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on Discrete Choice Models |
| By: | Sam Desiere; Christian Walker; (-) |
| Abstract: | Shift work is a widespread but understudied phenomenon. This paper examines one specific aspect of shift work: the shift premium. To this end, we included a discrete choice experiment in an online survey targeted at night and shift workers. Respondents chose between a standard 9 am – 5 pm job paying €15 per hour and a job with shift work in which the wage randomly varied between €12 and €20. The results show that respondents demand sizeable shift premiums to prefer shift over daytime work, with higher premiums for more onerous working hours such as night shifts or rotating shifts. We observe substantial heterogeneity in the shift premium across respondents and provide suggestive evidence of labour market sorting. |
| Keywords: | shift work, shift premium, Willingness to Pay, discrete choice experiment |
| JEL: | C91 J31 J48 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:23/1074&r=dcm |
| By: | Heike Link; Dennis Gaus; Neil Murray; Maria Fernanda Guajardo Ortega; Flavien Gervois; Frederik von Waldow; Sofia Eigner |
| Abstract: | This paper deals with the data generation process implemented for an analysis of the impact of the 9-Euro ticket on mode choice. We discuss the assumptions made and procedures used to process a raw dataset that is based on GPS traces of individuals’ movements and on survey data into the choice-set for a discrete choice model. Several steps of cleaning and merging are described in order to a) obtain a reliable dataset; b) define available modal alternatives with attributes such as distance, duration, and costs; and c) impute the travel purpose for each movement to form. Our main contribution is to show that a systematic analysis of the sample obtained at different stages of data processing is important to make sure that the final sample is unbiased. Furthermore, we contribute by analysing the difference between observed travel time and travel time calculated by routing tools such as Google Maps. We show that the often- employed approach of estimating RP based choice models on the basis of observed travel times for the chosen mode of transport but calculated travel times for the non-chosen alternatives can introduce a structural bias into the sample. |
| Keywords: | Data processing, travel behaviour, GPS traces, discrete choice models, revealed preferences |
| JEL: | C55 C81 R41 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp2047&r=dcm |
| By: | Xia, Senmao; Ling, Yantao; de Main, Leanne; Lim, Ming K.; Li, Gendao; Zhang, Peter; Cao, Mengqiu |
| Abstract: | This study investigates how consumers’ willingness-to-pay (WTP) for green products affects the decisions made by the green supply chain players. Through the application of game theory and uncertainty theory, our findings show that a higher consumer WTP for green products usually leads to a higher retail price and market share of green products, which motivates retailers and manufacturers to invest more in green technology. We also find that an increased WTP for green products can spur retailers to reduce the optimal green cost-sharing rate due to the pressure of increasing costs. In addition, we find that retailers are willing to lower the cost sharing rate when the confidence level increases. Regarding the contributions made by this study, it is one of the first to explore the transmission mechanisms involved in the management of the green supply chain by linking consumers’ WTP for green products to strategic decisions made by green supply chain players under conditions of uncertainty. Furthermore, our study could help green supply chain players to optimise the cost sharing mechanisms they use to generate more revenue, due to the increase in WTP for green products, which will in turn help to facilitate a low carbon economy. |
| Keywords: | cost sharing; game theory; Green supply chain management; low carbon economy; uncertainty theory; willingness-to-pay |
| JEL: | Q50 D10 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:116895&r=dcm |
| By: | Dennis Gaus; Georg Hirte |
| Abstract: | As research indicates a gap between complex scientific measures of accessibility and simpler proxies used by firms, this paper analyses the impact of several market access indicators on the location decision of firms. It compares the role of inter- and intra-industry agglomeration as proxies of access with a newly developed gravity-based indicator incorporating transport distances and industry relations. The estimation results of a nested mixed multinomial logit model, based on a sample of 110, 083 German firms, provide evidence that agglomeration effects play an essential role in firms’ location choice, whereas the complex market access measure does not have a significant impact. This outcome holds true for large as well as small and medium sized enterprises and is confirmed in several robustness checks. Thus, the paper provides guidance to further research on companies’ location decisions, highlighting that access indicators should be chosen specifically for the scientific context, as well as to firms to make more efficient location choices from the perspective of market access. |
| Keywords: | Transportation, accessibility, location choice, agglomeration, market access |
| JEL: | L14 O18 R12 R32 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp2045&r=dcm |
| By: | Changkuk Im |
| Abstract: | This paper studies how to accurately elicit quality for alternatives with multiple attributes. Two multiple price lists (MPLs) are considered: (i) m-MPL which asks subjects to compare an alternative to money, and (ii) p-MPL where subjects are endowed with money and asked whether they would like to buy an alternative or not. Theoretical results show that m-MPL requires fewer assumptions for accurate quality elicitation compared to p-MPL. Experimental evidence from a within-subject experiment using consumer products shows that switch points between the two MPLs are different, which suggests that quality measures are sensitive to the elicitation method. |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2309.00114&r=dcm |
| By: | Sylvain Béal (Université de Franche-Comté, CRESE, F-25000 Besançon, France); Adriana Navarro-Ramos (Université de Saint-Etienne, GATE Lyon Saint-Etienne UMR 5824, F-42023 Saint-Etienne, France); Eric Rémila (Université de Saint-Etienne, GATE Lyon Saint-Etienne UMR 5824, F-42023 Saint-Etienne, France); Philippe Solal (Université de Saint-Etienne, GATE Lyon Saint-Etienne UMR 5824, F-42023 Saint-Etienne, France) |
