits, hypoxic zone reduction in our case, are omitted. We find that omitting non-local water quality attributes significantly reduces the total economic value of nutrient reduction programs but does not bias the marginal willingness-to-pay for local water quality attributes. We also find suggestive evidence showing that such omission, in line with the theoretical prediction, only changes the preferences of respondents who are aware of the downstream impacts of plans that led to local water quality improvement. In addition, our results show that providing information on the non-local water quality benefits of nutrient reduction increases support for water quality improvement plans but only among local residents who are less informed on water quality issues. |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:21-wp620&r= |
| By: | Bergstrom, John; Landry, Craig; Salazar, John |
| Keywords: | Environmental Economics and Policy, Resource/Energy Economics and Policy, Research Methods/Statistical Methods |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312805&r= |
| By: | Charles Collet (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Pascal Gastineau (AME-SPLOTT - Systèmes Productifs, Logistique, Organisation des Transports et Travail - Université Gustave Eiffel); Benoit Chèze (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles); Frederic Martinez (AME-DCM - Dynamiques des changements de mobilité - Université de Lyon - Université Gustave Eiffel); Pierre-Alexandre Mahieu (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IUML - FR 3473 Institut universitaire Mer et Littoral - UM - Le Mans Université - UA - Université d'Angers - UN - Université de Nantes - ECN - École Centrale de Nantes - UBS - Université de Bretagne Sud - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - CNRS - Centre National de la Recherche Scientifique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes) |
| Abstract: | The transportation sector constitutes one of the main contributors to CO2 emissions. Several incentive measures have been already proposed by economists to mitigate these emissions. But, as we all know, these tools have met with mixed success. This paper proposes the use of attribute valence framing, i.e. a description of the same object/characteristics positively or negatively, in order to reduce CO2 emissions. This so-called nudge is easier to implement than more traditional tools, such as taxation, and does not rely on the stringent assumption that individuals are fully rational. The findings from a discrete choice experiment focusing on long-distance travel choice are reported herein. Results indicate that a loss framing on CO2 emissions significantly increases the respondents' practice of pro-environmental behaviors. The framing effect is larger when applied to CO2 than to travel duration (+50% and +30% of the willingness to pay, respectively). In employing psychological constructs, it is shown that preferences are affected by individuals' psychological features (i.e. a preference for the future and environmental self-identity), and moreover that the magnitude of the framing effect depends on individuals' motivational strategies. |
| Keywords: | Framing effect,Discrete choice experiment,Pro-environmental behavior,Travelers' willingness to pay |
| Date: | 2021–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03321706&r= |
| By: | Luca Rigotti; Arie Beresteanu |
| Abstract: | We provide a sharp identification region for discrete choice models in which consumers' preferences are not necessarily complete and only aggregate choice data is available to the analysts. Behavior with non complete preferences is modeled using an upper and a lower utility for each alternative so that non-comparability can arise. The identification region places intuitive bounds on the probability distribution of upper and lower utilities. We show that the existence of an instrumental variable can be used to reject the hypothesis that all consumers' preferences are complete, while attention sets can be used to rule out the hypothesis that all individuals cannot compare any two alternatives. We apply our methods to data from the 2018 mid-term elections in Ohio. |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2108.06282&r= |
| By: | Gatti, Nicolas; Gomez, Miguel I.; Bennett, Ruth; Bowe, Justine |
| Keywords: | Marketing, Environmental Economics and Policy, Agribusiness |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312754&r= |
| By: | Arjan Non (Erasmus University Rotterdam, Erasmus School of Economics); Ingrid Rohde (Open University Netherlands and University of Bonn, Institute for Applied Microeconomics); Andries de Grip (Maastricht University, Research Centre for Education and the Labor Market); Thomas Dohmen (University of Bonn, Institute for Applied Microeconomics; Maastricht University; IZA) |
| Abstract: | We conduct a discrete choice experiment to investigate how the mission of high-tech companies affects job attractiveness and contributes to self-selection of science and engineering graduates who differ in prosocial attitudes. We characterize mission by whether or not the company combines its profit motive with a mission on innovation or corporate social responsibility (CSR). Furthermore, we vary job design (e.g. autonomy) and contractible job attributes (e.g. job security). We find that companies with a mission on innovation or CSR are considered more attractive. Women and individuals who are more altruistic and less competitive feel particularly attracted to such companies. |
| Keywords: | Mission of the company, sorting, discrete choice experiment, job characteristics, social preferences |
| JEL: | J81 J82 M52 |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:113&r= |
| By: | Bastola, Sapana; Penn, Jerrod; Hu, Wuyang; Blazier, Michael |
| Keywords: | Environmental Economics and Policy, Resource/Energy Economics and Policy, Research Methods/Statistical Methods |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312851&r= |
| By: | Kilders, Valerie; Caputo, Vincenzina; Lusk, Jayson L. |
| Keywords: | Research Methods/Statistical Methods, Research Methods/Statistical Methods, Institutional and Behavioral Economics |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312694&r= |
| By: | Hua, Yizhou; Wang, Hong Holly; Wilson, Christine A. |
| Keywords: | Teaching/Communication/Extension/Profession, Research Methods/Statistical Methods, Research Methods/Statistical Methods |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312834&r= |
| By: | Grunert, Klaus G G.; Hesselberg, Julie |
| Keywords: | Marketing, Research Methods/Statistical Methods, Agribusiness |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312642&r= |
| By: | Caputo, Vincenzina; Kilders, Valerie; Lusk, Jayson L. |
| Keywords: | Research Methods/Statistical Methods, Institutional and Behavioral Economics, Marketing |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312695&r= |
| By: | Rey, Patrick; Nocke, Volker |
| Abstract: | We consider a multiproduct seller facing consumers who must search to learn prices and valuations. The equilibrium features choice overload: the larger the product line, the fewer consumers start searching. We provide conditions under which the seller o¤ers too much or too little variety. We then allow the seller to position products or make recommendations, thereby introducing the possibility of directed search, and show that the seller may .nd it pro.table to maintain some noise. Finally, we study the seller.s incentive to disclose product identity and extend our analysis to that of a platform choosing which sellers to host. |
| Keywords: | Sequential consumer search; product variety; choice overload; multi-product firm; platform |
| JEL: | L12 L15 D42 |
| Date: | 2021–08–24 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:125850&r= |
| By: | Heshmatpour, Masoumeh; Hurley, Terrance M. |
| Keywords: | Productivity Analysis, Environmental Economics and Policy, Research Methods/Statistical Methods |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312837&r= |
| By: | Jan Willem Nijenhuis (University of Amsterdam) |
| Abstract: | Ordinal responses can be generated, in the time-series context, by different latent regimes or, in the cross-sectional context, by different unobserved groups of population. These latent classes or states can distort the inference in a traditional single-equation model. Finite mixture or regime switching models surmount the problem of unobserved heterogeneity or clustering through their flexible form. The available Stata command for finite mixture of ordered probit models, fmm: oprobit, does not allow for endogenous switching, when the unobservables in the switching equation are correlated with the unobservables in the outcome equations. We introduce two new commands, swopit and swopitc, that fit a switching ordered probit model for ordered choices with exogenous and endogenous switching between two unobserved regimes or groups. We provide a battery of postestimation commands, access the small-sample performance of the maximum likelihood estimator of the parameters and the bootstrap estimator of standard errors by Monte Carlo experiments, and apply the new commands to model the policy interest rates and health status responses. |
| Date: | 2021–08–07 |
| URL: | http://d.repec.org/n?u=RePEc:boc:scon21:22&r= |