nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2015‒01‒31
nineteen papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Are Thai consumers willing to pay for food safety labels? Choice experiment on fresh produce By Wongprawmas, Rungsaran ; Canavari, Maurizio ; Waisarayutt, Chutima
  2. The Value of Policies to Conserve Native Pollinating Bees in Northern Thailand – A Discrete Choice Experiment By Narjes, Manuel ; Lippert, Christian
  3. Estimating Desirable Cattle Traits Using Latent Class and Mixed Logit Models: A Choice Modeling Application to the U.S. Grass-Fed Beef Industry By Sitienei, Isaac ; Gillespie, Jeffrey ; Harrison, Robert ; Scaglia, Guillermo
  4. Consumers' preferences towards biodiesel in the Spanish transport sector: A case study in Catalonia By Kallas, Zein ; Gil, José Maria
  5. Consumer acceptance of an EU/non-EU label of origin of beef: an analysis of attribute attendance in a discrete choice experiment By Lagerkvist, Carl Johan ; Hess, Sebastian
  6. A methodological proposal to approach farmers’ adoption behavior: stated preferences and perceptions of the innovation By Roussy, Caroline ; Ridier, Aude ; Chaib, Karim
  7. Relationship between attention and choice making By Grebitus, Carola ; Seitz, Carolin
  8. Demand for Watershed Services: Understanding Local Preferences through a Choice Experiment in the Koshi Basin of Nepal By Rajesh Kumar Rai ; Mani Nepal ; Priya Shyamsundar ; Laxmi Dutt Bhatta
  9. A choice experiment of farmer’s acceptance and adoption of irrigation water supply management policies By Alcon, Francisco ; Tapsuwan, Sorada ; Brouwer, Roy ; de Miguel, María Dolores
  10. A Note On Price Effects In Conditional Logit Models. By Colombino, Ugo
  11. Willingness to pay for agricultural yield insurance is affected by starting point bias By Myyrä, Sami ; Liesivaara, Petri
  12. Producer Preferences for Contracts on a Risky Bioenergy Crop By Krah, Kwabena ; Petrolia, Daniel ; Coble, Keith ; Williams, Angelica ; Harri, Ardian
  13. Public Support for Growth and Funding in Built Environments: Case of an Arboretum By Penn, Jerrod M. ; Trull, Nathaniel U. ; Hu, Wuyang
  14. Willingness to Pay for Tennessee Beef among Tennessee Consumers By Dobbs, Leah ; Jensen, Kimberly ; Leffew, Megan ; English, Burton ; Lambert, Dayton ; Clark, Christopher
  15. Willingness to Pay for Niche Fresh Produce across the States: Why Are Consumers Willing to Pay More for the Less Favorite? By Chen, Xuqi ; Gao, Zhifeng ; House, Lisa
  16. Adoption of biodegradable mulching films in agricultural: is there a negative prejudice towards materials derived from organic wastes? By Scaringelli, Myriam Anna ; Giannoccaro, Giacomo ; Prosperi, Maurizio ; Lopolito, Antonio
  17. Does food aid disrupt local food market? By Ferrière, Nathalie ; Suwa-Eisenmann, Akiko
  18. The implications across Europe of the ‘horse meat scandal’ on the monetary value of meat authenticity and food safety in ready to heat lasagne: evidence from six countries By Boeri, Marco ; Brown, Hannah ; Longo, Alberto
  19. An Analysis of Tourists’ Preferences and Perceptions for Gulf Coast Seafood: Does Labeling Matter By Robinson, Derrick ; Hite, Diane

  1. By: Wongprawmas, Rungsaran ; Canavari, Maurizio ; Waisarayutt, Chutima
    Abstract: Thai government introduced a food safety label (Q mark) to help consumers recognizing produce with higher level of safety assurance. Producers and retailers are sceptical on whether Thai consumers place value on it, thus they are reluctant to apply to obtain certification and label. This study aims to estimate the value Thai consumers place on food safety labels for fresh produce using a discrete choice experiment approach and a mixed logit (RPL) model. A sample of 350 Thai consumers was surveyed in Bangkok in 2013. Thai consumers are willing- to-pay a premium price for food safety labelled produce over unlabelled ones.