| Abstract: | We consider the cost sharing issue resulting from the maintenance of a hazardous waste transportation network represented by a sink tree. The participating agents are located on the nodes of the network and must transport their waste to the sink through costly network portions. We introduce the Liability rule, which is inspired by the principles applied by the courts to settle cost-allocation disputes in the context of hazardous waste. We provide an axiomatic characterization of this rule. Furthermore, we show that the Liability rule coincides with the Priority Shapley value, a new allocation rule on an appropriate class of multi-choice games arising from hazardous waste transportation problems. Finally, we also axiomatize the Priority Shapley value on the full domain of multi-choice games. |
| Keywords: | Hazardous waste, transportation network, Liability rule, Priority Shapley value, multi- choice games |
| JEL: | C71 Q53 R42 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:crb:wpaper:2023-03&r=dcm |
| By: | Sylvain Béal (Université de Franche-Comté, CRESE, F-25000 Besançon, France); Adriana Navarro-Ramos (Université de Saint-Etienne, GATE Lyon Saint-Etienne UMR 5824, F-42023 Saint-Etienne, France); Eric Rémila (Université de Saint-Etienne, GATE Lyon Saint-Etienne UMR 5824, F-42023 Saint-Etienne, France); Philippe Solal (Université de Saint-Etienne, GATE Lyon Saint-Etienne UMR 5824, F-42023 Saint-Etienne, France) |
| Abstract: | We consider the cost sharing issue resulting from the maintenance of a hazardous waste transportation network represented by a sink tree. The participating agents are located on the nodes of the network and must transport their waste to the sink through costly network portions. We introduce the Liability rule, which is inspired by the principles applied by the courts to settle cost-allocation disputes in the context of hazardous waste. We provide an axiomatic characterization of this rule. Furthermore, we show that the Liability rule coincides with the Priority Shapley value, a new allocation rule on an appropriate class of multi-choice games arising from hazardous waste transportation problems. Finally, we also axiomatize the Priority Shapley value on the full domain of multi-choice games. |
| Keywords: | Hazardous waste, transportation network, Liability rule, Priority Shapley value, multi- choice games |
| JEL: | C71 Q53 R42 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:crb:wpaper:2023-04&r=dcm |
| By: | Tsanko, Ilona |
| Abstract: | I study the impact of subsidies for Plug-in hybrid vehicles (PHEV) on carbon emissions. I show that subsidizing innovations without considering consumer behavior can harm the environment. I provide descriptive evidence on charging instances of PHEV and combine it with a structural model of demand for new passenger vehicles to evaluate the market outcomes had subsidies for PHEV not been in place. I show that PHEV subsidies were used by consumers to purchase larger and heavier vehicles and that consumers of PHEV seldom charge their vehicle. Taking into account the observed consumer behavior, I find that the elimination of subsidies for PHEV would have led to a yearly reduction of 167, 139 tons of carbon emissions which are equivalent to the yearly carbon emissions 52, 916 households emit due to energy consumption. |
| Keywords: | Environmental regulation, Substitution, Carbon emissions, Automobiles, Demand estimation |
| JEL: | D12 H23 H71 Q48 Q58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:23033&r=dcm |
| By: | Kaicheng Chen; Robert S. Martin; Jeffrey M. Wooldridge |
| Abstract: | We reconsider the pros and cons of using a linear model to approximate partial effects on a response probability for a binary outcome. In particular, we study the ramp model in Horrace and Oaxaca (2006), but focus on average partial effects (APE) rather than the parameters of the underlying linear index. We use existing theoretical results to verify that the linear projection parameters (which are always consistently estimated by ordinary least squares (OLS)) may differ from the index parameters, yet still be identical to the APEs in some cases. Using simulations, we describe other cases where OLS either does or does not approximate the APEs, and we find that having a large fraction of fitted values in [0, 1] is neither necessary nor sufficient. A practical approach to reduce the finite sample bias of OLS is to iteratively trim the observations with fitted values outside the unit interval, which we find produces estimates numerically equivalent to nonlinear least squares (NLS) estimation of the ramp model. We show that under the ramp model, NLS is consistent and asymptotically normal. Based on the theory and simulations, we provide some suggestions for empirical practice. |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2308.15338&r=dcm |
| By: | Bernadette Power; Gavin C. Reid |
| Abstract: | This paper estimates simultaneously the supply and the demand determinants of the trademark adoption decision made by start-ups. We use a partial observability econometric model, as non-adoption is unobserved. Estimation is by maximum likelihood using the partial observability bivariate probit (POBP) model. This is run on a large (N > 13k) representative unbalanced longitudinal panel of surviving startups, derived from the Kauffman Foundation startup dataset (2004-2011) for the USA. Our model is shown to provide a good explanation of supply and demand determinants of trademark adoption, in terms of signs of key variables, and statistical significance. For example, size, incorporation, and expenditure on R&D are important on the supply-side; and copyrights, licensing out, and being in a high knowledge information sector, are important on the demand-side. Policy implications are considered, focusing on marginal and elasticity effects. |
| Keywords: | Trademark adoption, business start-ups, intellectual property, supply, and demand |
| JEL: | D01 D22 K11 L21 L26 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:cbr:cbrwps:wp537&r=dcm |
| By: | Nobuyuki Hanaki; Yuta Takahashi |
| Abstract: | We present and conduct a novel experiment on a dynamic beauty contest game motivated by the canonical New-Keynesian model. Participants continuously provide forecasts for prices spanning multiple future periods. These forecasts determine the price for the current period and participants’ payoffs. Our findings are threefold. First, the observed prices in the experiment deviate more from the rational expectations equilibrium prices under strategic complementarity than under strategic substitution. Second, participants’ expectations respond to announcements of future shocks on average. Finally, participants employ heuristics in their forecasting; however, the choice of heuristic varies with the degree of strategic complementarity. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:1213&r=dcm |