nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2012‒02‒20
three papers chosen by
Philip Yu
Hong Kong University

  1. Cruise tourism externalities and residents' support: A generalized ordered logit analysis By Brida, Juan Gabriel; Del Chiappa, Giacomo; Meleddu, Marta; Pulina, Manuela
  2. Intergenerational transmission of risk attitudes: A revealed preference approach By Leuermann, Andrea; Necker, Sarah
  3. A comparison of partial profile designs for discrete choice experiments with an application in software development By Kessels R.; Bradley J.; Goos P.

  1. By: Brida, Juan Gabriel; Del Chiappa, Giacomo; Meleddu, Marta; Pulina, Manuela
    Abstract: This paper investigates residents' preferences towards cruise tourism investment in their home port. The research uses data collected during the peak cruise season in 2011 at Messina, a port of call in Sicily, Italy. A generalized ordered logit analysis is run to analyse what factors influence the residents' preferences towards investment in cruise tourism. Positive and negative externalities produced by this economic activity, as well as socio-demographic and economic determinants are taken into account. Overall, the resource investment choice of residents in Messina was dependent upon: their income dependency on the cruise activity, their own personal cruise experience, family size, the expected increase in welfare (i.e. increase in public and private investment), whether they are affected by urban and rural gentrification and the value placed on community life style and heritage conservation. Nevertheless, residents would tend to decrease investments in cruise activity if they are female, retired or perceive the environment to be deteriorating. Implications for policy makers are drawn from the empirical findings. --
    Keywords: Cruise port of call,positive and negative externalities,residents' support,generalized ordered logit
    JEL: C25 D62 L83
    Date: 2012
  2. By: Leuermann, Andrea; Necker, Sarah
    Abstract: This study investigates whether the willingness to take income risks revealed by occupational choice is transmitted from parents to their children. Using data from the German Socio-Economic Panel (SOEP), we find that fathers' riskiness of job is a significant determinant of children's occupational risk, in particular sons' (excluding parent-child pairs with identical occupations). This is the first piece of evidence for intergenerational transmission of risk attitudes relying on real world behavior. It shows that not only individuals' own assessments of their risk attitudes correlate across generations (found by previous studies) but also risk preferences shown in exactly the same situation. --
    Keywords: risk preferences,intergenerational transmission,occupational choice
    JEL: D12 D81 J24
    Date: 2011
  3. By: Kessels R.; Bradley J.; Goos P.
    Abstract: In a discrete choice experiment, each respondent chooses the best product or service sequentially from many groups or choice sets of alternative goods. The alternatives, called pro¯les, are described by level combinations from a set of prede¯ned attributes. Respondents sometimes make their choices on the basis of only one dominant attribute rather than making trade-o®s among all the attributes. For example, in studies involving price as an attribute, respondents may always choose the profile with the lowest price. Also, a choice task including many attributes may encourage respondent decisions that are not fully compensatory. To thwart these behaviors, the investigator can hold the levels of some of the attributes constant in every choice set. The resulting designs are called partial pro¯le designs. In this paper, we construct D-optimal partial pro¯le designs for estimating main-e®ects models. We use a Bayesian design algorithm that integrates the D-optimality criterion over a prior distribution of likely parameter values. To determine the constant attributes in each choice set, we provide three alternative generalizations of an approach that makes use of balanced incomplete block designs. Each of our three generalizations constructs partial pro¯le designs accommodating attributes with any number of levels and allowing °exibility in the numbers of choice sets and constant attributes. We show results from an actual experiment in software development performed using one of these algorithms. Finally, we compare the algorithms with respect to their statistical e±ciency and ability to avoid failures due to the presence of a dominant attribute.
    Date: 2012–02

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