nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2008‒12‒14
eight papers chosen by
Philip Yu
Hong Kong University

  1. Value of statistical life and cause of accident: A choice experiment By Carlsson, Fredrik; Daruvala, Dinky; Jaldell, Henrik
  2. Unobserved heterogeneity in the wine market: an analysis on Sardinian wine via Mixed Logit By Lai, Maria Bonaria; Del Giudice, Teresa; Pomarici, Eugenio
  3. Stakeholder Preferences for Water Management Alternatives in the Red River Basin By Torpen, David R.; Hearne, Robert R.
  4. Comparison of Perception of Risk and Willingness to Consume GM Foods By Wachenheim, Cheryl J.; Nganje, William E.; Lesch, William C.
  5. US Consumers' Willingness to Pay for Wool Product Attributes By Peterson, Hikaru Hanawa; Hustvedt, Gwendolyn; Chen, Yun-Ju
  6. Factors Influencing Artisanal Fisherfolks' Level of Support for Fishery Regulations: An Approach Using Alternative Ordered Logit Models By Garcia, Alexis Arthur B.; Rejesus, Roderick M.; Genio, Emmanuel L.
  7. Estimating Willingness to Pay for E10 fuel: a contingent valuation study By Bhattacharjee, Sanjoy; Petrolia, Daniel; Herndon, Cary W. "Bill" Jr.

