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on Discrete Choice Models |
| By: | Jonathan Chapman; Mark Dean; Pietro Ortoleva; Erik Snowberg; Colin Camerer |
| Abstract: | We use four incentivized representative surveys to study the endowment effect for lotteries in 4, 000 U.S. adults. We replicate the standard finding of an endowment effect—the divergence between Willingness to Accept (WTA) and Willingness to Pay (WTP), but document three new findings. First, we find little evidence that the endowment effect is related to loss aversion for risky prospects, counter to predictions of popular theories in economics. Second, WTA and WTP not only diverge, but are, at best, weakly correlated. Third, WTA and WTP strongly relate to other aspects of risk preferences. The structure of these behaviors points to different theories of the endowment effect. |
| Keywords: | Willingness To Pay, Willingness to Accept, endowment effect, loss aversion |
| JEL: | C90 D81 D91 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10200&r=dcm |
| By: | Alfred Galichon (NYU - NYU System, ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Optimal transport has become part of the standard quantitative economics toolbox. It is the framework of choice to describe models of matching with transfers, but beyond that, it allows to: extend quantile regression; identify discrete choice models; provide new algorithms for computing the random coefficient logit model; and generalize the gravity model in trade. This paper offer a brief review of the basics of the theory, its applications to economics, and some extensions. |
| Date: | 2021–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03936221&r=dcm |
| By: | Chin, Phaik Nie; Vaghefi, Negin |
| Abstract: | Purpose - This study examines knowledge, perceived risk, and precautionary behaviours among Malaysians during a global health crisis, which is the first health crisis experienced by most Malaysians. Method - A self-administered online survey questionnaire was sent across Malaysia, and A total of 686 usable data was collected. A contingent valuation using double-bounded dichotomous choice was adopted to estimate the willingness to pay (WTP). A multiple regression and four logit regressions were conducted to analyse the relationship among the variables. Findings - The study found that (1) females have higher COVID-19 knowledge and precautionary behaviours, (2) education level positively affects COVID-19 knowledge and risk perception, (3) age positively affects risk perception and precautionary behaviours, and (4) COVID-19 knowledge positively affects precautionary behaviours. In terms of willingness to get a vaccine, the study noticed that those with a higher COVID-19 knowledge, precautionary behaviours, and younger generation were more willing to get a vaccine. Based on the contingent valuation, the estimated WTP was US$ 57.50. Originality – This study serves as a guideline for future global health crisis in emerging countries including Malaysia. Implications - The study provides insights to the Malaysian government that the “nudge” policy should be continued by the Ministry of Health; and the vaccine cost that is accepted by Malaysians. |
| Keywords: | COVID-19, risk perception, precautionary behaviours, vaccine, contingent valuation, willingness to pay |
| JEL: | H1 H12 H41 I1 I18 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116211&r=dcm |
| By: | Lorenzo Stanca |
| Abstract: | A major concern with Bayesian decision making under uncertainty is the use of a single probability measure to quantify all relevant uncertainty. This paper studies prior robustness as a form of continuity of the value of a decision problem. It is shown that this notion of robustness is characterized by a form of stable choice over a sequence of perturbed decision problems, in which the available acts are perturbed in a precise fashion. Subsequently, a choice-based measure of prior robustness is introduced and applied to portfolio choice and climate mitigation. |
| Keywords: | Risk, Uncertainty, Robustness, Ambiguity, Robust statistics, Prior selection. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:cca:wpaper:690&r=dcm |
| By: | Geoffrey Castillo (VCEE - Vienna Center for Experimental Economics, University of Vienna) |
| Abstract: | Preference reversals between choice and valuation are typically studied with probabilities or with time delays. I extend them to social distances and document their existence in this new domain. |
| Keywords: | preference reversals, social distance |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03900751&r=dcm |