nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2018‒09‒24
twenty-two papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre
  1. Farmers’ preference and willingness to pay for Ecosystem Services from Small-scale Agricultural Management Intervention Options in Burkina Faso: A Discrete Choice Experiment Approach By Houessionon, P.
  2. The Role of Trust in Explaining Food Choice: Combining Choice Experiments and Attribute Best Worst Scaling By Yeh, C.-H.; Hartmann, M.; Langen, N.
  3. Spatial Discrete Choice Models: A Review Focused on Specification, Estimation and Health Economics applications By Giuseppe Arbia; Anna Gloria Billé
  4. Market Responses to Information Conveying Mixed Messages – Prediction of Informational Impacts on Consumer Willingness to Pay for Eggs from Welfare Enhanced Cage Systems using Discrete Choice Experiments By Cao, Ying; Chen, Chen; Cranfield, John; Widowski, Tina
  5. An Opportunity Overlooked: A Choice Experiment to Estimate Consumers’ Willingness to Pay for Locally Grown Fruits in Cusco, Peru By Donovan, Jason; Blare, Trent D.; Del Pozo, Cesar
  6. Information, retail channel and consumers WTP for food safety in Argentina. By Berges, M.; Casellas, K.; Echeverria, L.; Urquiza Jozami, G.
  7. Do Visual Representations Influence Survey Responses? Evidence from a Choice Experiment on Landscape Attributes of Green Infrastructure By Shr, Yau-Huo; Ready, Richard C.; Orland, Brian; Echols, Stuart
  8. Valuation Biases Caused by Public Distrust: Identification and Calibration with Contingent Valuation Studies of Two Air Quality Improvement Programs in China By Hua Wang; Jie He; Desheng Huang
  9. Consumer Preferences for Country of Origin Labelling on Dairy Products By Norris, A.; Cranfield, J.
  10. Individual housing choices and aggregate housing prices: discrete choice models revisited with matching models By Odran Bonnet
  11. Linking Agricultural Land Conservation and Provision of Ecosystem Services: A Choice Experiment Approach By Wang, Haoluan; Swallow, Brent M.
  12. Willingness to Pay for Strawberries Grown on Biodegradable Mulches By Chen, Kuan-Ju; Marsh, Thomas L.; Tozer, Peter
  13. Effect of price on consumers’ willingness to pay: is it from quality perception or price anchoring? By Yu, Luqing; Gao, Zhifeng; Sims, Charles; Guan, Zhengfei
  14. Willingness to Pay for Tomato Price Insurance in Beijing-Tianjin-Hebei By Guan, Xue; Ahrendsen, Bruce L.; Liu, Yumei
  15. Gender and Willingness to Pay for Insured Loans: Empirical Evidence from Ghana By Mishra, Khushbu; Gallenstein, Richard; Miranda, Mario J.; Sam, Abdoul G.
  16. Consumer Preferences for E-Cigarette Attributes By Zarebanadkoki, Samane; Zheng, Yuqing; Buck, Steven C.
  17. A Comparison of Parameter Estimation of Logistic Regression model by Maximum Likelihood, Ridge Regression, Markov Chain Monte Carlo Methods By Autcha Araveeporn
  18. Chinese Preference for Online Grocery Shopping: Shopping for Convenience, Quality or Price? By Chen, Junhong; Zheng, Qiujie; Zhang, Robin; Wang, Hong Holly
  19. Do Forest Property Characteristics Reveal Landowners’ Willingness to Accept Payment for Ecosystem Services Contracts? By Kang, Moon Jeong; Siry, Jacek; Colson, Gregory J.; Ferreira, Susana
  20. Laos consumer perceptions of rice quality and safety: Insights from a conjoint analysis By Chialue, L.; Moustier, P.
  21. Do farmers economically value seeds of different quality differently? Evidence from willingness to pay studies in Tanzania and Ghana By Maredia, Mywish K.; Shupp, Robert S.; Opoku, Edward; Mishili, Fulgence J.; Reyes, Byron A.; Kusolwa, Paul; Kusi, Francis
  22. Effects of Information Framing on Smallholder Irrigation Farmers’ Willingness to Pay for Groundwater Protection: The Case of Vea Irrigation Scheme in Ghana By Alhassan, Mustapha; Gustafson, Christopher R.; Schoengold, Karina