  1. By: Carlsson, Fredrik (Department of Economics, School of Business, Economics and Law, Göteborg University); Daruvala, Dinky (Department of Economics, Karlstad University); Jaldell, Henrik (Department of Economics, Karlstad University)
    Abstract: The purpose of this study is to compare value of statistical life (VSL) estimates for traffic, drowning and fire accidents. Using a choice experiment in a mail survey of 5000 Swedish respondents we estimated the willingness to pay for risk reductions in the three accidents. In the experiment respondents were asked in a series of questions, whether they would choose risk reducing investments where type of accident, cost of the investment, the risk reduction acquired, and the baseline risk varied between questions. The VSLs for fire and drowning accidents were found to be about 1/3 lower than that for traffic accidents. Although respondents worry more about traffic accidents, this alone cannot explain the difference in VSL estimates. The difference between fire and drowning accidents was not found to be statistically significant.<p>
    Keywords: Stated preferences; statistical life; risk; traffic; fire; drowning; choice experiment
    JEL: D60 D81 R41
    Date: 2008–12–09
  2. By: Lai, Maria Bonaria; Del Giudice, Teresa; Pomarici, Eugenio
    Keywords: wine consumption. mixed logit, Demand and Price Analysis,
    Date: 2008–11
  3. By: Torpen, David R.; Hearne, Robert R.
    Abstract: Effective and efficient water management implies understanding the wants and desires of the human populations through its key stakeholder groups. As a valuable resource that involves many regulating and managing players, the Red River of the North basin is an excellent case for studying stakeholder preferences and presenting them to involved managers. The primary goal of this research was to analyze stakeholder preferences for hypothetical Red River basin fresh water management alternatives. Specific objectives included comparing preferences across key stakeholder groups and estimating residents€٠willingness to pay for additional water management programs. Initial experts€٠and focus group meetings were used to select appropriate attributes and levels to be used within a stated choice experiments analysis. The final list of attributes included: additional recreation opportunities, water supply augmentation projects, water quality initiatives, and the type of institution that would be trusted. An additional levy upon annual property taxes, ranging from $20 to $240, was used as the price of these additional programs. Mail surveys were sent to three main stakeholder groups: informed stakeholders, who had attended the Red River Basin Commission water management conference; decision-makers, including county commissioners and mayors in basin constituencies; and random residents. An overall response rate of 34% was achieved. One interesting result was the general homogeneity of opinions across stakeholder groups. A log likelihood test failed to reject the hypothesis that stakeholders€٠preferences were the same across groups. Results from the pooled nested logit model show younger respondents, males, non-farmers and those categorized as pro resource conservation in favor of additional water management projects. Initiatives that were favored by respondents included: phosphorous and nitrogen reduction and enhanced fishery management. Because the population of random residents did not demonstrate a preference for any additional water management option as opposed to the status quo, willingness to pay was not estimated.
    Keywords: choice experiments, stakeholder analysis, Red River of the North, stated preferences, water resources management, Environmental Economics and Policy, Land Economics/Use, Resource /Energy Economics and Policy,
    Date: 2008–04
  4. By: Wachenheim, Cheryl J.; Nganje, William E.; Lesch, William C.
    Abstract: The dichotomy between perceptions of the acceptability of risk associated with genetically modified (GM) foods and willingness to consume GM foods is investigated. Results indicate that some consumers are willing to consume GM foods even though they may perceive such foods as somewhat unsafe, with determinants such as self-perceived knowledge about the availability of GM foods and altruistic motives having positive and significant impacts on their consumption decision. Efforts towards decreasing perceptions of risk and ultimately increasing acceptance of, and demand for, GM foods should address issues related to their altruistic characteristics and outrage.
    Keywords: Genetic modified foods, multinomial logit, risk perception, willingness to consume GM foods, Food Consumption/Nutrition/Food Safety, Q19, D12,
    Date: 2008
  5. By: Peterson, Hikaru Hanawa; Hustvedt, Gwendolyn; Chen, Yun-Ju
    Abstract: Choice experiments were conducted to assess US consumer demand for woolproduct attributes. The average consumer's WTP was higher for US wool gloves compared to acrylic gloves. For Australian wool gloves, WTP was lower if consumers read information on husbandry practices. Demand for attributes varied across socioeconomic and psychographic characteristics.
    Keywords: Demand and Price Analysis,
    Date: 2008
  6. By: Garcia, Alexis Arthur B.; Rejesus, Roderick M.; Genio, Emmanuel L.
    Abstract: This article examines factors influencing fishers' decision to support fishery regulations in coastal communities in the Philippines. Using the partial proportional odds variant of the ordered logit model, we show that higher education levels, implementation of regulatory ordinances, and the effectiveness of law enforcement significantly affect the likelihood of supporting fishery regulations in coastal communities.
    Keywords: Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,
    Date: 2008
  7. By: Bhattacharjee, Sanjoy; Petrolia, Daniel; Herndon, Cary W. "Bill" Jr.
    Abstract: In this study, we measure willingness to pay for E10 fuel by US consumers employing a contingent valuation technique in a simultaneous latent variable equation framework. The simultaneous equation framework helps us to understand the way consumers' perceptions about ethanol are developed and influence their respective buying behavior.
    Keywords: E10 ethanol, perceptions and economic choice, latent variable, random utility models, Institutional and Behavioral Economics, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, C12, C35, D12,
    Date: 2008
  8. By: Dofonsou, Sika Gbègbèlègbè; Lowenberg-DeBoer, James
    Abstract: This paper provides a critical review of the literature on non-market valuation methods to estimate the welfare impact of novel products; it is the first study to assess both observed data- and perception-based methods as non-market valuation methods. Observed databased methods include budgets, regression, mathematical programming, and simulation. Perceptions-based methods include the contingent valuation method, choice-based conjoint analysis and experimental methods. Findings imply that the preferred observed data-based method to estimate the ex ante economic impact of a new technology on the welfare of the farm household is a combination of simulation and mathematical programming. The preferred perceptionbased method for estimating the ex ante impact of a novel product on the welfare of an economic agent is represented by experimental methods. Findings also imply that observed-data based methods and more specifically mathematical programming are more popular for estimating the ex ante farm-level economic impact of a new technology. On the other hand, perception-based methods are more popular for estimating the economic impact of a novel product for consumers.
    Keywords: Staff working papers, Dept. of Agricultural Economics, Internet publications, Purdue University, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, B0, B4, C0, C6, R2,
    Date: 2008

This nep-dcm issue is ©2008 by Philip Yu. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.