nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2016‒09‒18
seven papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Consumers’ Preference for Sweet Peppers with Different Process Attributes: A Discrete Choice Experiment in Taiwan By Yeh, Ching-Hua; Hartmann, Monika
  2. Farmers’ Preferences for Supermarket Contracts in Kenya By Ochieng, Dennis O.; Veettil, Prakashan C.; Qaim, Matin
  3. Measures to Promote Green Cars: Evaluation at the car variant level By KITANO Taiju
  4. Willingness to Pay for Clean Air: Evidence from the air purifier markets in China By ITO Koichiro; ZHANG Shuang
  5. Preferences for School Milk - How Juveniles Differ By Christoph-Schulz, Inken; Weible, Daniela; Salamon, Petra
  6. Happiness and victimization in Latin America By Catalina Gómez Toro; Carolina Ortega Londoño; Daniel Gómez Mesa; Lina Cardona Sosa
  7. Efficiency-Morality Trade-Offs in Repugnant Transactions: A Choice Experiment By Julio J. Elias; Nicola Lacetera; Mario Macis

  1. By: Yeh, Ching-Hua; Hartmann, Monika
    Abstract: Based on an online discrete choice experiment (DCE) this study investigates the relative importance of food label information (country of origin, production methods, chemical residue testing (CRT)) and price for Taiwanese consumers’ in their purchase of sweet peppers. Results show that respondents focus mostly on the COO labeling during their sweet-pepper shopping, followed by price. Information concerning CRT results and production methods are of less importance. Our findings also indicate that interaction between attributes matter and that preference for attribute levels differs depending on socioeconomic characteristics.
    Keywords: choice experiment, food safety information, production methods, country of origin, logit models, Agribusiness, Food Consumption/Nutrition/Food Safety, Production Economics,
    Date: 2016–05
  2. By: Ochieng, Dennis O.; Veettil, Prakashan C.; Qaim, Matin
    Abstract: With the modernization of global agri-food systems, the role of contract farming is increasing. This also involves smallholder farmers in developing countries. While previous studies have looked at economic impacts of contract schemes on smallholder farmers, little is known about farmers’ preferences for contracting in general, and for specific contract design attributes in particular. Better understanding farmers’ preferences and constraints is important to make smallholder contract schemes more viable and beneficial. This article builds on a choice experiment to analyze farmers’ preferences and preference heterogeneity for contracts in Kenya. In the study region, supermarkets use contracts to source for fresh vegetables directly from preferred suppliers. However, farmer dropout rates are high. Mixed logit models are estimated to examine farmers’ attitudes towards critical contract design attributes. Having to deliver their harvest to urban supermarkets is costly; hence farmers require a significant output price markup. Farmers also dislike delayed payments that are commonplace in contract schemes. The most problematic contract attribute is related to unpredictable product rejection rates, which substantially add to farmers’ risk. Designing contracts with lower transaction costs, more transparent quality grading, and fairer risk-sharing clauses could enhance smallholder participation in supermarket procurement channels.
    Keywords: supermarkets, contracts, farmers’ preferences, choice experiment, Kenya, Agribusiness, Community/Rural/Urban Development, Industrial Organization, Institutional and Behavioral Economics, International Development, O12, O13, Q12, Q13, Q18,
    Date: 2016–08
  3. By: KITANO Taiju
    Abstract: Automobile firms commonly offer multiple variants for each of their car models. Heterogeneity at the variant level is an important element to be considered when assessing attribute-based policy interventions, such as tax incentives and subsidy for green cars, because of substantial variant-level heterogeneity in the attributes within a model. This paper presents a discrete choice model of product differentiation at the variant level, and estimates the structural parameters of the econometric model using data at different levels of aggregation: model-level sales and variant-level prices and attributes. Using these estimates, this paper examines the policies to promote green cars in Japan.
    Date: 2016–06
  4. By: ITO Koichiro; ZHANG Shuang
    Abstract: We develop a framework to estimate the willingness to pay (WTP) for clean air from defensive investments. Applying this framework to product-by-store level scanner data on air purifier sales in China, we provide among the first revealed preference estimates of WTP for clean air in developing countries. A spatial discontinuity in air pollution created by the Huai River heating policy enables us to analyze household responses to long-run exposure to pollution. Our model allows heterogeneity in preference parameters to investigate potential heterogeneity in WTP among households. We show that our estimates provide important policy implications for optimal environmental regulations.
    Date: 2016–06
  5. By: Christoph-Schulz, Inken; Weible, Daniela; Salamon, Petra
    Abstract: Snacks and lunches offered at school can decisively influence children’s dietary habits. In the light of discussions to establish prevention and intervention programs to abate current trends of rising childhood obesity, children’s preferences for food items with lower calorie content gain on importance. But youths preferences concerning different school milk products are not well-known. Therefore, the objective is to investigate if the milk products offered at school still meet older children’s preferences or if modifications could prove to be useful. Based on outcomes of an online survey covering a choice experiment and conducted among juveniles in Germany the probability that youths benefit from different products as well as varying prices, sugar and fat contents is estimated. Socio-demographics, psycho-metrics and perceived weight status are employed to explain youths choices preferring novel school milk products yet unavailable in German schools. Results of the choice experiment show that youths aged 15-18 are a heterogeneous group. They prefer a wider range of different products including drinking yoghurt as an option as well. Results indicate that nutritional aspects (low sugar/fat content, artificial sweetener) and body image are important for some of them.
    Keywords: school milk, youths, preferences, choice experiment, body image, Agribusiness,
    Date: 2016–05
  6. By: Catalina Gómez Toro; Carolina Ortega Londoño; Daniel Gómez Mesa; Lina Cardona Sosa
    Abstract: In recent decades, studies on economics have identified happiness as a life quality indicator that not only accounts for individuals’ socioeconomic improvement but also accounts for their interactions with institutions and public goods, such as personal safety and protection of life. This study examines the determinants of individual happiness of Latin American citizens by focusing on whether the individual had been a victim of a crime in the last twelve months. To do this, a generalized ordered logit with partial constraints is used to analyze data obtained from the Americas Barometer Survey of 2014. The individual self- reported level of life satisfaction is used to study its relationship with having been a victim of a crime during the previous year. The results suggest the existence of a negative relationship between having been a victim of a crime in the past twelve months and being very satisfied with life.
    Keywords: crime, happiness, life satisfaction, generalized ordered logit
    JEL: I3 K42 D62
    Date: 2016–09–01
  7. By: Julio J. Elias; Nicola Lacetera; Mario Macis
    Abstract: Societies prohibit many transactions considered morally repugnant, although potentially efficiency-enhancing. We conducted an online choice experiment to characterize preferences for the morality and efficiency of payments to kidney donors. Preferences were heterogeneous, ranging from deontological to strongly consequentialist; the median respondent would support payments by a public agency if they increased the annual kidney supply by six percentage points, and private transactions for a thirty percentage-point increase. Fairness concerns drive this difference. Our findings suggest that cost-benefit considerations affect the acceptance of morally controversial transactions, and imply that trial studies of the effects of payments would inform the public debate.
    JEL: C91 D01 D47 D63 D64 I11 K32 Z13
    Date: 2016–09

This nep-dcm issue is ©2016 by Edoardo Marcucci. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.