  1. By: Houessionon, P.
    Abstract: The main purpose of this paper is to estimate farmers’ preferences and their willingness to pay (WTP) for ecosystem services derived from four agricultural water management (AWM) and resource recovery and reuse (RRR) intervention options in Burkina Faso, using choice experiment (CE). These include; small water infrastructures, drip irrigation, organic matter recovery from waste, and treated wastewater. The design decisions relating to attribute selection, the level of attributes, alternatives and choice tasks were guided by literature, field visit, focus group discussions, experts input and an iterative process of STATA to generate an orthogonal main effects CE design. The data used was generated from a random sample of 300 farm households in the Dano and Ouagadougou municipalities in Burkina Faso. Results from conditional logit, latent class logit and mixt logit models show that farmers have positive and significant preferences for drip irrigation, treated waste water and organic matter. However, they are WTP on average, more for drip irrigation and organic matter for agricultural sustainability. In line with economic theory, the cost of an intervention reduces demand for a given intervention. These findings can provide policy makers with evidence for agricultural policy design to build farmers’ resilience in the Sahel.
    Keywords: Agricultural and Food Policy
    Date: 2018–07
    URL: http://d.repec.org/n?u=RePEc:ags:iaae18:275873&r=dcm
  2. By: Yeh, C.-H.; Hartmann, M.; Langen, N.
    Abstract: This paper presents empirical findings from a combination of two elicitation techniques: discrete choice experiment (DCE) and best-worst scaling (BWS) to provide information about the role of consumers’ trust in food choice decisions in the case of credence attributes. The analysis is carried out at the example of Taiwan and focuses on sweet red peppers. DCE data is examined using latent class analysis to investigate the importance and the utility different consumer segments attach to process attributes and their respective levels: production method, country of origin and chemical residual testing. The relevance of attitudinal and trust based items is analyzed by BWS using hierarchical Bayesian mixed logit model. Applying multinomial logit model participant’s latent class membership (obtained from DCE data) is regressed on the identified attitudinal and trust components considering, in addition, demographic information. The analysis is based on a sample of 459 Taiwanese consumers. Results of the DCE latent class analysis for the product attributes show that four distinct segments can be distinguished. Linking the DCE with the attitudinal dimensions reveals that consumers’ attitude and trust significantly explains class membership. Hence, consumers’ food purchase behavior is determined by consumers’ trust in products from respective counties products, labels, and institutions.
    Keywords: Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety
    Date: 2018–07
    URL: http://d.repec.org/n?u=RePEc:ags:iaae18:275980&r=dcm
  3. By: Giuseppe Arbia (Catholic University of the Sacred Heart, Rome, Department of Statistical Science); Anna Gloria Billé (Free University of Bozen-Bolzano, Faculty of Economics and Management)
    Abstract: Modeling individual choices is one of the main aim in microeconometrics. Discrete choice models have been widely used to describe economic agents' utility functions, and most of them play a paramount role in applied health economics. On the other hand, spatial econometrics collects a series of econometric tools which are particularly useful when we deal with spatially-distributed data sets. It has been demonstrated that accounting for spatial dependence can avoid inconsistency problems of the commonly used estimators. However, the complex structure of spatial dependence in most of the nonlinear models still precludes a large diffusion of these spatial techniques. The purpose of this paper is then twofold. The former is to review the main methodological problems and their different solutions in spatial discrete choice modeling as they have appeared in the econometric literature. The latter is to review their applications to health issues, especially in the last few years, by highlighting at least two main reasons why spatial discrete neighboring effects should be considered and then suggesting possible future lines of the development of this emerging field.
