nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2021‒10‒18
eleven papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Examining Consumer Willingness-to-Pay for Domestic Raw Material for Processed Foods and its Heterogeneity by Degree of Processing: A Choice Experiment Approach By Heo, Seong-Yoon; Kim, Sanghyo
  2. Does Omitting Downstream Water Quality Change the Economic Benefits of Nutrient Reduction Programs: Evidence from a Discrete Choice Experiment By Shr, Yau-Huo Jimmy; Zhang, Wendong
  3. Consumers’ Valuation for Cultured Chicken Meat: A Multi-city Choice Experiment in China By Yuan, Rao; Asioli, Daniele; Jin, Shaosheng; Nayga, Rodolfo M.
  4. Consumer Preferences for Chlorine Washed Chicken, Attitudes to Brexit and Trade Agreements By Kelvin Balcombe; Dylan Bradley; Iain Fraser
  5. Do additional health and origin claims affect U.S. consumer preferences and willingness to pay for nutritional and origin labels? The case of Tart Cherry Juice By Lineback, Caitlinn; Caputo, Vincenzina; McKendree, Melissa G. S.
  6. Choice probabilities and correlations in closed-form route choice models: specifications and drawbacks By Fiore Tinessa; Vittorio Marzano; Andrea Papola
  7. Activity and Transportation Decisions within Households By André de Palma; Nathalie Picard; Robin Lindsey
  8. Selecting valuation distributions: non-price decisions of multi-product firms By Stefanie Bossard; Armin Schmutzler
  9. Modeling the Joint Decisions on Consumer Store Selection and Product Choice By Chen, Junhong; Gao, Zhifeng; Nian, Yefan
  10. Estimating High Dimensional Monotone Index Models by Iterative Convex Optimization1 By Shakeeb Khan; Xiaoying Lan; Elie Tamer
  11. Indoor Agriculture can do better for the consumers and environment By Seong, Jisub; Valle De Souza, Simone; Peterson, Christopher

  1. By: Heo, Seong-Yoon; Kim, Sanghyo
    Keywords: Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Marketing
    Date: 2021–08
  2. By: Shr, Yau-Huo Jimmy; Zhang, Wendong
    Keywords: Environmental Economics and Policy, Agricultural and Food Policy, Research Methods/Statistical Methods
    Date: 2021–08
  3. By: Yuan, Rao; Asioli, Daniele; Jin, Shaosheng; Nayga, Rodolfo M.
    Keywords: Food Consumption/Nutrition/Food Safety, Marketing, Research Methods/Statistical Methods
    Date: 2021–08
  4. By: Kelvin Balcombe; Dylan Bradley; Iain Fraser
    Abstract: This research employs two alternatively framed but formally equivalent discrete choice experiments that examine UK consumer preferences regarding chlorine washed chicken. One is framed in a common purchase format, the other employs a format that endows respondents with a voucher that they can use to redeem for a chicken product, or exchange, in part, for an alternative chicken product or cash. We find that the difference in our value estimates is small regardless of how we implement our choice experiment. Our analysis also differentiates the value estimates by respondent attitude to Brexit. The results reveal that being positively disposed toward Brexit means that respondents are less likely to value chlorine washed chicken negatively. Yet, of equal or greater significance, those respondents who hold positive attitudes with regard to Brexit still value EU food safety standards and quality assurance schemes such as Red Tractor highly. This suggests that attitudes to Brexit and preferences regarding food do not necessarily align in support of trade agreements that may require the UK to lower existing food safety and animal welfare standards. Potential policy solutions to ensure consumer preferences are satisfied are discussed.
    Keywords: Chlorinated Chicken; Willingness to Pay; Discrete Choice Experiment; Brexit; Trade Policy; Red Tractor
