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on Discrete Choice Models |
| By: | Kassie, Girma T.; Zeleke, Fresenbet; Birhanu, Mulugeta Y.; Scarpa, Riccardo |
| Keywords: | Marketing, Institutional and Behavioral Economics, Research Methods/Statistical Methods |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea20:304208&r=all |
| By: | Christian A. Vossler; Stéphane Bergeron; Maurice Doyon; Daniel Rondeau |
| Abstract: | Comparisons of willingness-to-pay (WTP) and willingness-to-accept (WTA) compensation measures have raised concerns over the validity of stated preference methods, and have motivated researchers to predominantly elicit WTP measures even when existing property rights or entitlements would make WTA measures more appropriate. Extending the insight of Plott and Zeiler (2005) to the case of public goods, we argue that past results may in part be driven by experimental design choices, including the use of non-incentive compatible elicitation methods. Using the conservation of wetlands in northern Quebec (Canada) as a case study, we find that WTA/WTP ratios are poorly identified unless estimation procedures control for the beliefs of respondents regarding the consequentiality of their responses. Beliefs over consequentiality are directly tied to sufficiency conditions for the incentive compatibility of stated preference surveys. We find that when respondents express at least “moderate” beliefs over the consequentiality of the survey, resulting WTA/WTP ratios are close to unity. |
| Keywords: | Stated Preferences,Incentive Compatibility,Willingness-to-Pay,Willingness-to-Accept,Consequentiality, |
| JEL: | C93 D6 Q51 |
| Date: | 2020–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2020s-48&r=all |
| By: | Hellwig, Robert (RWTH Aachen University); Atasoy, Ayse Tugba (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | This paper investigates the impact of social preferences and information about the value chain on the willingness to pay (WTP) for Fairtrade products. More specifically, the perceived social and economic benefits for Fairtrade farmers are analyzed in order to study whether altruistic preferences or information biases may shift consumers’ WTP. By means of an online survey, the empirical analysis is carried out for the coffee market. After grouping and comparing participants with respect to their WTP, social preferences, and demographic backgrounds, we find some evidence that consumers wrongly estimate, and lack information on, the financial benefits of Fairtrade certification that are eventually allocated to the coffee farmers. Large multinational enterprises often seem to make use of the Fairtrade system in order to gain financial and competitive advantages by “fairwashing” their products. This demonstrably leads to a higher WTP for an ethical premium that is not necessarily justified. |
| Keywords: | Social preferences; Willingness to pay; Fairtrade; Coffee market; Tobit model |
| JEL: | D63 D83 O13 Q01 Q56 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2020_006&r=all |
| By: | Van Asselt, Joanna; Nian, Yefan; Soh, Moonwon; Gao, Zhifeng; Morgan, Stephen N |
| Keywords: | Marketing, Resource/Energy Economics and Policy, Food Consumption/Nutrition/Food Safety |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea20:304503&r=all |
| By: | Chris Muris; Pedro Raposo; Sotiris Vandoros |
| Abstract: | We study a fixed-$T$ panel data logit model for ordered outcomes that accommodates fixed effects and state dependence. We provide identification results for the autoregressive parameter, regression coefficients, and the threshold parameters in this model. Our results require only four observations on the outcome variable. We provide conditions under which a composite conditional maximum likelihood estimator is consistent and asymptotically normal. We use our estimator to explore the determinants of self-reported health in a panel of European countries over the period 2003-2016. We find that: (i) the autoregressive parameter is positive and analogous to a linear AR(1) coefficient of about 0.25, indicating persistence in health status; (ii) the association between income and health becomes insignificant once we control for unobserved heterogeneity and persistence. |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2008.05517&r=all |
| By: | Ureta, Julie Carl; Motallebi, Marzieh; Vassalos, Michael; Ureta, Joan |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea20:304442&r=all |
| By: | Ahasan, Rakibul (Texas A&M University); Mudasser, Mehedi |
| Abstract: | The information regarding travel behavior of the citizen and understanding why they are making any particular choice in their trip making is gaining vital importance in shaping the traffic management system in any city efficient and competent. Travel behavior pattern of the citizens could have both negative and positive influences on the sustainability issue of any transport system. This paper focuses on the steps of the transport demand model with two types of information- demographic information and travel data. Information regarding trip generation, the pattern of trip variation with housing types, modal choices for various purposes along with changes in income variation of citizens in Khulna City were explored using statistical tools and` techniques, and trip distribution modeling was done to find out the factors affecting the trip making behavior. The findings showed that there is present a salubrious relationship between the income level of the people and their mode preferences. However, the total number of trips has influenced mostly by the income of the households where housing condition has a negative impact on the trips produced. Vehicle ownership and family size do not have that much effect on the number of trips generated. So, the consideration of both positive and negative influential variables on the travel pattern can help to outline a sustainable future transportation plan of Khulna City. |
| Date: | 2018–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:tc3fm&r=all |
| By: | Wei, Xiaohan; Chen, Xuqi; Gao, Zhifeng; Jensen, Kimberly L.; Yu, Tun-Hsiang; DeLong, Karen L. |
| Keywords: | Marketing, Institutional and Behavioral Economics, Agribusiness |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea20:304573&r=all |
| By: | Herrington, Caitlin L.; Taleon, Victor; Sarkar, Abdur Rouf; Rahaman, Shajedur; Birol, Ekin; Maredia, Mywish K.; Ortega, David L. |
| Keywords: | Research Methods/Statistical Methods, International Development, Food Consumption/Nutrition/Food Safety |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea20:304316&r=all |