    Keywords: Discrete Choice Modeling, Health Economics, Spatial Econometrics
    JEL: C31 C35 C51 I10
    Date: 2018–09
    URL: http://d.repec.org/n?u=RePEc:bzn:wpaper:bemps54&r=dcm
  4. By: Cao, Ying; Chen, Chen; Cranfield, John; Widowski, Tina
    Keywords: Marketing, Institutional and Behavioral Economics, Agribusiness
    Date: 2017–07–03
    URL: http://d.repec.org/n?u=RePEc:ags:aaea17:258545&r=dcm
  5. By: Donovan, Jason; Blare, Trent D.; Del Pozo, Cesar
    Keywords: Consumer/Household Economics, Institutional and Behavioral Economics, Community/Rural/Urban Development
    Date: 2017–06–30
    URL: http://d.repec.org/n?u=RePEc:ags:aaea17:258228&r=dcm
  6. By: Berges, M.; Casellas, K.; Echeverria, L.; Urquiza Jozami, G.
    Abstract: In Argentina, the incidence of hemolytic uremic syndrome (HUS) is high, with approximately 420 new cases observed each year. A strain called VTEC 0157 of Escherichia coli (E. coli) was identified as the primary cause of HUS. The retail sale of beef in Argentina is marketed mainly without labels, brands or certifications, in butchers shops that represent 75% of the market share. In the context of the Healthy Butchers program, bacteriological evaluations at butcher shops detected cross contamination of food with pathogens in beef retail environment. In this paper, we measure consumer preferences for selected food safety attributes in beef and butcher shops, taking their information and knowledge about safety into account. We use a discrete choice experiment to assess consumers WTP using primary data from Buenos Aires, Argentina. Results suggest that consumers’ utility increases when there is a cashier at the butcher shop, the butcher wears gloves and uses recommended tables to cut meat, and beef products have a properly lay out at meat display fridge at consumers’ sight. Consumers’ knowledge and information about foodborne diseases and beef contamination risks increase the WTP for safety attributes at butcher shops. This effect is especially stronger for the last two mentioned attributes, which require a more detailed observation from consumers. Implications for food retail managers and policy-makers are discussed.
    Keywords: Food Consumption/Nutrition/Food Safety, International Development
    Date: 2018–07
    URL: http://d.repec.org/n?u=RePEc:ags:iaae18:275872&r=dcm
  7. By: Shr, Yau-Huo; Ready, Richard C.; Orland, Brian; Echols, Stuart
    Keywords: Environmental Economics and Policy, Public Economics, Resource/Energy Economics and Policy
    Date: 2017–07–03
    URL: http://d.repec.org/n?u=RePEc:ags:aaea17:258397&r=dcm
  8. By: Hua Wang (School of Environment and Natural Resources, Renmin University of China, Beijing, China); Jie He (Département d'économique, École de gestion, Université de Sherbrooke); Desheng Huang (Policy Research Center for Environment and Economy, and Ministry of Ecology and Environment, China)
    Abstract: Contingent valuation (CV) studies often adopt public programs in the scenario designs in order to increase credibility and to ensure incentive compatibility. However, such scenario designs can introduce biases in willingness-to-pay (WTP) estimations due to the potential distrusts of respondents in the governments who are responsible for implementing the public programs. In this study, a joint selection modeling strategy, which accommodates both valuation protests and WTP adjustments, is developed for identification and calibration of the potential biases in WTP estimations caused by the public distrust in government. The joint selection model of WTP with public distrust in government is applied to two CV studies conducted in China on air quality improvements. Both channels through which public distrust in government can affect WTP estimation, valuation protest and WTP adjustment, are empirically identified, and the potential biases in WTP estimation caused by the public distrust in government can be as high as 20%.
    Keywords: public distrust, contingent valuation, protest, selection bias, WTP determination.
