nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2018‒10‒15
seven papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Restaurants’ Willingness to Pay for Tennessee Certified Beef By McKay, Lettie; DeLong, Karen L.; Jensen, Kimberly L.; Griffith, Andrew P.; Boyer, Christopher N.
  2. Selectivity correction in discrete-continuous models for the willingness to work as crowd-shippers and travel time tolerance By Tho V. Le; Satish V. Ukkusuri
  3. Consumers' Willingness to Pay for Hydroponic Lettuce: A Non-hypothetical Choice Experiment By Gilmour, Daniel N.; Nayga, Rodolfo M.; Bazzani, Claudia; Price, Heather
  4. The Feasibility of a Lionfish Meat Market in the U.S. Virgin Islands: Consumer Willingness to Pay By Simnitt, Skyler; Sweeney Tookes, Jennifer; Larking Sherry; Bennett-Martin, Paulita; Harris, Holden; Mioulis, Natalie; Groenevelt, Katherine; Rudd, Muray; Page, Michael; Boss, Jason; Yandle, Tracy
  5. Distance Metric or Random Coefficients Logit? A Comparison of Product-level Demand Models Using Chinese Instant Noodle Scanner Data By Chen, Yu; Zhen, Chen
  6. The Distribution of Mean Willingness to Pay in Mixed Logit Models: Classical, Bayesian and Resampling Approaches By Ying, Jiahui; Shonkwiler, J. Scott
  7. Who is Prepared to Pay For Sustainable Fish? Evidence from a Transnational Consumer Survey in Europe By Katrin Zander; Yvonne Feucht

  1. By: McKay, Lettie; DeLong, Karen L.; Jensen, Kimberly L.; Griffith, Andrew P.; Boyer, Christopher N.
    Abstract: Tennessee beef producers and consumers have shown interest in a Tennessee Certified Beef (TCB) Program. Restaurants serving local foods may serve as an important outlet for TCB but there is no knowledge on how restaurants perceive TCB and willingness to pay (WTP) for TCB. Therefore, this study examines restaurants’ WTP for TCB ground beef and sirloin steak. A telephone survey of 150 Tennessee restaurants that offer locally sourced foods and beef was conducted in which the primary decision maker was asked contingent valuation questions to determine their WTP for TCB. A probit model was used to determine the factors affecting restaurants’ decision to purchase TCB. Results show that the TCB price had a significant impact on restaurants’ decision to adopt TCB. Preliminary results indicate if restaurants were already sourcing beef directly from a producer, selling local foods, and offering beef with no hormones added, they were more likely to indicate they would purchase TCB ground beef. Restaurants were more likely to indicate they would purchase TCB sirloin steak if they already offered beef with no antibiotics administered, natural beef, local beef, and believed offering TCB would make the restaurant more profitable. This research provides recommendations on the premium producers could receive for a TCB product purchased by restaurants as well as the business attributes of restaurants interested in providing such a product.
    Keywords: Demand and Price Analysis
    Date: 2018–01–16
  2. By: Tho V. Le; Satish V. Ukkusuri
    Abstract: The objective of this study is to understand the different behavioral considerations that govern the choice of people to engage in a crowd-shipping market. Using novel data collected by the researchers in the US, we develop discrete-continuous models. A binary logit model has been used to estimate crowd-shippers' willingness to work, and an ordinary least-square regression model has been employed to calculate crowd-shippers' maximum tolerance for shipping and delivery times. A selectivity-bias term has been included in the model to correct for the conditional relationships of the crowd-shipper's willingness to work and their maximum travel time tolerance. The results show socio-demographic characteristics (e.g. age, gender, race, income, and education level), transporting freight experience, and number of social media usages significant influence the decision to participate in the crowd-shipping market. In addition, crowd-shippers pay expectations were found to be reasonable and concurrent with the literature on value-of-time. Findings from this research are helpful for crowd-shipping companies to identify and attract potential shippers. In addition, an understanding of crowd-shippers - their behaviors, perceptions, demographics, pay expectations, and in which contexts they are willing to divert from their route - are valuable to the development of business strategies such as matching criteria and compensation schemes for driver-partners.
    Date: 2018–10
  3. By: Gilmour, Daniel N.; Nayga, Rodolfo M.; Bazzani, Claudia; Price, Heather
    Keywords: Food Consumption/Nutrition/Food Safety, Marketing
    Date: 2018–01–17
  4. By: Simnitt, Skyler; Sweeney Tookes, Jennifer; Larking Sherry; Bennett-Martin, Paulita; Harris, Holden; Mioulis, Natalie; Groenevelt, Katherine; Rudd, Muray; Page, Michael; Boss, Jason; Yandle, Tracy
    Abstract: Invasive lionfish are destroying Florida’s reefs and despite stakeholders’ best efforts, they have made little progress slowing down the destruction. For nearly a decade researchers and policy makers have encouraged the consumption of lionfish meat as an economically sustainable means of curtailing the fish’s proliferation, yet there is little research assessing the economic feasibility of a new market for lionfish meat. Using survey data collected in the United States Virgin Islands (USVI), researchers estimate consumers’ mean willingness to pay (WTP) using the Turnbull method, additionally they observe how individual preferences and characteristics effect consumer WTP usig a double bounded contingent valuation logit regression. Findings suggest that both locals and tourists are willing to purchase lionfish at prices within the range of other white fish entrées at restaurants in the USVI. These findings provide valuable insight on the demand side of a potential market in the USVI, and are a critical step in assessing the viability of establishing a commercial fishery targeting lionfish in the territory and surrounding region.
    Keywords: Agricultural and Food Policy, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety
    Date: 2018–01–16
  5. By: Chen, Yu; Zhen, Chen
    Keywords: Demand and Price Analysis, Food and Agricultural Marketing, Food and Agricultural Policy Analysis
    Date: 2018–06–20
  6. By: Ying, Jiahui; Shonkwiler, J. Scott
    Keywords: Environmental and Nonmarket Valuation, Research Methods/Econometrics/Stats, Natural Resource Economics
    Date: 2018–06–20
  7. By: Katrin Zander; Yvonne Feucht
    Abstract: Sustainability of increasing relevance also for seafood markets. The aim of this contribution is to analyse consumer preferences and their willingness to pay (WTP) for different sustainability claims. The contingent valuation method was applied to elicit consumers’ WTP in eight European countries. The WTP varies between seven and almost 20%, depending on attribute and country. Three consumer groups become apparent: the largest group without any additional WTP, a smaller group with a moderate additional WTP of plus 17%, and a very small group with an additional WTP of more than 40%. Clear differences between countries regarding preferences for different sustainability attributes, particularly in the segment with highest WTP are obvious.
    Keywords: Agribusiness, Agricultural and Food Policy, Agricultural Finance
    Date: 2018–10–01

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