nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2018‒05‒07
four papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. The Influence of Inter-city Metro System on Regional Integration: Empirical Analysis of Residential Property Transactions in Foshan, China By Yiming He
  2. User preferences for coworking space characteristics By Minou Weijs-Perrée; Jasper Van de Koevering; Rianne Appel-Meulenbroek; Theo Arentze
  3. Reference Dependence and Choice Overload By Deb, Joyee; Zhou, Jidong
  4. Imperfect Information and Participation in Insurance Markets: Evidence from Italy By Santeramo, Fabio Gaetano

  1. By: Yiming He
    Abstract: Inter-city public transit system, like high-speed rail and inter-city railway, continues to promote the development of regional economic integration, however, relatively little is known about the impacts of inter-city metro system on regional integration. Different from western countries, in China, the primary commuting mode is traditionally public transit within urban although there is higher reliance on automobile for commuting in past years. Therefore, citizens’ commute behavior and residential location choice is mainly influenced by traditional public transit system, especially urban mass rail transit. The construction and operation of Guangfo Metro, the first urban metro system that directly connects two cities- Guangzhou and Foshan in China, stimulates the immigration of residents and movement of enterprises from Guangzhou to Foshan during past decade, because of more affordable housing price and improved accessibility in Foshan. At present, Foshan acts as satellite city of Guangzhou economically and socially at a large extend, particularly after the operation of Guangfo metro. Therefore, Guangfo Metro system is a special and good case for observing the influence of inter-city metro system on regional integration, especially its impacts among satellite city in the context of China. The paper investigates the territorial influences of inter-city metro system on residents’ willingness to pay on residential property in Foshan by conducting a panel data analysis on real estate project-based transaction price around existing and proposed Guangfo Metro stations. This study contributes to understand the inter-city metro investment and its impacts on regional integration in metropolitan area in the context of China.
    Keywords: Commute behavior; Inter-city metro system; Regional intgration; Satellite city
    JEL: R3
    Date: 2017–07–01
  2. By: Minou Weijs-Perrée; Jasper Van de Koevering; Rianne Appel-Meulenbroek; Theo Arentze
    Abstract: Over the past decades, the usage of mobile technology increased and the attitude towards work changed, which made it possible to work anywhere at any time. However, workers are still looking for work environments that stimulate the work/life balance, networking and collaboration possibilities. This had led to the growing popularity of coworking spaces.Still little is known about the specific preferences of users of these coworking spaces. The aim of this research is therefore to analyze user preferences for coworking space characteristics.Stated choice data was collected by means of a questionnaire with 9 choice sets that was completed by 219 respondents of 16 coworking spaces in the Netherlands. In addition, respondents were asked about socio-demographic characteristics, work-related characteristics and their motivations to work at a coworking space. A mixed logit model was used to analyze the user preferences.Results provide owners or managers of coworking spaces with more insight about the preferences of users of coworking spaces. They could adapt to these preferences by offering coworking spaces with diverse workspaces, facilities and services.
    Keywords: Coworking spaces; mixed logit model; stated choice method; User Preferences
    JEL: R3
    Date: 2017–07–01
  3. By: Deb, Joyee; Zhou, Jidong
    Abstract: This paper offers an explanation for choice overload based on reference-dependent preferences. Consumers construct an ideal object that combines the best attributes of all objects in their choice set, and use this as a reference point. When the choice set expands, it is more likely to find a better object, but meanwhile the reference point improves, which makes all existing objects appear worse. We characterize when the latter reference-dependence effect dominates such that choice overload arises. We also show that purchase probability can decrease with object complexity, measured by the number of attributes.
    Keywords: choice overload, reference dependence, loss aversion
    JEL: D11 D9 M30
    Date: 2018
  4. By: Santeramo, Fabio Gaetano
    Abstract: Participation in crop insurance programs is lowered by imperfect knowledge resulting in adverse selection and moral hazard problems. We aim at investigating how experience in insurance contracts may influence participation in the Italian crop insurance market. From Italian farm-level data we estimate a dynamic discrete choice model of participation to investigate the role of experience. The methodology, coupled with exploratory analysis of the data, allows one to compare the relevance of different sources of experience in the crop insurance decision making process. We found that experience tend to be a catalyst for insurance participation. Policy implications are discussed: in particular we discuss on the importance of bolstering uptake to exploit the advantages of the inertia and spillover effects that emerge from experience. To the best of our knowledge, the role of experience has been underinvestigated. Our analysis has the specific contribution of modeling the potential role of experience (exploited after buying an insurance contract) on uptake in crop insurance programs.
    Keywords: Asymmetric information; Dynamic model; Familiarity; Imperfect Knowledge; Uptake
    JEL: G22 Q12 Q18
    Date: 2017–11

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