nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2019‒09‒23
three papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. The location choice of technology-based firms: a stated choice experiment of science park alternatives By Wei Keat Benny Ng; Rianne Appel-Meulenbroek; Myriam Cloodt; Theo Arentze
  2. The distance elasticity at short distances - A study of the library choice of Oxford students By Ferdinand Rauch; Kristiina Tuomikoski
  3. Evil deeds in urban economics By Berliant, Marcus; Fujita, Masahisa

  1. By: Wei Keat Benny Ng; Rianne Appel-Meulenbroek; Myriam Cloodt; Theo Arentze
    Abstract: Technology development is increasingly important for creating efficient and sustainable economies. One of the innovation policies are science parks, area developments where technology-based firms and knowledge-based institutions co-locate. Preferences of technology-based firms relate to the presence and quality of certain facilities, services, and location attributes, which are means for achieving organizational goals. As science parks are locations that generally offer a mix of such facilities and services, it can be configured in numerous ways. The gap between what science parks offer and what tenants need has been acknowledged as troublesome by science park managers and tenants as this gap can negatively influence the performance of science parks and their tenants. Therefore, this study focuses on the preferences of technology-based firms in relation to science park attributes and if different target groups can be distinguished from these preferences. To collect data about preferences, an online survey is distributed among technology-based firms both on and off science parks in the Netherlands. Using the technique of stated-choice experiments, decision-makers of technology-based firms (i.e. CEOs) are presented carefully designed hypothetical science-park locations and asked to indicate which location they would prefer if they would relocate. In the experimental design used, each hypothetical location consists of seven attributes each with three levels. The choice data allows for estimating the preference values for the different levels of each attribute, while taking into account the respondent’s current situation, using a discrete choice model as framework (a latent class model). This research provides insights on which science park attributes are desirable for technology-based firms and how much firms are willing-to-pay for particular attributes. Furthermore, differences in preferences between distinct target groups among technology-based firms are analyzed. For practice, the insights allow management of science parks to better adapt services and location characteristics to demands of the target groups of interest.
    Keywords: Corporate real estate management; science parks; Stated choice experiment; Technology firms
    JEL: R3
    Date: 2019–01–01
  2. By: Ferdinand Rauch; Kristiina Tuomikoski
    Abstract: Ferdinand Rauch, Kristiina Tuomikoski This paper presents a number of facts on the use of the Bodleian libraries by Oxford students. We pay particular attention to the importance of the distance between a student’s home and a library on the choice of which library to use. This small scale distance elasticity is an important parameter for urban economics. We find a distance elasticity of around -0.3, closer to zero than observed in related studies.
    Keywords: Library usage, Distance elasticity, Gravity model
    JEL: F14 R12
    Date: 2019–01–04
  3. By: Berliant, Marcus; Fujita, Masahisa
    Abstract: The purpose of this note is to update an ancient controversy over the comparison between discrete and continuous agent models of land use and agent location in urban economics. Berliant (1985) shows that that the following statement is self-contradictory: "There is a continuum of agents, each of whom owns or is endowed with a positive Lebesgue measure of land." A corollary follows: "As the number of agents tends to infinity, the set of agents who own a positive Lebesgue measure of land shrinks to zero." The basic question is this: Under what circumstances, if any, can we reconcile the two models?
    Keywords: Large urban economies; Continuous and discrete agent models
    JEL: D51 R13 R14
    Date: 2019–08–30

This nep-dcm issue is ©2019 by Edoardo Marcucci. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.