nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2016‒03‒17
four papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Hunting value of wild boar in Sweden: A choice experiment By Engelmann, Marc; Lagerkvist, Carl-Johan; Gren, Ing-Marie
  2. Valuing in-vehicle comfort and crowding reduction in public transport By Björklund, Gunilla; Swärdh, Jan-Erik
  3. Public preferences for the design of biodiversity offset policies in Australia By Rogers, Abbie A.; Burton, Michael P.
  4. A behavioral study of “noise” in coordination games By Michael Mäs; Heinrich H. Nax

  1. By: Engelmann, Marc (Department of Economics, Swedish University of Agricultural Sciences); Lagerkvist, Carl-Johan (Department of Economics, Swedish University of Agricultural Sciences); Gren, Ing-Marie (Department of Economics, Swedish University of Agricultural Sciences)
    Abstract: The purpose of this study is to estimate hunters’ valuation of wild boar in Sweden. However, hunters have access to hunt, not only wild boar, but also other game such as moose and roe deer. Therefore, wild boar is regarded as an attribute of hunting together with other game, which includes moose, roe deer, and small game. A discrete choice experiment framework is used to elicit hunters’ trade-offs between wild boar, moose, roe deer and small game. Estimates with a mixed logit model showed that the average annual willingness to pay (WTP) for a wild boar is approximately SEK 330/animal, which corresponds to 1/8 of the average WTP for a moose and ¼ of that for a roe deer. The range in WTP is determined by the activity of the hunters, as measured by number of hunting days per year, the least active gives the lowest WTP (SEK 113) and the most active the highest WTP (SEK 529). This can be a result of the specific challenges when hunting the wild boars, which are active in night time and equipped with excellent hearing and smell. Hunters that are farmers also give a relatively low WTP (SEK 134), which can be explained by the damages on crops created by the animal.
    Keywords: wild boar; hunting value; Sweden; game as attributes; choice experiment
    JEL: Q29 Q57
    Date: 2016–02–21
  2. By: Björklund, Gunilla (VTI); Swärdh, Jan-Erik (VTI)
    Abstract: The purpose of the present study is to estimate the willingness to pay (WTP) for comfort, i.e. to get a seat, and crowding reduction on board local public transport in Sweden, including the modes metro, tram, commuter train, and local bus. We use data from a stated-preference study conducted in the three largest urban areas of Sweden. Respondents were recruited both during a trip and from a web panel. The stated-preference questions comprised four attributes: price, travel time, sitting or standing during the trip, and crowding level. Crowding level was illustrated by pictures showing different numbers of standing travelers per square meter. The estimated results suggest a WTP for seating of SEK 41 to 61 (SEK 10 EUR 1) per hour depending on the crowding level. A reduction to no standing crowding from 4 and 8 standing passengers per square meter is valued SEK 6-7 and 20-40 respectively, depending on the seating or standing condition. If we instead interpret our estimated results as multipliers of the value of travel time savings, the worst travel condition in our study, i.e. standing in a crowding of 8 standing passengers per square meter, has a multiplier of about 2.9. All in all, our results seem plausible as they are relatively close to comparable estimated results from earlier studies that have valuated comfort and crowding reductions. Finally, sensitivity analysis also shows that the results seem to be both robust and in line with knowledge about the value of travel time savings.
    Keywords: Public transport; Comfort; Crowding; Willingness to pay; Value of travel time savings
    JEL: C25 R41
    Date: 2016–02–22
  3. By: Rogers, Abbie A.; Burton, Michael P.
    Abstract: Understanding the social acceptability of biodiversity offsets is important in order to properly design offset policy. This study used a discrete choice experiment to quantify preferences of the Australian community for a migratory shorebird offset, in the context of an oil and gas development. The attributes in the choice experiment were comprised of several offset policy characteristics, with a view to informing future policy design of the social dimensions related to offset acceptability. We found that the practice of offsetting was accepted by the community as a means to allow economic development. The ability to exchange protection of a species impacted by the development for a more endangered species was a desirable policy characteristic, as was having the offset implemented by a third party or the government, as compared with the company responsible for the development. Direct offset activities were preferred over indirect, and there was a strong aversion to locating the offset at a site other than where the impact occurred. While some policy characteristics were less desirable from a social perspective, it was possible to compensate for these by increasing the amount of biodiversity protected by the offset.
    Keywords: choice experiment, nonmarket valuation, shorebird offset, environmental offset, Environmental Economics and Policy, Q510, Q570, Q580,
    Date: 2016–02–17
  4. By: Michael Mäs; Heinrich H. Nax
    Abstract: ‘Noise’ in this study, in the sense of evolutionary game theory, refers to deviations from prevailing behavioral rules. Analyzing data from a laboratory experiment on coordination in networks, we tested ‘what kind of noise’ is supported by behavioral evidence. This empirical analysis complements a growing theoretical literature on ‘how noise matters’ for equilibrium selection. We find that the vast majority of decisions (96%96%) constitute myopic best responses, but deviations continue to occur with probabilities that are sensitive to their costs, that is, less frequent when implying larger payoff losses relative to the myopic best response. In addition, deviation rates vary with patterns of realized payoffs that are related to trial-and-error behavior. While there is little evidence that deviations are clustered in time or space, there is evidence of individual heterogeneity.
    Keywords: behavioral game theory; discrete choice; evolution; learning; logit response; stochastic stability; trial-and-error
    JEL: C73 C91 C92
    Date: 2016–03

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