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on Discrete Choice Models |
| By: | Martin Christophe (CSGA - Centre des Sciences du Goût et de l'Alimentation [Dijon] - UB - Université de Bourgogne - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, UBFC - Université Bourgogne Franche-Comté [COMUE]); Christine Lange (CSGA - Centre des Sciences du Goût et de l'Alimentation [Dijon] - UB - Université de Bourgogne - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, UBFC - Université Bourgogne Franche-Comté [COMUE]); Stephan Marette (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Scientific literature has shown that a partial replacement of meat-based foods with plant-based foods would be beneficial for public health and the environment. However, both lack of sensory attractiveness and lack of consumer awareness regarding benefits of rebalancing diets in favor of plant protein partially explain the low market shares for meat alternatives. In the context of a possible substitution of a meat product (pork-based sausage) by a visually very close counterpart based on vegetable proteins, the objective of this work was to study the possibility of changing consumer preferences towards the plant-based product by gradually providing information concerning the health or environmental consequences of producing and consuming both types of products. We studied consumers' preferences after a blind tasting, after a tasting in the presence of the packaging, and after the dissemination of two stages of information. The assessment of consumer preferences was carried out using purchase preferences (PP) and willingness to pay (WTP). After the blind tasting, PP were clearly oriented towards the meat product. After the tasting with packaging information, the gap between the two products narrowed, but PP were still turned towards the meat product. The dissemination of a first informative message about either health or the environment was not enough to modify consumers' WTP. Adding a second message concerning health led to an equivalence of the two products studied in terms of WTP and PP. The combination of the two environmentally informative messages also made it possible to obtain an equivalence of the WTP for both products, but the PP were still turned towards the pork product. This suggests that the impact of additional information depends on the information disseminated. Overall, these results militate in favor of the dissemination of information presenting the consequences of the consumption of meat-based or vegetable protein-based products. |
| Keywords: | willingness to pay,purchase preference,meat substitute,information,taste,Consentement à payer,Préférence d'achat,Substitut à la viande,Information,Goût |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03022070&r= |
| By: | Panova, Elena |
| Abstract: | We consider the problem of sharing the cost of efficient uncongested tree-network among users with differentiated willingness to pay for the good supplied through the network. We nd that the associated value sharing problem is convex, hence, the core is large and we axiomatize a new, computationally simple core selection based on the idea of proportionality. |
| Keywords: | sharing network cost; core; proportional allocation |
| JEL: | C71 |
| Date: | 2022–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:127271&r= |
| By: | Marion Dupoux (GU - University of Gothenburg , IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Vincent Martinet (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CEPS - Centre d'Economie de l'ENS Paris-Saclay - Université Paris-Saclay - ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay) |
| Abstract: | Theoretical models often assume the environment to be a normal good, irrespective of one's income. However, a priori, nothing prohibits an environmental good from being normal for some individuals and inferior for others. We develop a conceptual framework in which private consumption and an environmental public good act as substitutes or complements for satisfying different needs. Subsequently, the environment can switch between normal and inferior depending on one's income and environment and corresponding prevalent needs. If the environment is inferior for some range of income, then the willingness to pay for environmental preservation becomes non-monotonic with respect to income. We discuss the relevance of our framework in the context of (income-adjusted) unit benefit transfers, dual-rate discounting and the Environmental Kuznets curve. |
| Keywords: | Environment,Public goods,Context-dependant substituability,Need,Willingness to Pay,Inferior good |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03693920&r= |
| By: | Alyssa Carlson (Department of Economics, University of Missouri-Columbia) |
| Abstract: | Previously, identification of triangular random coefficient models required a restriction on the dimension of the first stage heterogeneity or independence assumptions across the different sources of the heterogeneity. This note proposes a new identification strategy that does not rely on either of these restrictions but rather assumes conditional means are conditional linear projections in order to construct “correction functions†to address endogeneity and gain identification of the average partial effect. This identification strategy allows for both continuous and discrete instruments. Finally, a simple simulation illustrates that the proposed identification strategy is valid in settings where no other existing methods can identify average partial effects. |
