nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2021‒11‒15
seven papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Preferences for Tree-Fruit Market Attributes Among Smallholder Farmers in Eastern Rwanda: A Discrete Choice Experiment By Seegers, Ronja; Ihli, Hanna; Winter, Etti; Chiputwa, Brian; Gassner, Anja
  2. Willingness to pay or willingness to accept? An experimental study on secondhand smoke By Eleanya Nduka
  3. Willingness to Pay for Postharvest Technologies and Its Influencing Factors Among Smallholder Mango Farmers in Kenya By Mujuka, Esther; Mburu, John; Ackello-Ogutu, Chris; Ambuko, Jane
  4. Reflective Willingness to Pay: Preferences for Sustainable Consumption in a Consumer Welfare Analysis By Inderst, Roman; Thomas, Stefan
  5. Panel Study of Emerging Transportation Technologies and Trends in California: Phase 2 Findings By Circella, Giovanni; Iogansen, Xiatian; Matson, Grant; Malik, Jai; Etezady, Ali
  6. The Formation of Reference Points in Consumer Choice Behavior: Experimental Evidence from a Fish Market in Nigeria By Shikuku, Kelvin Mashisia; Bulte, Erwin; Lagerkvist, Carl Johan; Tran, Nhuong
  7. Consumer Choice under Certainty and Uncertainty in Applied Econometrics By Bernt P. Stigum

  1. By: Seegers, Ronja; Ihli, Hanna; Winter, Etti; Chiputwa, Brian; Gassner, Anja
    Keywords: Marketing
    Date: 2021–08
  2. By: Eleanya Nduka (Department of Economics, University of Exeter)
    Abstract: The anomaly between willingness to pay (WTP) and willingness to accept (WTA) invokes a well-established discussion in the stated preference literature. The debate involves which of the two is a better welfare measure. Although a few studies have tried to provide some insights, many researchers settle for eliciting WTP rather than WTA. However, WTA is a better welfare measure in some circumstances, especially in situations involving spillover effects and property rights. We investigate one of such situations and provide insights into how individuals in heterogeneous healthcare systems (private (U.S.) and public (U.K.)) value the effects of a spillover. First, we use choice experiments and contingent valuation techniques to quantify the attributes of secondhand smoke (SHS) health risks, focusing on generating crosscountry comparisons. We then compare the WTP and WTA welfare estimates. We find that agents differ significantly in valuing "external" health risks. Hence, this study uncovers an aspect of health risks valuation lacking in the literature. We also find that the two welfare measures differ significantly; thus, we contribute to the ongoing debate between WTP and WTA.
    Date: 2021–11–06
  3. By: Mujuka, Esther; Mburu, John; Ackello-Ogutu, Chris; Ambuko, Jane
    Keywords: Farm Management, Research and Development/Tech Change/Emerging Technologies
    Date: 2021–08
  4. By: Inderst, Roman; Thomas, Stefan
    Abstract: Our starting point is the following simple but potentially underappreciated observation: When assessing willingness to pay (WTP) for hedonic features of a product, the results of such measurement are influenced by the context in which the consumer makes her real or hypothetical choice or in which the questions to which she replies are set (such as in a contingent valuation analysis). This observation is of particular relevance when WTP regards sustainability, the "non-use value" of which does not derive from a direct (physical) sensation and where perceived benefits depend heavily on available information and deliberations. The recognition of such context sensitivity paves the way for a broader conception of consumer welfare (CW), and our proposed standard of "reflective WTP" may materially change the scope for private market initiatives with regards to sustainability, while keeping the analytical framework within the realm of the CW paradigm. In terms of practical implications, we argue, for instance, that actual purchasing decisions may prove insufficient to measure consumer appreciation of sustainability, as they may rather echo learnt but unreflected heuristics and may be subject to the specific shopping context, such as heavy price promotions. Also, while it may reflect current social norm, the latter may change considerably over time as more consumers adopt their behavior.
    Keywords: Antitrust,Consumer Welfare,Sustainability
    JEL: A13 K21 K32
    Date: 2021
  5. By: Circella, Giovanni; Iogansen, Xiatian; Matson, Grant; Malik, Jai; Etezady, Ali
    Abstract: Emerging transportation services, whose development and adoption have been enabled by information and communication technology, are largely transforming people’s travel and activity patterns. This study investigates the emerging transportation trends and how they transform travel-related decision-making in the population at large through the application of a unique longitudinal approach. As part of this project, a second wave of data collection in 2018 was built with a rotating panel structure as a continuation of the research efforts that started with the collection of the 2015 California Millennials Dataset. This report focuses on the analyses of the data collected in this project, in particular on the differences in attitudes towards transportation and the environment among different generational groups, the adoption and use of shared mobility services, and their relationship with vehicle ownership, the interest in the adoption of alternative fuel vehicles, and the interest in the future adoption of connected and automated vehicles. Due to the small number of respondents who participated in both surveys, for the purposes of the analyses contained in this report, we treated the data as repeated cross-sectional and analyzed the data from each survey separately. The study helps researchers evaluate the complex relationship between observed/latent characteristics and individual travel-related choices and decision-making. The study highlights attitudinal and mode-choice differences across generations. It explores the factors impacting current adoption of and future interest in new transportation technology including alternative fuel vehicles, automated vehicles and shared mobility. Divergent consumer segments are witnessed within each of these markets, with distinctive socio-demographics, latent attitudes, built environment, and level of familiarity with new technologies, which shape the uniqueness of their vehicle ownership, residential location, travel behavior, activity patterns, and lifestyle. View the NCST Project Webpage
    Keywords: Social and Behavioral Sciences, Longitudinal Data, Cross-sectional Data, Millennials, Individual Lifestyles, Shared Mobility, Travel Behavior, Vehicle Ownership
    Date: 2021–11–01
  6. By: Shikuku, Kelvin Mashisia; Bulte, Erwin; Lagerkvist, Carl Johan; Tran, Nhuong
    Keywords: Consumer/Household Economics
    Date: 2021–08
  7. By: Bernt P. Stigum
    Abstract: The paper lists salient characteristics of the certainty theory of consumer choice and discusses the import of prominent empirical analyses of the theory. All of them reject the theory’s empirical relevance which suggests that the theory is unfit to analyze consumer choice in an uncertain world. The paper presents an extension of the certainty theory to a theory about consumer choice under uncertainty in which consumer behavior has interesting new properties. I conclude with an empirical test of the empirical relevance of an uncertainty version of Stone’s Linear Expenditure System. In the given empirical context Stone’s System is empirically relevant.
    Keywords: Utility function, linear expenditure system, almost ideal demand system, income and substitution effects, expectations’ effect.
    JEL: A12 B23 B41 C01 C18 C30 C45 C51 C52 D12 D41 D59
    Date: 2021–10–08

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