nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2007‒09‒16
four papers chosen by
Philip Yu
Hong Kong University

  1. Identifying Unknown Response Styles: A Latent-Class Bilinear Multinomial Logit Model By Rosmalen, J. van; Herk, H. van; Groenen, P.J.F.
  2. Job Satisfaction And Family Happiness: The Part-Time Work Problem By Booth, A.L.; Ours, J.C. van
  3. What's the Matter with Tie-breaking? Improving Efficiency in School Choice By Aytek Erdil; Haluk Ergin
  4. Network Architecture and Traffic Flows: Experiments on the Pigou-Knight-Downs and Braess Paradoxes By John Morgan; Henrik Orzen; Martin Sefton

  1. By: Rosmalen, J. van; Herk, H. van; Groenen, P.J.F. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: Respondents can vary significantly in the way they use rating scales. Specifically, respondents can exhibit varying degrees of response style, which threatens the validity of the responses. The purpose of this article is to investigate to what extent rating scale responses show response style and substantive content of the item. The authors develop a novel model that accounts for possibly unknown kinds of response styles, content of the items, and background characteristics of respondents. By imposing a bilinear structure on the parameters of a multinomial logit model, the authors can visually distinguish the effects on the response behavior of both the characteristics of a respondent and the content of the item. This approach is combined with finite mixture modeling, so that two separate segmentations of the respondents are obtained: one for response style and one for item content. This latent-class bilinear multinomial logit (LC-BML) model is applied to a cross-national data set. The results show that item content is highly influential in explaining response behavior and reveal the presence of several response styles, including the prominent response styles acquiescence and extreme response style.
    Keywords: response style;segmentation;visualization;multinomial logit model;cross-cultural research;
    Date: 2007–07–10
  2. By: Booth, A.L.; Ours, J.C. van (Tilburg University, Center for Economic Research)
    Abstract: Using fixed effects ordered logit estimation, we investigate the relationship between part-time work and working hours satisfaction; job satisfaction; and life satisfaction. We account for interdependence within the family using data on partnered men and women from the British Household Panel Survey. We find that men have the highest hours-of-work satisfaction if they work full-time without overtime hours but neither their job satisfaction nor their life satisfaction are affected by how many hours they work. Life satisfaction is influenced only by whether or not they have a job. For women we are confronted with a puzzle. Hours satisfaction and job satisfaction indicate that women prefer part-time jobs irrespective of whether these are small or large. In contrast, female life satisfaction is virtually unaffected by hours of work. Women without children do not care about their hours of work at all, while women with children are significantly happier if they have a job regardless of how many hours it entails.
    Keywords: part-time work;happiness;satisfaction;working hours;gender.
    JEL: J22 I31 J16
    Date: 2007
  3. By: Aytek Erdil; Haluk Ergin
    Abstract: Very little is known about the student-optimal stable mechanism when school priorities are weak. In current practice, the student proposing deferred acceptance algorithm is applied after indifferences in priority orders are broken with a lottery. Although such a tie-breaking procedure preserves stability, it adversely affects the welfare of the students since it introduces artificial stability constraints. We propose a simple procedure to compute a student-optimal stable matching when priorities are weak. The idea behind our construction relies on a new notion which we call a stable improvement cycle. Abdulkadiroglu, Pathak, and Roth (2006) report that had our algorithm been applied to the preference data of the 2003-2004 New York City High School Match, 6,854 students (10.5% of the 63,795 matched students) would have been matched with schools higher on their preference lists without hurting the others. We run simulations to understand the qualitative effects of correlation in preferences and of locational preference on the size of the efficiency gain. We also investigate the strategic properties of the class of student-optimal stable mechanisms.
    Keywords: School Choice, Student-Optimal Stable Mechanism, Weak Priorities, Stable Improvement Cycles
    Date: 2007
  4. By: John Morgan (University of California, Berkeley); Henrik Orzen (School of Economics, University of Nottingham); Martin Sefton (School of Economics, University of Nottingham)
    Abstract: This paper presents theory and experiments to investigate how network architecture influences route-choice behavior. We consider changes to networks that, theoretically, exhibit the Pigou- Knight-Downs and Braess Paradoxes. We show that these paradoxes are specific examples of more general classes of network change properties that we term the “least congestible route” and “size” principles, respectively. We find that technical improvements to networks induce adjustments in traffic flows. In the case of network changes based on the Pigou-Knight-Downs Paradox, these adjustments undermine short-term payoff improvements. In the case of network changes based on the Braess Paradox, these adjustments reinforce the counter-intuitive, but theoretically predicted, effect of reducing payoffs to network users. Although aggregate traffic flows are close to equilibrium levels, we see some systematic deviations from equilibrium. We show that the qualitative features of these discrepancies can be accounted for by a simple reinforcement learning model.
    Date: 2007–08

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