    Keywords: food safety label, stated choice experiment, mixed logit, fresh produce, Thailand, Consumer/Household Economics,
    Date: 2014–08
  2. By: Narjes, Manuel ; Lippert, Christian
    Abstract: This study attempts at estimating, with a discrete choice experiment, the preference of longan (Dimocarpus longan) farmers for changes in the population of native bees and for three (widely recognized) strategies to conserve them in Chiang Mai Province, Thailand. Thereby, the part-worth utilities of these policy attributes were estimated with a conditional logit model, indicating a positive contribution, ceteris paribus, of the analyzed policy elements to the probability of a conservation policy profile being chosen. The inclusion of a cost attribute allowed the calculation of willingness to pay estimates. Significant taste heterogeneity was also identified within a mixed logit model.
    Keywords: Native Bee Conservation, Crop Pollination, Northern Thailand, Discrete Choice, Environmental Economics and Policy,
    Date: 2014–08
  3. By: Sitienei, Isaac ; Gillespie, Jeffrey ; Harrison, Robert ; Scaglia, Guillermo
    Abstract: This study examines preferences for cattle traits using mixed logit and latent class models. Choice experiment data from a 2013 mail survey of 1,052 U.S. grass-fed beef producers were used. Preliminary results indicate that producers prefer lower-priced, heavy, black, and easy-to-handle feeders backgrounded from their own cows.
    Keywords: Farm Management, Livestock Production/Industries, Production Economics, Research Methods/ Statistical Methods,
    Date: 2015
  4. By: Kallas, Zein ; Gil, José Maria
    Abstract: In this paper, we analyse the opinions, attitudes and willingness of consumers to pay for biodiesel as an alternative to diesel in Barcelona province. Data were gathered from face-toface structured questionnaires from 300 diesel car owners/users that regularly purchase fuel. A variation of the traditional choice experiments (CE) was used by excluding the price attribute from the design. In a subsequent contingent valuation (CV) exercise, respondents were asked to state their maximum willingness to pay (WTP) for their preferred choice sets using the “payment card” format. The relative importance of the attributes and levels were calculated by estimating a random parameter logit model. The results demonstrated, contrary to the literature in Spain, that consumers were not willing to pay for biodiesel, especially when its production may negatively affect food prices. The main limitation was that car manufacturers do not recommend its use. The public authorities are asked to work jointly with the automotive industry to address this drawback.
    Keywords: Biodiesel, Willingness to pay, Choice Experiments, Catalonia, Consumer/Household Economics, Resource /Energy Economics and Policy,
    Date: 2014–08
  5. By: Lagerkvist, Carl Johan ; Hess, Sebastian
    Abstract: This paper reports on consumer acceptance of an EU/non-EU label of origin instead of a specific country of origin denomination. Data from a discrete choice experiment were analysed for attribute attendance using a Generalised Linear Random Effects Panel Model with Logistic Link function. The results indicated that the propensity to choose EU/non-EU denomination of origin depended on the total number of other labelling credence attributes provided. Interaction effects were found between number of quality cues and price level. The direct effect of price outweighed the influence of more information, and the amount of information in itself was not enough to grant choice. The compensatory qualities of each credence attribute in relation to the EU/non-EU origin denomination differed. Cues relating to animal welfare and far-reaching traceability had the highest likelihood of influencing choice of the EU/non-EU denomination of origin.
    Keywords: Meat labelling, information cues, consumer acceptance, choice experiments, attribute attendance, Consumer/Household Economics,
    Date: 2014–08
  6. By: Roussy, Caroline ; Ridier, Aude ; Chaib, Karim
    Abstract: In order to approach farmers’ adoption behavior of innovative cropping systems (ICS) on a sample of specialized cereal French farmers, a methodological protocol combining stated preferences and perceptions is designed. An original choice modelling protocol allows analyzing farmers’ preferences facing an adoption decision (dichotomous choice) but also the level of adoption (number of hectare adopted). By gathering the data on farmers’ preferences, perceptions and characteristics, this experiment allows revealing the determinants of the adoption of ICS.
    Keywords: adoption, innovative cropping system, stated preferences, perception, Research and Development/Tech Change/Emerging Technologies,
    Date: 2014–08
  7. By: Grebitus, Carola ; Seitz, Carolin
    Abstract: Choice experiments are often used to determine consumers’ preferences and willingness to pay for product attributes. The design of choice experiments and its influence on measurement of consumer choices has received considerable attention. This study analyzes the influence of attention on the final choice by combining choice experiments with eye tracking. Furthermore, the role of choice set complexity on choice is investigated. Results show that in less complex designs the total gaze time, i.e., overall attention, influences the choice. In contrast, in more complex designs the time to first fixation, i.e., the first look at an attribute affects the choice.
