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on Discrete Choice Models |
| By: | Marina Kholod; Nikita Mokrenko |
| Abstract: | Consumer choice modeling takes center stage as we delve into understanding how personal preferences of decision makers (customers) for products influence demand at the level of the individual. The contemporary choice theory is built upon the characteristics of the decision maker, alternatives available for the choice of the decision maker, the attributes of the available alternatives and decision rules that the decision maker uses to make a choice. The choice set in our research is represented by six major brands (products) of laundry detergents in the Japanese market. We use the panel data of the purchases of 98 households to which we apply the hierarchical probit model, facilitated by a Markov Chain Monte Carlo simulation (MCMC) in order to evaluate the brand values of six brands. The applied model also allows us to evaluate the tangible and intangible brand values. These evaluated metrics help us to assess the brands based on their tangible and intangible characteristics. Moreover, consumer choice modeling also provides a framework for assessing the environmental performance of laundry detergent brands as the model uses the information on components (physical attributes) of laundry detergents. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.16927&r=dcm |
| By: | Vladimir I. Danilov |
| Abstract: | The concept of sequential choice functions is introduced and studied. This concept applies to the reduction of the problem of stable matchings with sequential workers to a situation where the workers are linear. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.00748&r=dcm |
| By: | Arpita Ghosh (Department of Economics, University of Exeter); Brendon McConnell (Department of Economics, City University of London); Jaime Millán-Quijano (Navarra Center for International Development, Universidad de Navarra) |
| Abstract: | We study the housing market response to a country-wide policy that mandated the provision of energy efficiency information with all marketing material at the time of listing. Using the near universe of housing sales in England and Wales, we match in the energy efficiency status of the property from Energy Performance Certificates data. We develop a conceptual framework that makes clear the key channels through which the policy may impact house prices - an information-driven salience channel and a market valuation channel. We provide causal evidence of homebuyers' willingness to pay for a higher energy rated property, documenting a 1-3% premium to a higher energy efficiency rating at the national level, and a 3-6% premium in the London market. We explore a set of key margins along which homebuyers can respond, ruling out as explanations both a consumption channel and an information channel. We conclude that the elevated EPC-rating premiums are driven by a market valuation channel, a conclusion for which we provide empirical support. Such a conclusion is of key policy importance, as it suggests market-facing energy efficiency regulations can increase demand for more energy efficient housing, even in absence of any discernible demand-side consumption or information effects. |
| Keywords: | hedonic price models, energy performance certificates, real estate |
| JEL: | R38 Q48 K32 |
| Date: | 2024–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:exe:wpaper:2402&r=dcm |
| By: | Shinsuke KYOI (Research Institute for Humanity and Nature); Kengo IWATA (Kyoto Institute of Economic Research, Kyoto University); Yoshiaki USHIFUSA (Faculty of Economics, The University of Kitakyushu) |
| Abstract: | The purpose of this study is to investigate local citizens' recognition of offshore wind power and to evaluate their preferences for offshore wind turbines in four prefectures in Japan, namely, Akita, Chiba, Fukuoka, and Nagasaki, where is promoted areas of offshore wind power. Although the development of offshore wind power is an important measure for Japan to achieve a decarbonized society by 2050, local opposition is one of the main barriers to promoting offshore wind power. This study conducts an online survey and choice experiment with 2400 respondents from the four prefectures. The survey reveals that 55% of respondents agree with the promotion of offshore wind power. Those who opposes the offshore wind power concerns about the durability of turbines and future removal plans. Moreover, the mixed logit model shows that people prefer a greater distance from turbines, a larger number of turbines but not too many, and less impact on marine ecosystems. The model also shows the heterogeneous preferences among individuals and prefectures. Furthermore, the ordered logit model demonstrates that those who recognize the possible contributions of offshore wind turbines are likely to accept the development of offshore wind turbines while those who are concerned about the negative impact of turbines on the marine landscape and removal plans seem to oppose the turbines. The study highlights the importance of tailoring offshore wind farm strategies to local concerns to effectively build consensus among stakeholders. |
| Keywords: | Social acceptance; Offshore wind power; Preference heterogeneity; Choice experiment; Carbon neutral |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:kyo:wpaper:repec:kyo:wpaper:1101&r=dcm |
| By: | Matthew Ashenfarb; Matthew Kotchen |
| Abstract: | This paper provides stated preference (SP) estimates of the average social cost of carbon (ASCC) for use in evaluation of the benefits and costs of climate policy. Based on a U.S. nationally representative survey, we find an average individual willingness-to-pay (WTP) of $1, 116 per year to keep global warming less than 2°C by 2100 compared to a business-as-usual temperature change. Combining the WTP estimate with population projections and assessments of the required emission reductions, we find a domestic ASCC of $8 per tonne of carbon dioxide (CO2). Applying a benefits transfer approach to infer WTP in other countries, we obtain an estimate of the global ASCC of $39 per tonne, with a 95-percent confidence interval of $32-$48. The estimate is insensitive to the discount rate, but it does vary with assumptions about the income elasticity of WTP and the rate of change in marginal abatement costs. Reasonable scenarios create a range of estimates between $12-$118 per tonne. We also examine the impact of distributional weighting based on the elasticity of the marginal utility of income, providing distributionally-weighted estimates of the global ASCC for use in all countries. We argue that a SP estimate of the ASCC is an useful complement to existing estimates of the marginal social cost of carbon (SCC) based on different valuation approaches. |
| JEL: | H4 Q51 Q54 Q58 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32043&r=dcm |