nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2007‒12‒15
four papers chosen by
Philip Yu
Hong Kong University

  1. Integrating latent variables in discrete choice models – How higher-order values and attitudes determine consumer choice By Dirk Temme; Marcel Paulssen; Till Dannewald
  2. Convergent Validity of Revealed and Stated Recreation Behavior with Quality Change: A Comparison of Multiple and Single Site Demands By John C. Whitehead; Daniel Phaneuf; Christopher F. Dumas; Jim Herstine; Jeffrey Hill; Bob Buerger
  3. Validité théorique de la Méthode des Choix Discrets : le cas du Traitement Hormonal substitutif de la Ménopause By Florence Nguyen; Nora Moumjid; Alain Brémond; Marie-Odile Carrère
  4. Factors influencing travellers. mode choices: case study of Bari. By Elisabetta Venezia

  1. By: Dirk Temme; Marcel Paulssen; Till Dannewald
    Abstract: Integrated choice and latent variable (ICLV) models represent a promising new class of models which merge classic choice models with the structural equation approach (SEM) for latent variables. Despite their conceptual appeal, to date applications of ICLV models in marketing are still rare. The present study on travel mode choice clearly demonstrates the value of ICLV models to enhance understanding of choice processes. In addition to the usually studied directly observable variables such as travel time, we show how abstract motivations such as power and hedonisms as well as attitudes such as a desire for flexibility impact on travel mode choice. Further, we can show that it is possible to estimate ICLV models with the widely available structural equation modeling package Mplus. This finding is likely to encourage wider usage of this appealing model class in the marketing field.
    Keywords: Hybrid choice models; Mode choice; Values; Value-attitude hierarchy; Mplus
    JEL: C25 C51 C87 M31 R41
    Date: 2007–12
  2. By: John C. Whitehead; Daniel Phaneuf; Christopher F. Dumas; Jim Herstine; Jeffrey Hill; Bob Buerger
    Abstract: We consider the convergent validity of several demand models using beach recreation data. Two models employ multiple site data, the linked site-selection and trip frequency demand model and the Kuhn-Tucker demand system model. We exploit the effect of the existing variation in beach width on trip choices to analyze a 100 foot increase in beach width. We compare these models to a single site model where we jointly estimate revealed and stated preference data focusing on a hypothetical scenario that directly considers a 100 foot increase in beach width. In each case we develop estimates of the increased number of beach trips with an increase in beach width and the value of beach width. The trip estimates from each of the three models are similar and convergent valid. The convergent validity statistical test on willingness to pay suggests that the estimates converge between these models. However, the difference in magnitude is large. Key Words: Recreation Demand, Travel Cost Method, Convergent Validity
    JEL: Q51
    Date: 2007
  3. By: Florence Nguyen (University of Lyon, Lyon, F-69003, France; CNRS, UMR 5824, GATE, Ecully, F-69130, France; ENS LSH, Lyon, F-69007, France ; Centre Leon Berard, Lyon, F-69003, France); Nora Moumjid (University of Lyon, Lyon, F-69003, France; CNRS, UMR 5824, GATE, Ecully, F-69130, France; ENS LSH, Lyon, F-69007, France ; Centre Leon Berard, Lyon, F-69003, France); Alain Brémond (Centre Leon Berard, Lyon, F-69003, France); Marie-Odile Carrère (University of Lyon, Lyon, F-69003, France; CNRS, UMR 5824, GATE, Ecully, F-69130, France; ENS LSH, Lyon, F-69007, France ; Centre Leon Berard, Lyon, F-69003, France)
    Abstract: Discrete Choice Experiments (DCE) consists in providing individuals with fictive scenarios in which characteristics of the good to be evaluated are varying, and asking them to indicate their preferences. Under some behavioural hypotheses, DCE allows to explain individuals’ trade-offs between those characteristics. Since Hormone Replacement Therapy (HRT) presents risks, benefits and monetary costs we aim at exploring the potentialities of DCE regarding individual preferences elicitation, by an application to HRT. In this paper, we study the theoretical validity of the method by testing standard behavioural hypotheses: internal consistency, transitivity, and stability of the preferences, no lexicographic preferences, no framing effects. Methods: Eleven pairs of scenarios were derived from the following HRT attributes: climacteric troubles, osteoporosis fractures, colorectal cancer, breast cancer, cardiac risk, thromboembolism risk, and monetary cost of the treatment. Women’s demographics and medical background were also collected. Two versions of the questionnaire were developed and randomly administered allowing to test framing effects due to the presentation of probabilities. Theoretical validity was tested by descriptive statistics. Results: 462 women aged 45 to 65 and from Lyon, France, sent back their questionnaires. Internal consistency, transitivity and stability of preferences were observed in large proportions of women (95%, 97% and 88%, respectively). Only 12% expressed lexicographic preferences. No framing effect was detected on data quality. Conclusion: since behavioural hypotheses were verified, it will now be possible to estimate a utility function and to discuss women’s preferences and willingness to pay for HRT.
    Keywords: behavioral hypotheses, discrete choice experiments, hormone replacement therapy
    JEL: D61 D83 I19
    Date: 2007–11
  4. By: Elisabetta Venezia (University of Bari)
    Abstract: At present, the structural reform of the Italian local public transport is aimed at a potential re-launching of the sector which should make the engaged resources more productive, and, at the same time, at the achievement of more general objectives linked to sustainable mobility. In this light, on the one side, in this paper the case of Bari will be examined in depth as an example of in house assignment of transport service. On the other side, this paper presents some empirical results stemming from the estimation of a random utility model. The main findings are that notwithstanding the existence of a mediocre transport urban service, people would be in favour of using buses in the future. But this shift towards public transport needs to be encouraged through appropriate policies which could culminate in the achievement of a greater sustainability, otherwise we will most certainly have a difficult future characterised by higher car ownership and car usage.
    Keywords: urban transport, random utility model, sustainability
    Date: 2007–10

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