    Keywords: Attention, Attributes, Bias, Choice experiments, Perception, Consumer/Household Economics,
    Date: 2014–08
  8. By: Rajesh Kumar Rai ; Mani Nepal ; Priya Shyamsundar ; Laxmi Dutt Bhatta
    Abstract: In this study, we undertake a choice experiment in order to identify differences in local demand for watershed services in the Koshi basin of Nepal. We first examine the possibility of using a non-monetary numéraire to estimate household willingness-to-pay for watershed services. Survey results indicate that while some 50% of the population is willing to pay in monetary terms for environmental services, this number goes up to 75% when asked to contribute in labor time. Social benefits from environmental services are 1.4 to 2.2 times higher in labor hours relative to benefits estimated in monetary terms. Thus, in developing countries, households are more likely to express their demand for watershed services by offering their time rather than making a monetary payment. Our results also suggest that locational differences matter. Down-stream community members, who practice commercial vegetable farming, have a higher demand for watershed services and are willing to pay a third more than upstream farmers for these services.
    Keywords: Choice Experiment, Labor Contribution, Mode of Payment, Opportunity Cost of Time, Watershed Services
  9. By: Alcon, Francisco ; Tapsuwan, Sorada ; Brouwer, Roy ; de Miguel, María Dolores
    Abstract: The efficient and sustainable use of water is becoming standard practice in water scarce regions and pro-active policy initiatives are taken to increase supply reliability considering the local context. The aim of this paper is to evaluate farmers’ acceptance of policy strategies to increase water supply reliability in a water scarce river basin in the south east of Spain. Results from a choice experiment study suggest that farmers are willing to pay double water prices to ensure water supply reliability, through government supply guaranteed programs. However, they are averse to any other institutional changes that could assist the government to achieve increased water supply.
    Keywords: irrigation water, Spain, choice experiment, water policy, Institutional and Behavioral Economics,
    Date: 2014–08
  10. By: Colombino, Ugo (University of Turin )
    Date: 2014–12
  11. By: Myyrä, Sami ; Liesivaara, Petri
    Abstract: Approach to agriculture risk management has extended in the EU and the possibilities of public support for yield risk management have increased. Crop insurance products are supported in EU’s Common Agricultural policy (CAP). The problem in policymaking is finding the balance between crop insurance supply and demand, because adequate data on farm-specific yield density functions are rarely available. We used a choice experiment (CE)to evaluate the willingness of farmers to buy crop insurance products. Demand for crop insurances was revealed, but we found that farmers anchor their willingness to pay for crop insurances to the price levels introduced.
    Keywords: Crop insurance, Choice experiment, split sample, Risk and Uncertainty,
    Date: 2014–08
  12. By: Krah, Kwabena ; Petrolia, Daniel ; Coble, Keith ; Williams, Angelica ; Harri, Ardian
    Abstract: This study employs a stated choice experiment survey to identify producer preferences for contracts to produce Giant Miscanthus. Preliminary results indicate that price offered per ton of harvested Miscanthus, yield insurance availability, and biorefinery harvest have significant positive effects on the probability of a producer accepting a contract to produce Giant Miscahthus. The results show that risk-neutral farmers as more willing to accept contracts relative to risk-loving farmers, ceteris paribus. Farmers who perceive yield risk of Miscathus to be greater than their current crop are less likely to accept Giant Miscanthus contracts.
    Keywords: Giant Miscanthus, Contracts Attributes, Choice Experiment, Resource /Energy Economics and Policy, Risk and Uncertainty,
    Date: 2015
  13. By: Penn, Jerrod M. ; Trull, Nathaniel U. ; Hu, Wuyang
    Abstract: This study uses a choice experiment to identify user values of potential structural improvements in a university arboretum. The survey was distributed to arboretum visitors (N=300) during Arbor Day weekend 2014. The six Choice Experiment attributes were the potential installation of a Pollinator Garden, Covered Picnic Tables, Vending Machines, and more controversially, a Perimeter Fence, a commuter Bike Path, with a monthly parking pass as the payment vehicle. These attributes were chosen to guide policy decisions for potential revenue generation (e.g. vending machines and parking) and to attract new visitors without alienating current users. It was important to choose attributes that were within the control of the arboretum. To date, we know of only one published study in the United States considering arboretum value by Downing and Roberts (1991), which used the Travel Cost Method to consider holistic values of another university’s arboretum. Results show the greatest positive WTP for the pollinator garden at $3.65 per user per month. While the bike path and perimeter fence are controversial issues in the surrounding neighborhoods, our results show a high WTP in favor of a bike path and a high WTP to avoid installing a perimeter fence. Surprisingly, respondents were also strongly against vending machines. These results provide evidence for the Arboretum leadership to make informed funding and infrastructure decisions most harmonious with public values.