| Keywords: | Endogeneity, Control Function, Random Coefficient, Conditional Linear Projection |
| JEL: | C3 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:umc:wpaper:2207&r= |
| By: | Victor H. Aguiar (University of Western Ontario); Per Hjertstrand (Research Institute of Industrial Economics, Sweden); Roberto Serrano (Brown University) |
| Abstract: | Samuelson’s (1938) weak (generalized) axiom of revealed preference– WGARP–is a minimal and appealing consistency condition of choice. We offer a rationalization of WGARP in general settings. Our main result is an exact analog of the celebrated Afriat’s theorem, but for WGARP. Its ordinal rationalization is in terms of an asymmetric and locally nonsatiated preference function. Its cardinal rationalization uses a coalitional multi-utility (CMU) maxmin representation with a coherency restriction on the coalition structure. Effectively, the CMU representation aggregates piecemeal preferences within the decision maker (multiple rationales without preference reversals that allow for transitivity violations). Basic consumer theory and welfare analysis are also developed. Extensions to the weak axiom of revealed preference–WARP–and choices obeying the law of demand are included. |
| Keywords: | abstract consumer choice; weak axiom of revealed preference; Afriat’s theorem; asymmetric preference function; coalitional multi-utility rationalization; welfare analysis |
| JEL: | C60 D10 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:uwo:uwowop:20229&r= |
| By: | Peter J. Simmons |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:yor:yorken:22/05&r= |
| By: | Mallory L. Avery; Osea Giuntella; Peiran Jiao |
| Abstract: | This study investigates the mechanisms affecting sleep choice and explores whether commitment devices and monetary incentives can be used to promote healthier sleep habits. To this end, we conducted a field experiment with college students, providing them incentives to sleep and collecting data from wearable activity trackers, surveys, and time-use diaries. Monetary incentives were effective in increasing sleep duration with some evidence of persistence after the incentive was removed. We uncover evidence of demand for commitment. Our results are consistent with partially sophisticated time-inconsistent preferences and overconfidence, and have implications for the effectiveness of information interventions on sleep choice. |
| JEL: | B49 C93 I10 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30375&r= |
| By: | Hanming Fang (University of Pennsylvania and the NBER); Long Wang (Fudan University); Yang Yang (The Chinese University of Hong Kong) |
| Abstract: | We provide new evidence on the causal effects of housing wealth on consumer behavior.To overcome the empirical challenge of non-random housing wealth changes, we exploit the unexpected announcement of China's newest national-level new area - Xiong'an New Area - on April 1, 2017 as an exogenous shock to housing prices. We use a proprietary dataset of individual-level online consumption from the largest e-commerce company in China to measure various aspects of consumer behavior, such as consumption patterns, purchase hesitation, tolerance to unsatisfied products, and shirking (proxied by making online purchases during work hours). We explore the underlying mechanisms through which the housing shock a effects consumer behavior; in particular, we attempt to disentangle the realizable and unrealizable housing wealth effects. |
| Keywords: | Housing price, wealth effects, consumer behavior, online consumption |
| JEL: | D1 R3 L81 |
| Date: | 2022–09–07 |
| URL: | http://d.repec.org/n?u=RePEc:pen:papers:22-021&r= |
| By: | Allister Loder; Fabienne Cantner; Andrea Cadavid; Markus B. Siewert; Stefan Wurster; Sebastian Goerg; Klaus Bogenberger |
| Abstract: | In spring 2022, the German federal government agreed on a set of measures that aimed at reducing households' financial burden resulting from a recent price increase, especially in energy and mobility. These measures included among others, a nation-wide public transport ticket for 9\ EUR per month and a fuel tax cut that reduced fuel prices by more than 15\,\%. In transportation research this is an almost unprecedented behavioral experiment. It allows to study not only behavioral responses in mode choice and induced demand but also to assess the effectiveness of transport policy instruments. We observe this natural experiment with a three-wave survey and an app-based travel diary on a sample of hundreds of participants as well as an analysis of traffic counts. In this third report, we provide first findings from the second survey, conducted during the experiment. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2208.14902&r= |
| By: | Marcus Roller |
