nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2013‒03‒02
six papers chosen by
Edoardo Marcucci
Universita' di Roma Tre

  1. SP surveys for electric and alternative fuel vehicles: are we doing the right thing? By Jérôme Massiani
  2. Revealed preferences for climate protection when the purely individual perspective is relaxed: Evidence from a framed field experiment By Löschel, Andreas; Sturm, Bodo; Uehleke, Reinhard
  3. Using a choice experiment to manage the excess demand challenges facing the Sundays River Estuary recreational fishery in South Africa By Deborah E. Lee, Stephen G. Hosking and Mario Du Preez
  4. Choice overload, coordination and inequality: three hurdles to the effectiveness of the compensation mechanism? By Estelle Midler; Charles Figuières; Marc Willinger
  5. Time is money, but how much? The monetary value of response time for Thai ambulance emergency services By Jaldell, Henrik; Lebnak, P; Anurak, A; Krongkan, B; Khanisthar, P
  6. What does variation in survey design reveal about the nature of measurement errors in household consumption ? By Gibson, John; Beegle, Kathleen; De Weerdt, Joachim; Friedman, Jed

  1. By: Jérôme Massiani (Department of Economics, University Of Venice Cà Foscari)
    Abstract: This paper analyses the practice of SP surveys for Electric Vehicles and identifies a number of their limitations. Specifically it is found that SP surveys may not represent adequately several dimensions that are relevant in the context of EV purchase such as garage ownership, second versus first car, refueling conditions, and that they often neglect transitory technologies (Plug in Hybrid) which are instead an important element in the diffusion of EVs. This paper also provides a number of recommendations for practitioners to conceive more realistic SP surveys which could increase the validity of policy recommendations formulated by economists.
    Keywords: Stated Preferences surveys, Conjoint Analysis; electric cars, alternative fuel vehicles
    JEL: C53 O33
    Date: 2013
  2. By: Löschel, Andreas; Sturm, Bodo; Uehleke, Reinhard
    Abstract: In this paper, we investigate the real demand for climate protection when the purely individual perspective of existing revealed preference studies is relaxed. This is achieved in two treatments; first, we determine the information subjects receive about the demand revealed by other subjects in a similar decision making situation, second, collective action is implemented whereby all subjects are required to purchase the group's median quantity at a given price. Participants in the experiment were offered the opportunity to contribute to climate protection by purchasing European Union Allowances. Allowances purchased were withdrawn from the European Emissions Trading Scheme. In our experiment, information about other subjects' behaviour has no treatment effect on the demand for climate protection. Under collective action however, the probability of purchasing allowances is higher compared to the reference treatment situation, an individual contribution mechanism. Furthermore, we observe a strong correlation between subjects' demand and their expectations about other participants' behaviour. When collective action is not available, subjects' expectations are consistent with free rider behaviour. --
    Keywords: experimental economics,demand for climate protection,climate change,willingness to pay
    JEL: Q51 Q54 C93
    Date: 2013
  3. By: Deborah E. Lee, Stephen G. Hosking and Mario Du Preez
    Abstract: The Sundays River Estuary, situated in the Eastern Cape, South Africa, has excess recreational demand for estuarine services, specifically recreational fishing. The estuary has been over-fished, putting its sustainability at risk. Various management interventions may be required in order to save it, but how is this to be done without reducing welfare. This paper reports the application of a choice experiment to guide this very issue. It is found that the physical size of fish stocks is a very important predictor of recreational choice at the Sundays River Estuary, and it is recommended that demand be curtailed through an increase in the boat license fee for using the estuary of R174 per annum.
    Keywords: Estuary, demand management, recreational attributes, recreational fishery, choice experiment
    Date: 2013
  4. By: Estelle Midler; Charles Figuières; Marc Willinger
    Abstract: In this paper we test the effectiveness of a compensation mechanism when a negative externality is produced. It allows agents suffering from the negative externality to compensate those who reduce its production. Transfers are implemented via a two-stage design which is an adaptation of Varian’s mechanism. It has been previously tested in the lab with different types of games, and its effectiveness turns out to depend on the experiment, for unclear reasons which we try to decipher in this paper. Three possible explanations, choice overload, mere coordination and inequality, are proposed and studied. We show that, other things equal, the larger the size of the strategy space, the lower the mechanism’s efficiency (choice overload effect). Perhaps surprisingly, the data show that the appearance of additional equilibria does not jeopardize effectiveness (no mere coordination effect). Finally, inequality of outcomes plays a key role (fairness effect).
    Date: 2013–02
  5. By: Jaldell, Henrik (Dept. of Economics); Lebnak, P (Emergency Medical Institute Thailand, EMIT); Anurak, A (Emergency Medical Institute Thailand, EMIT); Krongkan, B (Emergency Medical Institute Thailand, EMIT); Khanisthar, P (Emergency Medical Institute Thailand, EMIT)
    Abstract: The monetary values for how much ambulance emergency services are calculated for two different time factors, response time, which is the time from when a call is received by the EMS call-taking centre until the response team arrives at the emergency scene, and operational time, which is the time from alarm to the accident scene and to the hospital. The study is performed in three steps. First, marginal effects of reduced fatalities and injuries for a minute change of the time factors are calculated using logistic regressions. Second, monetary values are chosen for fatalities and injuries; third, the marginal effects and the monetary values are put together to find a value per minute. The values are found to be 5.5 million Thai Baht per minute for fatality, 326,000 Baht per minute for severe injury, and 2,100 Baht per minute for slight injury. The total value of fatality, severe injury and slight injury for a one-minute improvement for each dispatch, summarized over one year, is 1.6 billion Thai Baht using response time. The resulting total values could be used on the benefit side in an economic cost-benefit analysis of investments, such as new technology, which could reduce the response and operational times.
    Keywords: Response time; cost-benefit; medicine; emergency; EMS
    JEL: D61 I31 R53
    Date: 2013–02–21
  6. By: Gibson, John; Beegle, Kathleen; De Weerdt, Joachim; Friedman, Jed
    Abstract: This paper uses data from eight different consumption questionnaires randomly assigned to 4,000 households in Tanzania to obtain evidence on the nature of measurement errors in estimates of household consumption. While there are no validation data, the design of one questionnaire and the resources put into its implementation make it likely to be substantially more accurate than the others. Comparing regressions using data from this benchmark design with results from the other questionnaires shows that errors have a negative correlation with the true value of consumption, creating a non-classical measurement error problem for which conventional statistical corrections may be ineffective.
    Keywords: Food&Beverage Industry,Consumption,Inequality,Economic Theory&Research,Statistical&Mathematical Sciences
    Date: 2013–02–01

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