    Keywords: Arboretum, Botanical Gardens, Willingness to Pay, Environmental Economics and Policy,
    Date: 2015
  14. By: Dobbs, Leah ; Jensen, Kimberly ; Leffew, Megan ; English, Burton ; Lambert, Dayton ; Clark, Christopher
    Abstract: This study examines willingness to pay among consumers in five metropolitan areas in Tennessee for steaks and ground beef produced in Tennessee. Consumers are willing to pay a positive premium for Tennessee beef. The choice of shopping outlets for Tennessee beef is also examined. Demographics, prior shopping patterns, and product preferences influence shopping outlet choices.
    Keywords: Willingness to pay, Local, Beef, Shopping outlets, Survey, Agribusiness, Consumer/Household Economics, Farm Management, Q130, D120,
    Date: 2015–01–15
  15. By: Chen, Xuqi ; Gao, Zhifeng ; House, Lisa
    Abstract: In the past decades, demand for niche products (including organic, natural, and locally produce) has grown dramatically. Previous literature has shown that people bought organic and natural fresh produce because they perceived the products to be healthier and more nutritious. For locally produced products, supporting the local economy was also suggested as one of major reasons for purchasing besides the health benefits and freshness. When comparing the preferences of organic locally produced, and naturally grown, it has been exhibited that states (regions) have an influential impact. In this study, we used online surveys to determine the consumers’ knowledge and perception for niche fresh produce, as well as used open-ended contingent valuation to elicit consumer willingness to pay (WTP). From preliminary results of the national survey, it is indicated that although consumers stated that they favored locally produced and naturally grown products over organic ones, their WTP for organic products was still the highest in general. However, when delving into the case of each state, we were convinced that the preference was not homogeneous. This research is going to demonstrate such disparity in different regions and analyze the reasons behind it.
    Keywords: WTP, preference, disparity, locally produce, organic, region., Agribusiness, Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2015–01–15
  16. By: Scaringelli, Myriam Anna ; Giannoccaro, Giacomo ; Prosperi, Maurizio ; Lopolito, Antonio
    Abstract: In recent decades, one of the problems affecting the environment has been the increased use of plastics in agriculture, often illegally performed by open burning in the fields. The adoption of biodegradable products may represent an important opportunity to increase the environmental sustainability of agricultural sector. The goal of this study is to estimate the farmers’ willingness to pay for innovative biodegradable mulching films. A sample of 120 horticultural farms in the Province of Foggia (Apulia Region, Italy) has been surveyed by a questionnaire. The survey results demonstrate a substantial interest by farmers towards products made with innovative materials.
    Keywords: Biodegradable mulching film, willingness to pay, innovations, farmers stated preferences, Consumer/Household Economics,
    Date: 2014–08
  17. By: Ferrière, Nathalie ; Suwa-Eisenmann, Akiko
    Abstract: This paper analyses empirically the impact of food aid on production, sales and purchases. We estimate the discrete choice and the level choice using the Ethiopian rural household survey. The panel dimension allows us to deal with food aid selection. Running a panel Tobit with sample selection and endogeneity we find that food aid reduces the probability of being a producer. It increases the one of being a seller and decreases the one of being a buyer only after 2004 that corresponds to changes in the criteria of food aid allocation. Food aid does not affect the level choice.
    Keywords: Food aid, production, sales, purchases, Ethiopia, Agricultural and Food Policy, International Relations/Trade,
    Date: 2014–08
  18. By: Boeri, Marco ; Brown, Hannah ; Longo, Alberto
    Abstract: The recent ‘horse meat scandal’ in Europe has sparked huge concerns among consumers, as horse meat was found in beef lasagne ready to be consumed. This study investigates consumers’ preferences towards characteristics of ready to heat lasagne, including origin of the meat, whether the meat is tested as beef, safety of the lasagne, and nutritional value, using Discrete Choice Experiments in six EU. Our sample of 4,598 consumers makes this the largest cross sectional study of this kind. The results of this study present evidence that consumers in Europe are concerned about the authenticity and origin of the meat.
    Keywords: Random Utility Maximisation, food safety, ready meals, horse meat scandal, consumer’s preferences, Food Consumption/Nutrition/Food Safety,
    Date: 2014–08
  19. By: Robinson, Derrick ; Hite, Diane
    Abstract: This is a preliminary, working paper. Please address all shortcoming and comments to Derrick Robinson. Thank you!
    Keywords: Consumer demand, food safety, Gulf Coast, seafood, perception, preference, random utility model, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, D120, D180,
    Date: 2015

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