| Abstract: | In this study, I provide a location choice model incorporating five pre-crisis determinants for tourists' destination choice to study the impact of these determinants on the resilience of tourism. The determinants are the kind of destination (rural vs. urban), the pre-crisis origin country specific attractiveness of the destination, the infrastructure size, the density, and the local culture. I estimate the effect of these determinants on the recovery of hotel overnight stays during the COVID-19 pandemic in Switzerland. I find that urban areas had an up to 75% percent lower recovery level. Half of this difference is due to their pre-crisis specific attractiveness for international tourists. This implies that a miss-match between long-run local touristic capital and domestic demand preferences prevents destinations from substituting the missing international tourists with domestic tourists. While infrastructure size affects the resilience ambiguously, density weakens the resilience in cities. Culture does not play a role if there are no local COVID-19 policies. |
| Keywords: | Tourism, COVID-19, resilience, structure, estimation |
| JEL: | Z3 R12 H12 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:rdv:wpaper:credresearchpaper39&r= |
| By: | Alger, Ingela |
| Abstract: | The 50-year old definition of an evolutionarily stable strategy provided a key tool for theorists to model ultimate drivers of behavior in social interactions. For decades economists ignored ultimate drivers and used models in which individuals choose strate-gies based on their preferences. This article summarizes some key findings in the literature on evolutionarily stable preferences, which in the past three decades has proposed models that combine the two approaches: Nature equips individuals with preferences, which deter-mine their strategy choices, which in turn determines evolutionary success. The objective is to highlight complementarities and potential avenues for future collaboration between biologists and economists. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:127268&r= |
| By: | Richard B. Freeman; Xiaofei Pan; Xiaolan Yang; Maoliang Ye |
| Abstract: | Team incentives are important in many compensation systems that pay workers according to the output of their team as well as to their own output, with team bonuses often depending on whether the team meets or exceeds specified thresholds. Yet little is known about how team members with different abilities respond to compensation rules and thresholds. We contrast the performance of lower ability participants and higher ability participants in an experiment with three distribution schemes – equal sharing, piece rate sharing, and tournament style winner-takes-all – in settings with and without a team threshold. Workers randomly assigned to equal sharing had higher productivity than those assigned to winner-takes-all and had similar productivity to workers in individual piece-rate scheme with no team element. Output under equal sharing was boosted by the higher productivity of less able workers, possibly motivated by a desire to avoid guilt feelings about letting down their partners, per models of guilt aversion. Given a choice of distribution schemes, participants selected piece rate sharing over equal sharing and favored both of those over winner-takes-all, with persons facing a team threshold evincing greater preference for equal sharing and concern about cooperation in chatting about the teams’ compensation system than others. The findings suggest that organizations with teams of workers with varying abilities are likely to do better if the organization can fully consider lower ability workers’ responsiveness to sharing in rewards, e.g., to have an equal sharing component in its compensation system when they are strongly guilt averse. |
| JEL: | C91 C92 D23 J33 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30427&r= |
| By: | Dimitris Christelis (University of Glasgow, CSEF, CFS, CEPR and Netspar); Dimitris Georgarakos (European Central Bank and CFS); Tullio Jappelli (Università di Napoli Federico II, CSEF, CFS, CEPR and Netspar); Geoff Kenny (European Central Bank) |
| Abstract: | We use new euro area representative data from the Consumer Expectations Survey (CES) to elicit household-specific propensities to invest and consume out of positive wealth shocks. Using a randomized assignment of hypothetical lottery gains ranging from 5,000 to 50,000 euros and a realistic menu of consumption, saving and asset choices, we estimate the causal effect of wealth shocks on risky asset ownership and conditional asset shares. Wealth shocks have a positive effect on stockholding (about a 10 percentage points increase for the largest wealth shock). The majority of households in the sample do not participate in the stock market, even after a large increase in wealth. The conditional asset share invested in stocks does not depend on the size of wealth shocks, with the small exception of very high values of the latter, for which the conditional risky asset share slightly increases. This result is consistent with the notion that preferences are characterized by constant relative risk aversion for the vast majority of risky asset investors. |
| Keywords: | Household finance; Stock market participation; Risk aversion; Consumer Expectations Survey. |
| JEL: | D14 G11 G51 |
| Date: | 2022–09–13 |
| URL: | http://d.repec.org/n?u=RePEc:sef:csefwp:652&r= |