nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2018‒12‒17
five papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Congestion management in protected areas: Accounting for respondents inattention and preference heterogeneity in stated choice data By Thiene, M.; Franceschinis, C.; Scarpa, R.
  2. Consumer choice behavior for cisgenic food: exploring attribute processing strategies and the role of time preference By De Marchi, E.; Cavaliere, A.; Banterle, A.
  3. Preferences for healthy and environmentally sustainable food: Combining induced-value and home-grown experiments By Cerroni, S.; Watson, V.; Macdiarmid, J.
  4. Environmental Inequality and Economic Valuation By Jasper N. Meya
  5. Sequential School Choice with Public and Private Schools By Andersson, Tommy; Dur, Umut; Ertemel, Sinan; Kesten , Onur

  1. By: Thiene, M.; Franceschinis, C.; Scarpa, R.
    Abstract: Congestion levels in protected areas can be predicted by site selection probability models estimated from choice data. There is growing evidence of subjects inattention to attributes in choice experiments. We estimate a Latent Class-Random Parameters model (LC-RPL) that jointly handles inattention and preference heterogeneity. We use data from a choice experiment designed to elicit visitors preferences towards sustainable management of a protected area in the Italian Alps. Results show that the LC-RPL model produces improvements in model fit and reductions in the implied rate of inattention, as compared to traditional approaches. Implications of results for Park management authorities are discussed. Acknowledgement :
    Keywords: Research Methods/ Statistical Methods
    Date: 2018–07
  2. By: De Marchi, E.; Cavaliere, A.; Banterle, A.
    Abstract: This paper aims at exploring consumers choice behavior for cisgenic vs conventional food alternatives focusing on how consumers process product attributes when the choice context involves cisgenic alternatives, and investigates the role of individual time preference in affecting choice behavior. The analysis is based on a Choice Experiment involving Attribute Non-Attendance and time preference is elicited through the Consideration of Future Consequences scale. The main results indicate that more than half of the sample population ignores the technology of production attribute while jointly considering the other product alternatives and stress the importance of time preferences in explaining heterogeneity in choice behavior. Acknowledgement :
    Keywords: Consumer/Household Economics
    Date: 2018–07
  3. By: Cerroni, S.; Watson, V.; Macdiarmid, J.
    Abstract: This paper tests if Second Price Vickrey Auction (SPVA) and Discrete Choice Experiment (DCE) are isomorphic and whether lack of isomorphism is due to value-elicitation, value-formation or both. We conduct an artefactual field experiment that combines induced-value (IV) and home-grown (HG) procedures using SPVA and DCE. IV preferences are elicited for tokens and HG preferences for multi-attribute lasagnes. Attributes are healthiness and environmental sustainability. Our results suggest that HG preferences differ across elicitation methods. This discrepancy is due to value-elicitation and value-formation. DCE is the most demand-revealing approach and provides the highest premiums for healthy and environmentally sustainable lasagnes. Acknowledgement :
    Keywords: Environmental Economics and Policy
    Date: 2018–07
  4. By: Jasper N. Meya (University of Oldenburg, Department of Economics)
    Abstract: I study how the distribution of environmental goods and income affect the economic valuation of local public goods. I find that how environmental inequality affects societal willingness to pay (WTP) for environmental local public goods is determined by their substitutability as well as by how their provision is correlated with income. Specifically, environmental inequality decreases societal (WTP) for substitutes, but this effect is reversed if environmental goods are complements or distributed strongly in favour of richer households. Moreover, I show that sorting of richer households into places where environmental good endowment is high increases (decreases) societal WTP if and only if it is a substitute for (complement to) consumption goods. I propose novel adjustment factors for structural benefit transfer to control for differences in the spatial distribution of environmental local public goods. Using forest preservation in Poland as an empirical example, I find that societal WTP is up to 4 percent higher for equal access to forests and up to 8 percent higher for an equal distribution of both income and access to forests.
    Keywords: Inequality, environmental valuation, WTP, local public good, spatial distribution, benefit transfer, forest ecosystem services
    Date: 2018–12
  5. By: Andersson, Tommy (Department of Economics, Lund University); Dur, Umut (Department of Economics, North Carolina State University); Ertemel, Sinan (Department of Economics, Istanbul Technical University); Kesten , Onur (Tepper School of Business, Carnegie Mellon University)
    Abstract: Motivated by school admission systems used in, e.g., Turkey and Sweden, this paper investigates a sequential two-stage admission system with public and private schools. To perform the analysis, relevant axioms and equilibrium notions need to be tailored for the considered dynamic setting. In particular, a notion of truthfulness, referred to as straightforwardness, is introduced. In sharp contrast to classic one-stage admission systems, sequentiality leads to a trade-off between the existence of a straightforward (i.e., truthful) equilibrium and non-wastefulness. Given this insight, we identify the unique set of rules for two-stage admission systems that guarantees the existence of a straightforward equilibrium and, at the same time, reduces the number of wasted school seats. Several existing admission systems are also theoretically analyzed within our general framework and empirically evaluated using school choice data from Sweden. The latter analysis allows us to quantify various trade-offs in sequential admission systems.
    Keywords: market design; sequential school choice; private schools; public schools; straightforward SPNE; non-wastefulness
    JEL: C71 C78 D71 D78 D82
    Date: 2018–12–10

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