nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2021‒12‒20
seven papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Combining Stated and Revealed Preferences for valuing Organic Chicken Meat By Michael Burton; Adelina Gschwandtner; Jose Eduardo Ribeiro; Cesar Revoredo-Giha
  2. Estimating discrete choice experiments : theoretical fundamentals By Benoit Chèze; Charles Collet; Anthony Paris
  3. Identifying Dynamic Discrete Choice Models with Hyperbolic Discounting By Taiga Tsubota
  4. Preferences for In-Kind and In-Cash Home Care Insurance By de Bresser, Jochem; Knoef, Marike; van Ooijen, Raun
  5. Acceptability of jackfruit-nut-bars as a healthy snack in Uganda By Tepe, Johanna; Lemken, Dominic
  6. Gene-Edited or Genetically Modified Food? the Impacts of Risk and Ambiguity on Chinese Consumers’ Willingness to Pay By Yu, Jianyu
  7. Putting a new 'spin' on energy labels: measuring the impact of reframing energy efficiency on tumble dryer choices in a multi-country experiment. By Stefano Ceolotto; Eleanor Denny

  1. By: Michael Burton; Adelina Gschwandtner; Jose Eduardo Ribeiro; Cesar Revoredo-Giha
    Abstract: The present paper uses a jont stated preference (SP) and revealed preference (RP) model in order to estimate the willingness to pay (WTP) for the organic attribute among other key environmental attributes in chicken meat. The stated preference model is based on the respondent's choice from hypothetical choice sets in a choice experiment. The revealed preference model is using a comprehensive data-set of scanned supermarket shopping's to model the choice for chicken meat in a similar manner. The attributes in the stated preference model are based on the ranges of the actual levels of attributes found in supermarket and are presented to respondents using a fractional factorial design. The joint SP-RP approach takes advantage of the benefits of both approaches and addresses econometric issues and biases from both. The results show that the two models appear to reject similar underlying preferences and can be meaningfully combined. Furthermore, the results show that when combining the RP and SP information, the consumers appear to be willing to pay a larger amount for the organic attribute in chicken meat than when the SP and RP approach's are applied separately. The paper contributes to the literature by being the first to estimate the WTP for organic chicken using a joint estimation approach.
    Keywords: Choice Experiments; Revealed Preferences; Joint Estimation
    JEL: C25 Q18 Q51
    Date: 2021–12
  2. By: Benoit Chèze (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Charles Collet (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Anthony Paris (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, LEO - Laboratoire d'Économie d'Orleans - UO - Université d'Orléans - Université de Tours - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This working paper overviews theoretical foundations and estimators derived from econometric models used to analyze stated choices proposed in Discrete Choice Experiment (DCE)surveys. Discrete Choice Modelling is adapted to the case where the variable to be explained is a qualitative variable which cannot be ranked in relation to each other. A situation which occurs in many cases in everyday life as people often have to choose only one alternative among a proposed set of different ones in many fields (early in the morning, just think about how you pick clothes for instance). DCE is a Stated Preference method in which preferences are elicited through repeated fictional choices, proposed to a sample of respondents. Compared to Revealed Preference methods, DCEs allow for an ex ante evaluation of public policies that do not yet exists.
    Keywords: Revealed preference theory,Stated Preference / Stated Choice methods,Discrete Choice Modelling,Discrete Choice Experiment
    Date: 2021–04–12
  3. By: Taiga Tsubota
    Abstract: We study identification of dynamic discrete choice models with hyperbolic discounting. We show that the standard discount factor, present bias factor, instantaneous utility functions, and the perceived conditional choice probabilities for the sophisticated agent are point-identified in a finite horizon model. The main idea to achieve identification is to exploit variation of the observed conditional choice probabilities over time. We also show that, if the data have an additional state variable, the identification result is still valid with less severe requirements for the number of time periods in the data. We also present the estimation method and demonstrate a good performance of the estimator by simulation.
    Date: 2021–11
  4. By: de Bresser, Jochem (Tilburg University, Center For Economic Research); Knoef, Marike; van Ooijen, Raun
    Keywords: long-term care insurance; home care; Willingness to pay; discrete choice experiment; saving motives; health expectations
    Date: 2021
  5. By: Tepe, Johanna; Lemken, Dominic
    Abstract: The growing prevalence of ultra-processed foods in Uganda is driving the double burden of malnutrition. Overweight and obesity are on the rise while the intake of micronutrients remains insufficient. Simultaneously, jackfruits that are rich in minerals and vitamins remain underutilized. Its large size, sticky insides, and high perishability make it challenging to handle and cause high postharvest losses. In an attempt to address both issues, the present study investigates the potential of long-lasting, nutritious, and sugar-free jackfruit-nut-bars (JNBs) as a channel to enhance and promote the utilization of jackfruit, and provide healthier options of processed foods. To analyze consumer demand for the products, we first assess the sensory perception of four different JNBs at a university campus in Uganda. We then use Van Westendorp’s price sensitivity meter to elicit consumers’ willingness to pay (WTP) and identify factors shaping their demand. The results show that the sensory properties are, on average, rated positively, and price preferences are similar to established snacks. Based on our findings, we conclude that JNBs provide an option to enhance jackfruit utilization. A random effects model shows that WTP increases with sweetness, age, and frequency of snack consumption that JNBs can potentially substitute. These findings help future development and promotion of processed jackfruit products.
    Keywords: Community/Rural/Urban Development, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Marketing
    Date: 2021–12–15
  6. By: Yu, Jianyu
    Keywords: Risk and Uncertainty
    Date: 2021–08
  7. By: Stefano Ceolotto (Department of Economics, Trinity College Dublin); Eleanor Denny (Department of Economics, Trinity College Dublin)
    Abstract: It has been shown that individuals often underinvest in energy efficiency despite net benefits over the longer term. One possible explanation is that agents do not understand and/or cannot interpret energy information when provided in physical units, as in most energy efficiency labels. Prior studies have investigated the effect of reframing energy information reported on energy labels into monetary units. Outcomes are mixed, and it is not clear whether this is due to the use of different products, different methods or because studies were conducted in different countries with different energy prices and labelling standards. This paper overcomes that ambiguity by testing the effect of alternative ways to provide energy consumption information using the same experiment in a multi-country setting. Results show that the specific national context in which an intervention is implemented is a key determinant of its effectiveness. Personalised energy expenditures increase the willingness-to-pay for energy efficiency in the United Kingdom, whereas monetary information has a negative impact in Canada. No significant effect is detected in Ireland and the United States. In addition, it seems that providing monetary information crowds out individuals who would buy a more efficient product for environmental reasons.
    Keywords: Energy Efficiency Labels, Discrete Choice Experiment, Tumble dryers, Framing Effect
    JEL: Q41 Q48 Q49 D04 D10 D12 D90
    Date: 2021–05

This nep-dcm issue is ©2021 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.