nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2012‒09‒03
two papers chosen by
Philip Yu
Hong Kong University

  1. Valuing the chances of survival of two distinct Eurasian lynx populations in Poland – do people want to keep doors open? By Anna Bartczak; Jürgen Meyerhoff
  2. A Note on Stability of Self-Consistent Equilibrium in an Asynchronous Model of Discrete-Choice with Social Interaction By Kaizoji, Taisei

  1. By: Anna Bartczak (University of Warsaw, Faculty of Economic Sciences); Jürgen Meyerhoff (Technische Universität Berlin Institute for Landscape and Environmental Planning)
    Abstract: This survey deals with valuing the social benefits of increasing chances of survival of the two main Eurasian lynx populations in Poland: the Lowland population and the Carpathian one. The populations are exposed to different risks of extinction. Using a discrete choice experiment we examined the influence of the initial degree of endangerment of those lynx populations on respondents’ funds allocation. The results show that instead of investing in the option with the expected higher outcome a main driver of individuals’ decisions regarding the conservation of threatened species seems to be loss aversion. Thus, people seem to try to keep options (doors) open by investing more in the more vulnerable population. Moreover, employing a scale-extended latent class model allowed to detect segments among individuals showing different types of response behavior and therefore improved the accuracy of the willingness to pay estimates considerably compared to a conditional logit model.
    Keywords: discrete choice models, loss aversion, Lynx conservation, scale-extended latent class model, threatened species
    JEL: Q23 Q51 Q56 Q57
    Date: 2012
  2. By: Kaizoji, Taisei
    Abstract: The aim of this paper is to demonstrate that dynamic paths in a model of discrete choice with social interactions, which have been developed by Brock and Durlauf (1999, 2001a, 2001b, 2006), converge some self-consistent equilibrium. To this aim, we propose an asynchronous model of discrete-choice with social interaction2 , in which the only individual selected cyclically is updated.
    Keywords: binary choice; social interactions; stability of self-consistent equilibrium; asynchronous model
    JEL: D71 C44 C02 C45 C25 D85
    Date: 2012–05–10

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