nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2020‒06‒15
nine papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Semiparametric Identification and Estimation of Discrete Choice Models for Bundles By Fu Ouyang; Thomas Tao Yang; Hanghui Zhang
  2. Supplier selection in emerging market economies: a discrete choice analysis By Hayk Manucharyan
  3. Food labels: how consumers value moral, environmental, and health aspects of meat consumption By Carlsson, Fredrik; Kataria, Mitesh; Lampi, Elina; Nyberg, Erik; Sterner, Thomas
  4. How do managers actually choose suppliers? Evidence from revealed preference data By Hayk Manucharyan
  5. Effects of climate change on tourism demand considering individual seasonal preferences By Robert Steiger; Eva Posch; Gottfried Tappeiner; Janette Walde
  6. Sexual Harassment and Gender Inequality in the Labor Market By Folke, Olle; Rickne, Johanna
  7. The Climate Decade: Changing Attitudes on Three Continents By Carlsson, Fredrik; Kataria, Mitesh; Krupnick, Alan; Elina, Lampi; Åsa, Löfgren; Qin, Ping; Thomas, Sterner; Yang, Xiaojun
  8. Dynamic Panel Logit Models with Fixed Effects By Bo E. Honor\'e; Martin Weidner
  9. Semiparametric Estimation of Dynamic Binary Choice Panel Data Models By Fu Ouyang; Thomas Tao Yang

  1. By: Fu Ouyang; Thomas Tao Yang; Hanghui Zhang
    Abstract: We study (point) identification of preference coefficients in semiparametric discrete choice models for bundles. The approach to the identification uses an “identification at infinity†(Chamberlain (1986)) insight in combination with median independence restrictions on unobservables. We propose two-stage maximum score (MS) estimators and show their consistency
    Keywords: Bundle choices, semiparametric model, median independence, identification at infinity, maximum score estimation.
    JEL: C14 C23 C35
    Date: 2020–05
  2. By: Hayk Manucharyan (Faculty of Economic Sciences, University of Warsaw)
    Abstract: This study presents the perceived importance of different supplier attributes for managers’ choice of suppliers in emerging market economies. We analyze the supplier selection process based on multiple attributes categorized into six groups: quality, cost, delivery, product, service, and business. Empirical data for this study was collected from 163 corporate executives in the automotive and fast-moving consumer goods industries operating in Poland and India. A two-part survey was conducted; the first part consisted of a Likert scale set of questions aimed at determining the perceived importance of supplier attributes. The second part of the survey was a discrete choice experiment that examined the actual choices of experimental supplier profiles made by executives. Comparing our results to previous works in this domain, we find that the importance of the cost attribute has decreased over the past two decades, whereas the relevance of delivery and product has increased. Each of the six supplier attributes was broken down into sub-attributes, which provided us with an insight into the decision-making process. The results indicate that with respect to delivery, delivery lead time, responsiveness to demand fluctuations, and compliance with due date had a significant effect on executives’ decisions. At the same time, new product availability and product range played crucial role amongst product attributes. Finally, the dataset was split into different sub-groups, based on the two industries and two countries analyzed, to examine industrial and cultural differences.
    Keywords: supplier selection, vendor selection, purchasing, supply chain management, conjoint analysis, stated preferences, discrete choice experiment
    JEL: C01 C44 C90
    Date: 2020
  3. By: Carlsson, Fredrik (Department of Economics, School of Business, Economics and Law, Göteborg University); Kataria, Mitesh (Department of Economics, School of Business, Economics and Law, Göteborg University); Lampi, Elina (Department of Economics, School of Business, Economics and Law, Göteborg University); Nyberg, Erik (Department of Economics, School of Business, Economics and Law, Göteborg University); Sterner, Thomas (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: Policy changes could improve health and environmental outcomes by addressing the many externalities and internalities related to food consumption. Using a stated preference approach, we investigate to what extent consumers are willing to make costlier food consumption choices if doing so contributes to decrease environmental externalities, health damages, and animal suffering. We find a considerable willingness to pay for some aspects of the food bought. People are willing to pay an additional 50% for a product if it carries a label declaring that the product meets the highest available standards in terms of healthiness, animal welfare, and antibiotics use, respectively. The willingness to pay for a climate impact label is also sizeable but smaller. We compare a traffic-light label with a plain-text label and a grey-scale label in order to disentangle the effects of introducing labels Our results are mixed, suggesting that a traffic-light label has both normative and cognitive effects on behavior.
    Keywords: Food labels; choice experiment; norms; food choice
    JEL: Q11 Q18
    Date: 2020–04
  4. By: Hayk Manucharyan (Faculty of Economic Sciences, University of Warsaw)
    Abstract: Supplier selection plays a pivotal role in the success of any organization as it significantly reduces purchasing costs and increases corporate competitiveness. At the same time, it is a very challenging task as decision-makers have to tradeoff among different supplier attributes. In this paper, a discrete choice model of supplier selection is developed, based on revealed preference data collected from an electrical equipment manufacturer in Poland. We explore the importance of different attributes for the initial choice and subsequent switching of suppliers. The proposed logit model is proceeded by a nonparametric analysis conducted through the Chi-square Automatic Interaction Detector (CHAID) framework, which serves exploratory purposes. We find that delivery and reliability play a crucial role in decision-making with regards to choosing suppliers and switching them if necessary.
