nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2017‒01‒01
four papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Labels as nudges? An experimental study of car eco-labels By Cristiano Codagnone; Giuseppe Alessandro Veltri; Francesco Bogliacino; Francisco Lupiáñez-Villanueva; George Gaskell; Andriy Ivchenko; Pietro Ortoleva; Francesco Mureddu
  2. Multiobjective optimization model for pricing and seat allocation problem in non profit performing arts organization By Andrea Baldin; Trine Bille; Andrea Ellero; Daniela Favaretto
  3. Ageing by feet? Regional migration, neighbourhood choice and local demographic change in German cities By Neumann, Uwe
  4. Willingness to Pay for Low Water Footprint Food Choices During Drought By Villas-Boas, Sofia B; Taylor, Rebecca; Krovetz, Hannah

  1. By: Cristiano Codagnone; Giuseppe Alessandro Veltri; Francesco Bogliacino; Francisco Lupiáñez-Villanueva; George Gaskell; Andriy Ivchenko; Pietro Ortoleva; Francesco Mureddu
    Abstract: This article presents the results of a laboratory experiment and an online multi-country experiment testing the effect of motor vehicle eco-labels on consumers. The laboratory study featured a discrete choice task and questions on comprehension, while the ten countries online experiment included measures of willingness to pay and comprehension. Labels focusing on fuel economy or running costs are better understood, and influence choice about money-related eco-friendly behaviour. We suggest that this effect comes through mental accounting of fuel economy. In the absence of a cost saving frame, we do not find a similar effect of information on CO2 emissions and eco-friendliness. Labels do not perform as well as promotional materials. By virtue of being embedded into a setting designed to capture the attention, the latter are more effective. We found also that large and expensive cars tend to be undervalued once fuel economy is highlighted.
    Keywords: Eco-label; Nudge; Willingness to pay; Fuel economy; Experiments; CO2 emission
    JEL: C9 D3 Q56 Q58
    Date: 2016–12
  2. By: Andrea Baldin (Dept. of Management, Università Ca' Foscari Venice); Trine Bille (Dept. of Management, Politics and Philosophy, Copenhagen Business School); Andrea Ellero (Dept. of Management, Università Ca' Foscari Venice); Daniela Favaretto (Dept. of Management, Università Ca' Foscari Venice)
    Abstract: The implementation of Revenue Management (RM) techniques in non profit performing arts organizations presents new challenges compared to other sectors, such as transportion or hospitality industries, in which these techniques are more consolidated. Indeed, performing arts organizations are characterized by a multi-objective function that is not solely limited to revenue. On the one hand, theatres aim to increase revenue from box office as a consequence of the systematic reduction of public funds; on the other hand they pursue the objective to increase its attendance. A common practice by theatres is to incentive the customers to discriminate among themselves according to their reservation price, offering a schedule of different prices corresponding to different seats in the venue. In this context, price and allocation of the theatre seating area are decision variables that allow theatre managers to manage these two conflicting goals pursued. In this paper we introduce a multi-objective optimization model that jointly considers pricing and seat allocation. The framework proposed integrates a choice model estimated by multinomial logit model and the demand forecast, taking into account the impact of heterogeneity among customer categories in both choice and demand. The proposed model is validated with booking data referring to the Royal Danish Theatre during the period 2010-2015.
    Keywords: Multi-objective optimization; Pricing; Seat allocation; Multinomial logit model; Theatre demand
    JEL: M40
    Date: 2016–12
  3. By: Neumann, Uwe
    Abstract: In countries with an ageing population, regional migration may accentuate local progress in demographic change. This paper investigates whether and to what extent diversity in ageing among urban neighbourhoods in Germany was reinforced by regional migration during the past two decades. The old-industrialised Ruhr in North Rhine- Westphalia serves as a case study representing an advanced regional stage in ageing. The analysis proceeds in two steps. First, variation in the pace of neighbourhood-level demographic change over the period 1998-2008 is examined using KOSTAT, an annual time series compiled by municipal statistical offices. Second, a discrete choice model of household location preferences is applied to study the underlying demographic sorting process. The second step draws on microdata from a representative population survey carried out in 2010. During the 1990s and 2000s, in contrast to earlier decades, age differentials in location preferences became more profound and city centres became more popular as residential location. Rapid "ageing by feet" now affects neighbourhoods, where the influx is low, particularly low-density housing areas of the outer urban zone. Neighbourhood-level demographic sorting proceeds at a somewhat slower pace in the Ruhr than in the more prosperous cities of the nearby Rhineland (Bonn, Cologne and Dusseldorf). In the process of regional adaptation to demographic change, greater diversity in the age structure of neighbourhood populations may turn out to be an advantage in the long-run competition over mobile households.
    Keywords: ageing,segregation,neighbourhood sorting,discrete choice
    JEL: C21 C25 O18 R23
    Date: 2016
  4. By: Villas-Boas, Sofia B; Taylor, Rebecca; Krovetz, Hannah
    Keywords: Social and Behavioral Sciences
    Date: 2016–12–21

This nep-dcm issue is ©2017 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.