    Date: 2018–09
    URL: http://d.repec.org/n?u=RePEc:shr:wpaper:18-05&r=dcm
  9. By: Norris, A.; Cranfield, J.
    Abstract: CETA means that the Canadian marketplace for dairy products will begin to see an increased presence of dairy products imported from the EU. Activity related to TPP and NAFTA also means there is potential for increased imports of dairy products from the TPP member states and NAFTA partners. In light of this, it is important to understand how Canadian consumers will respond to the increased presence of dairy products. We develop a discrete choice experiment to explore what trade-offs Canadian consumers make across different dairy product attributes. These attributes include price, country-of-origin (COO), the method of production (i.e., conventional versus organic), nature of the brand (national, regional, or store), and traceability. We apply the analysis to two types of cheese (Gouda and cheddar), ice cream, and yogurt. Results indicate there are statistically significant premiums and discounts associated with COO, and which vary with the dairy product. What is more, we find large premiums for the presence of traceability programs for all four of the respective dairy products, suggesting that the absence of assurances related to traceability may mute actual market penetration arising from increased access to the Canadian dairy market.
    Keywords: Farm Management, International Development, Livestock Production/Industries
    Date: 2018–07
    URL: http://d.repec.org/n?u=RePEc:ags:iaae18:275948&r=dcm
  10. By: Odran Bonnet (Sciences Po LIEPP)
    Abstract: Le premier chapitre, écrit conjointement avec Alfred Galichon, Keith O'Hara et Matthew Shum, montre l'équivalence entre les modèles de choix discrets et les modèles d'appariements. Cette équivalence permet l'estimation efficace, par des algorithmes d'appariement, de modèles qui étaient jusqu'à présent réputés comme difficile à estimer dans la littérature. Le deuxième chapitre, écrit conjointement avec Mathilde Poulhès, s'appuie sur les résultats du premier pour estimer le consentement marginal à payer des agents pour différentes caractéristiques du logement et du quartier à Paris. Il introduit une nouvelle procédure d'estimation basée sur le modèle de pures caractéristiques. Grâce à un riche jeu de données sur les achats de logements à Paris, nous montrons que le revenu moyen du voisinage et le niveau de criminalité sont de puissants déterminants du choix du quartier pour tous les types d'acheteurs, que l'accessibilité à l'emploi est également un facteur déterminant pour les ménages comptant plus d'une personne, et que la qualité de l'école du secteur joue un rôle primordial pour les ménages avec enfants. Le troisième chapitre, écrit conjointement avec Guillaume Chapelle, Alain Trannoy et Etienne Wasmer, montre que la croissance récente du ratio patrimoine sur revenu est due uniquement à l'augmentation du prix des logements, et plus précisément à l'augmentation du prix d'un facteur fixe de production: la terre. Nous montrons ensuite qu'un système de taxation du patrimoine doit taxer le facteur fixe qu'est la terre à des fins de redistribution et non le capital productif pour ne pas décourager l'investissement.
    Keywords: Discrete choices, Multinomial model, Hedonic Housing; Choix discrets, Modèles multinomiaux, Hédonique, Logement
    Date: 2018–06
    URL: http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/3bhpicpe2q8a090eu5p3dvakb6&r=dcm
  11. By: Wang, Haoluan; Swallow, Brent M.
    Keywords: Environmental Economics and Policy, Land Economics/Use, Resource/Energy Economics and Policy
    Date: 2017–07–03
    URL: http://d.repec.org/n?u=RePEc:ags:aaea17:258537&r=dcm
  12. By: Chen, Kuan-Ju; Marsh, Thomas L.; Tozer, Peter
    Keywords: Environmental Economics and Policy, Marketing, Institutional and Behavioral Economics
