nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2012‒04‒10
two papers chosen by
Philip Yu
Hong Kong University

  1. The Willingness to Pay to Reduce School Bullying By Svensson, Mikael; Persson, Mattias
  2. An investigation of individual preferences: consistency across incentives and stability over time By Emmanouil Mentzakis; Jingjing Zhang

  1. By: Svensson, Mikael (Dept. of Economics); Persson, Mattias (Örebro University)
    Abstract: We use a discrete choice experiment conducted in Sweden to elicit the willingness to pay (WTP) to reduce school bullying. The estimations indicate a mean marginal WTP of 5.95 to 8.48 Swedish kronor (€0.66 to €0.95), which implies that the aggregate WTP for each reduced statistical victim of bullying (the value of a statistical bullying-victim - VSBV) is 585,090 to 835,280 Swedish kronor (€65,446 to €93,431). The results may be used to conduct economic evaluations of antibullying programs, with an example shown in this paper, and provide policymakers with useful information on taxpayers’ preferred allocations to antibullying programs
    Keywords: Willingness to Pay; Discrete Choice Experiment; Bullying; School; Adolescents
    JEL: D61 I12 I21
    Date: 2012–04–02
  2. By: Emmanouil Mentzakis; Jingjing Zhang
    Abstract: This study compares individual preferences across incentives (i.e., hypothetical vs. real incentives) and over time (i.e. elicitation at two different points in time) in a choice experiment involving charitable donating decisions. We provide evidence of hypothetical bias but little evidence of instability of individual giving. There is significant heterogeneity in individual preferences, with real incentives either dampening or pronouncing the observed donating behaviour. Neither hypothetical bias nor instability is observed when we examine the propensity of individuals to make internally consistent decisions over identical choices.
    Keywords: Individual preference, hypothetical bias, time inconsistency, discrete choice experiments, charitable donations
    JEL: C91 D11 D91 H40
    Date: 2012–04

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