nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2018‒10‒29
seven papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Demand Models for Differentiated Goods with Complementarity and Substitutability By Mogens Fosgerau; André de Palma; Julien Monardo
  2. Unobserved Heterogeneity in Structural Behavioral Models Using Experimental Data By Giovanni Ponti; Claudio Rossetti
  3. Willingness to Pay for Local, Value-Added Goods By Spalding, Ashley; Kiesel, Kristin
  4. Estimating Willingness-to-Pay for Senior-Friendly Foods using a Double-Blinded Dichotomous Choice Approach in South Korea By Kim, Sanghyo
  5. The Difficulties in Measuring Individual Utilities of Product Attributes: A Choice Based Experiment By Oliver Meixner; Rainer Haas
  6. Consumers' Willingness to Pay for Climate-Friendly Food in European Countries By Yvonne Feucht; Katrin Zander

  1. By: Mogens Fosgerau (Department of Economics, University of Copenhagen); André de Palma (CREST, ENS Paris-Saclay, University Paris-Saclay); Julien Monardo (CREST, ENS Paris-Saclay, University Paris-Saclay)
    Abstract: We develop a class of demand models for differentiated products. The new models facilitate the BLP method (Berry et al., 1995) while numerical inversion of the demand system is not required. They can accommodate rich patterns of substitution and complementarity while being easily estimated with standard regression techniques and allowing very large choice sets. We use the new models to describe markets for differentiated products that exhibit segmentation according to several dimensions and illustrate their application by estimating demand for cereals in Chicago.
    Keywords: Demand estimation; Differentiated products; Discrete choice; Generalized entropy; Representative consumer
    JEL: C26 D11 D12 L
    Date: 2018–03–15
  2. By: Giovanni Ponti (Universidad de Alicante, University of Chicago, LUISS Guido Carli Roma); Claudio Rossetti (Università di Napoli Federico II and CSEF)
    Abstract: In this paper we compare a mixed logit model (MLM) and a latent class model (LCM) in the context of behavioral structural estimation using experimental data. By providing an instrument to deal with the intrinsic unobserved heterogeneity that characterizes experimental data, these alternative models have clear advantages compared with a multinomial logit model (MNL) typically used in structural estimation of behavioral models. We carry out our exercise by using experimental data that allows us estimation of distributional parameters related to risk and social preferences. Somehow coherently with the economic theory, the LCM identifies three classes of subjects (risk/ineq. lovers, risk/ineq. neutral, risk/ineq. averse). Moreover, estimates from both MLM and LCM somehow confirm the findings from a MNL model, that under the veil of ignorance (VOI) subjects’ variance aversion mostly reflects risk, rather than distributional concerns. By taking unobserved heterogeneity adequately into account in the estimation of our structural behavioral model, also provides new insights into individual behavior on the interplay between risk and inequality concerns. For example, we find that there is much more variability in individual behavior when subjects face pure inequality than under VOI. Moreover, in the case of pure inequality subjects are also more likely to be inequality lovers than under VOI.
    Keywords: Unobserved heterogeneity, Structural behavioral models, Social preferences, Risk preferences.
    JEL: D86 C25
    Date: 2018–10–18
  3. By: Spalding, Ashley; Kiesel, Kristin
    Keywords: Demand and Price Analysis, Food and Agricultural Marketing, Food and Agricultural Policy Analysis
    Date: 2018–06–20
  4. By: Kim, Sanghyo
    Keywords: Food and Agricultural Marketing, Food Safety and Nutrition, Demand and Price Analysis
    Date: 2018–06–20
  5. By: Oliver Meixner; Rainer Haas
    Keywords: Agribusiness
    Date: 2017–09–01
  6. By: Yvonne Feucht; Katrin Zander
    Keywords: Agribusiness
    Date: 2017–09–01
  7. By: Ireri, Dave Mwagi
    Keywords: Consumer/Household Economics, Resource /Energy Economics and Policy
    Date: 2017–11

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