    Keywords: supplier selection, purchasing, supply chain management, revealed preferences, discrete choice analysis, logit model, CHAID prediction model
    JEL: C01 C44 D22
    Date: 2020
  5. By: Robert Steiger; Eva Posch; Gottfried Tappeiner; Janette Walde
    Abstract: Climate change is a major challenge for weather-dependent industries such as winter tourism. Existing climate change impact assessments largely do not consider seasonality of demand and snow conditions are usually included as binary variable (e.g. ski area open or closed). With this paper we want to address seasonality of demand, timing of marginal snow conditions and differential sensitivity of customers to marginal snow. Our objective is to investigate the impact of climate change on ski tourism demand in order to improve the basis for assessing the economic impacts of climate change. A representative survey and choice experiment with 1312 skiers in 53 Austrian ski areas is used as basis for this analysis. The impact of marginal snow conditions on demand is simulated with preferences of skiers for certain ski area attributes (including snow) derived from the choice experiment. Results show that a lack of natural snow can cause significant demand losses of up to 17%. If in addition snow experiences turn to bad, our simulation shows losses of up to 35%. Results suggest that demand losses are to be expected sooner than suggested by impact assessments modeling operating days. This study also shows that seasonality of demand combined with seasonality of marginal snow conditions considerably alters projected climate change-induced losses of demand.
    Keywords: Winter tourism; Climate change; Choice experiment; Alpine region; Demand simulation; seasonality
    JEL: R11 D9 Q56 Z3
    Date: 2020–08
  6. By: Folke, Olle; Rickne, Johanna
    Abstract: This paper offers a comprehensive empirical analysis of sexual harassment in the Swedish labor market. First, we use nationally representative survey data linked with employer-employee data to describe rates of self-reported sexual harassment across occupations and workplaces. The risk of sexual harassment is clearly imbalanced across the sex segregated labor market. In gender-mixed and male-dominated occupations and workplaces, women have a higher risk than men, and men have a higher risk than women in female-dominated contexts. We use a hypothetical job-choice experiment with vignettes for sexual harassment to measure the disutility of sexual harassment risks. Both men and women have an equally high willingness to pay for avoiding workplaces where sexual harassment has occurred. But the willingness to pay is conditional on the sex of the fictional harassment victim. People reject workplaces where the victim is the same sex as themselves, but not where the victim is of the opposite sex. We return to the administrative data to study employer compensation for the disutility of sexual harassment risks. Within workplaces, a high risk is associated with lower, not higher wages. People who self-report sexual harassment also have higher job dissatisfaction, more quit intentions, and more actual quits. Both these patterns indicate a lack of full compensation. We conclude that sexual harassment should be conceptualized as gender discrimination in workplace amenities, and that this discrimination reinforces sex segregation and pay-inequalities in the labor market.
    Keywords: Gender Inequality; occupational gender segregation; Sexual harassment; workplace amenities
    JEL: J16 J24 J81
    Date: 2020–05
  7. By: Carlsson, Fredrik (Department of Economics, School of Business, Economics and Law, Göteborg University); Kataria, Mitesh (Department of Economics, School of Business, Economics and Law, Göteborg University); Krupnick, Alan (Resources for the Future,); Elina, Lampi (Department of Economics, School of Business, Economics and Law, Göteborg University); Åsa, Löfgren (Department of Economics, School of Business, Economics and Law, Göteborg University); Qin, Ping (School of Applied Economics, Renmin University of China); Thomas, Sterner (Department of Economics, School of Business, Economics and Law, Göteborg University); Yang, Xiaojun (School of Public Policy and Administration, Xi'an Jiaotong University)
    Abstract: We examine how attitudes and willingness to pay (WTP) for climate policies have changed over the past decade in the United States, China, and Sweden. All three countries exhibit an increased willingness to pay for climate mitigation. Ten years ago, Sweden had a larger fraction of believers in anthropogenic climate change and a higher WTP for mitigation, but today the national averages are more similar. Although we find convergence in public support for climate policy across countries, there is considerable divergence in climate attitudes and preferences within countries, particularly the United States. Political polarization explains part of this divergence.
    Keywords: Climate change; willingness to pay; climate policy attitudes; political polarization; multi-country; China; United States; Sweden
    JEL: Q51 Q54
    Date: 2020–05
  8. By: Bo E. Honor\'e; Martin Weidner
    Abstract: This paper presents new moment conditions for dynamic panel data logit models with fixed effects. After introducing the new moment conditions we explore their implications for identification and estimation of the model parameters that are common to all individuals, and we find that those common model parameters are estimable at root-n rate for many more dynamic panel logit models than was previously known in the literature. A GMM estimator that is based on the new moment conditions is shown to perform well in Monte Carlo simulations and in an empirical illustration to labor force participation.
    Date: 2020–05
  9. By: Fu Ouyang; Thomas Tao Yang
    Abstract: We propose a new approach to the semiparametric analysis of panel data binary choice models with fixed effects and dynamics (lagged dependent variables). The model we consider has the same random utility framework as in Honore and Kyriazidou ´ (2000). We demonstrate that, with additional serial dependence conditions on the process of deterministic utility and tail restrictions on the error distribution, the (point) identification of the model can proceed in two steps, and only requires matching the value of an index function of explanatory variables over time, as opposed to that of each explanatory variable. Our identification approach motivates an easily implementable, two-step maximum score (2SMS) procedure – producing estimators whose rates of convergence, in contrast to Honore and Kyriazidou ´ ’s (2000) methods, are independent of the model dimension. We then derive the asymptotic properties of the 2SMS procedure and propose bootstrap-based distributional approximations for inference. Monte Carlo evidence indicates that our procedure performs adequately in finite samples. We then apply the proposed estimators to study labor market dependence and the effects of health shocks, using data from the Household, Income and Labor Dynamics in Australia (HILDA) survey.
    Keywords: Semiparametric estimation; Binary choice model; Panel data; Fixed effects; Dynamics; Maximum score; Bootstrap
    JEL: C14 C23 C35
    Date: 2020–05

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