    JEL: Q18 Q17 I18
    Date: 2021–09
  5. By: Lineback, Caitlinn; Caputo, Vincenzina; McKendree, Melissa G. S.
    Keywords: Marketing, Food Consumption/Nutrition/Food Safety, Health Economics and Policy
    Date: 2021–08
  6. By: Fiore Tinessa; Vittorio Marzano; Andrea Papola
    Abstract: This paper investigates the performance, in terms of choice probabilities and correlations, of existing and new specifications of closed-form route choice models with flexible correlation patterns, namely the Link Nested Logit (LNL), the Paired Combinatorial Logit (PCL) and the more recent Combination of Nested Logit (CoNL) models. Following a consolidated track in the literature, choice probabilities and correlations of the Multinomial Probit (MNP) model by (Daganzo and Sheffi, 1977) are taken as target. Laboratory experiments on small/medium-size networks are illustrated, also leveraging a procedure for practical calculation of correlations of any GEV models, proposed by (Marzano 2014). Results show that models with inherent limitations in the coverage of the domain of feasible correlations yield unsatisfactory performance, whilst the specifications of the CoNL proposed in the paper appear the best in fitting both MNP correlations and probabilities. Performance of the models are appreciably ameliorated by introducing lower bounds to the nesting parameters. Overall, the paper provides guidance for the practical application of tested models.
    Date: 2021–10
  7. By: André de Palma; Nathalie Picard; Robin Lindsey (CY Cergy Paris Université, THEMA)
    Abstract: Households are often responsible for labour supply, time allocation, transportation and many other decisions. Yet, research in both economics and transportation was traditionally dominated by so-called unitary models that treat households as single decision-making units with a representative individual. This began to change with the development, in the field of Economics of the Family, of non-unitary models that recognize differences in household members preferences, and attempt to describe the joint decision making processes within households. Application of non-unitary models took off in the transportation literature with the special issues on modelling intra-household interactions edited by Bhat and Pendyala, 2005 [24] and Timmermans and Zhang, 2009 [113]. This chapter reviews the development of integrated models of household activity and transportation from the perspective of the Economics of the Family. These models have been applied to long-run decisions such as residential and workplace location and vehicle ownership, as well as short-run decisions including activity schedules, transport mode, and departure time. Non-unitary models go well beyond conventional discrete choice models by accounting for individual family members preferences, and within-family decision- making processes. The models feature new concepts specific to within-family interactions, including repeated interaction, bargaining, altruism, and Pareto optimality.
    Keywords: Economics of the family, mobility, residential location, bargaining power, decisions, households, policy analysis
    JEL: H31 P25 R41
    Date: 2021
  8. By: Stefanie Bossard; Armin Schmutzler
    Abstract: This paper analyzes decisions of multi-product firms regarding product selection, innovation and advertising as choices of consumer valuation distributions. We show that a profit-maximizing monopolist chooses these distributions so as to maximize the dispersion of the valuation differences between goods across consumers. By contrast, she chooses the willingness-to-pay to be maximally or minimally dispersed, depending on the set of available distributions. In our benchmark model with uniform valuation differences, prices are increasing in valuation difference heterogeneity, but in more general settings this is not necessarily true. Moreover, the relation between willingness-to-pay heterogeneity and prices may well be non-monotone. Over wide parameter ranges, the firm’s choice of valuation distribution does not maximize net consumer surplus. This problem is exacerbated when the firm has access to strategies that distort valuation heterogeneity or willingness-to-pay heterogeneity.
    Keywords: Product choice, multiproduct firms, product heterogeneity, valuation distributions, consumer confusion
    JEL: D43 L13 M30
    Date: 2021–10
  9. By: Chen, Junhong; Gao, Zhifeng; Nian, Yefan
    Keywords: Marketing, Institutional and Behavioral Economics, Agribusiness
    Date: 2021–08
  10. By: Shakeeb Khan; Xiaoying Lan; Elie Tamer
    Abstract: In this paper we propose a new approach to estimating large dimensional monotone index models. This class of models has been popular in the applied and theoretical econometrics literatures as they include discrete choice, nonparametric transformation, and duration models. The main advantage of our approach is computational: in comparison, rank estimation procedures such as proposed in Han (1987) and Cavanagh and Sherman (1998) optimize a nonsmooth, non convex objective function, and finding a global maximum gets increasingly difficult with a large number of regressors. This makes such procedures particularly unsuitable for big data models. For our semiparametric model of increasing dimension, we propose a new algorithm based estimator involving the method of sieves and establish asymptotic its properties. The algorithm uses an iterative procedure where the key step exploits its strictly convex objective function. Our main results here generalize those in, e.g. Dominitz and Sherman (2005) and Toulis and Airoldi (2017), who consider algorithmic based estimators for models of fixed dimension.
    Date: 2021–10
  11. By: Seong, Jisub; Valle De Souza, Simone; Peterson, Christopher
    Keywords: Agribusiness, Marketing, Research Methods/Statistical Methods
    Date: 2021–08

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