    Date: 2017–07–03
    URL: http://d.repec.org/n?u=RePEc:ags:aaea17:258329&r=dcm
  13. By: Yu, Luqing; Gao, Zhifeng; Sims, Charles; Guan, Zhengfei
    Keywords: Marketing, Consumer/Household Economics, Agribusiness
    Date: 2017–07–03
    URL: http://d.repec.org/n?u=RePEc:ags:aaea17:258424&r=dcm
  14. By: Guan, Xue; Ahrendsen, Bruce L.; Liu, Yumei
    Keywords: Risk and Uncertainty, Agricultural Finance, Demand and Price Analysis
    Date: 2017–06–30
    URL: http://d.repec.org/n?u=RePEc:ags:aaea17:258260&r=dcm
  15. By: Mishra, Khushbu; Gallenstein, Richard; Miranda, Mario J.; Sam, Abdoul G.
    Keywords: Environmental Economics and Policy, Risk and Uncertainty, International Development
    Date: 2017–07–03
    URL: http://d.repec.org/n?u=RePEc:ags:aaea17:258323&r=dcm
  16. By: Zarebanadkoki, Samane; Zheng, Yuqing; Buck, Steven C.
    Keywords: Demand and Price Analysis, Industrial Organization, Consumer/Household Economics
    Date: 2017–07–03
    URL: http://d.repec.org/n?u=RePEc:ags:aaea17:258346&r=dcm
  17. By: Autcha Araveeporn (King Mongkut?s Institute of Technology Ladkrabang)
    Abstract: The goal of this research is to estimate the parameter of logistic regression model. The coefficient parameter is evaluated by maximum likelihood, ridge regression, markov chain monte carlo methods. The logistic regression is considered the correlation between binary dependent variable and 2, 3, and 4 independent variables which is generated from normal distribution, contaminated normal distribution, and t distribution. The maximum likelihood estimator is estimated by differential the log likelihood function with respect to the coefficients. Ridge regression is to choose the unknown ridge parameter by cross-validation, so ridge estimator is evaluated on a form of maximum likelihood method by adding ridge parameter. The markov chain monte carlo estimator can approximate from Gibbs sampling algorithm by the posterior distribution based on a probability distribution and prior probability distribution. The performance of these method is compare by percentage of predicted accuracy value. The results are found that ridge regression are satisfied when the independent variables are simulated from normal distribution, and the maximum likelihood outperforms on the other distributions.
    Keywords: Maximum Likelihood, Ridge Regression, Markov Chain Monte Carlo
    JEL: C13 C15
    Date: 2018–06
    URL: http://d.repec.org/n?u=RePEc:sek:iacpro:6409196&r=dcm
  18. By: Chen, Junhong; Zheng, Qiujie; Zhang, Robin; Wang, Hong Holly
    Keywords: Marketing, Agribusiness, Food Consumption/Nutrition/Food Safety
    Date: 2017–06–30
    URL: http://d.repec.org/n?u=RePEc:ags:aaea17:258254&r=dcm
  19. By: Kang, Moon Jeong; Siry, Jacek; Colson, Gregory J.; Ferreira, Susana
    Keywords: Environmental Economics and Policy, Resource/Energy Economics and Policy, Land Economics/Use
    Date: 2017–07–03
    URL: http://d.repec.org/n?u=RePEc:ags:aaea17:258475&r=dcm
  20. By: Chialue, L.; Moustier, P.
    Abstract: To assess the main factors influencing Lao urban consumers perception of rice quality and safety, a conjoint analysis approach was conducted based on surveys on 300 consumers in 2010. Retailing points and organic certification have a major influence. The preferred retailing point for these attributes is the wet market, followed by minimarts then mobile vendors. Improving organic certification systems and maintaining traditional markets alongside minimarts are recommended. Key words: Consumer, food quality, safety, retail outlet, conjoint analysis
    Keywords: Agricultural and Food Policy, Crop Production/Industries, International Relations/Trade
    Date: 2018–07
    URL: http://d.repec.org/n?u=RePEc:ags:iaae18:276030&r=dcm
  21. By: Maredia, Mywish K.; Shupp, Robert S.; Opoku, Edward; Mishili, Fulgence J.; Reyes, Byron A.; Kusolwa, Paul; Kusi, Francis
    Abstract: DRAFT version, do not cite. See FSID Working Paper at https://ageconsearch.umn.edu/record/2709 88.
    Keywords: International Development, Crop Production/Industries, Demand and Price Analysis
    Date: 2017–07–03
    URL: http://d.repec.org/n?u=RePEc:ags:aaea17:258392&r=dcm
  22. By: Alhassan, Mustapha; Gustafson, Christopher R.; Schoengold, Karina
    Keywords: Environmental Economics and Policy, Resource/Energy Economics and Policy, Land Economics/Use
    Date: 2017–07–03
    URL: http://d.repec.org/n?u=RePEc:ags:aaea17:258432&r=dcm
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