nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2024‒09‒02
seventeen papers chosen by
Edoardo Marcucci, Università degli studi Roma Tre


  1. Car dependency in the urban margins: The influence of perceived accessibility on mode choice By Lola Blandin; Giovanni Vecchio; Ricardo Hurtubia; Ignacio Tiznado-Aitken
  2. Simulation in discrete choice models evaluation: SDCM, a simulation tool for performance evaluation of DCMs By Amirreza Talebi
  3. Willingness to Pay for Improved Planting Materials: An Application of Experimental Auction in Sri Lanka By Athapaththu, Poorni; Weerahewa, Jeevika
  4. Harmful choices By Angelo Petralia
  5. Can Destigmatizing Mental Health Increase Willingness to Seek Help? Experimental Evidence from Nepal By Lindsey Lacey; Nirajana Mishra; Priya Mukherjee; Nikhilesh Prakash; Nishith Prakash; Diane Quinn; Shwetlena Sabarwal; Deepak Saraswat
  6. Valuation of travel time savings in the presence of simultaneous activities By Jacek Pawlak; John Polak
  7. What drives smallholder market participation and channel choice decision? Insights from paddy markets in India By Chauhan, Sonalee; Varma, Poornima; Singh, Sukhpal
  8. The association between consideration of future consequences and food intake is mediated by food choice motives in a French adult population By Marc Bénard; Margaux Robert; Caroline Méjean; Benjamin Allès; Emmanuelle Kesse-Guyot; Pauline Paolassini Guesnier; France Bellisle; Fabrice Etilé; Gérard Reach; Serge Hercberg; Mathilde Touvier; Sandrine Péneau
  9. Diversity in Choice as Majorization By Federico Echenique; Teddy Mekonnen; M. Bumin Yenmez
  10. Investigating the coexistence of psychological drivers and deterrents of consumer acceptance of cultured meat hamburger patties By Tsvakirai, Chiedza Zvirurami; Nalley, Lawton Lanier
  11. Unpacking Overconfident Behavior When Betting on Oneself By Abdellaoui, Mohammed; Bleichrodt, Han; Gutierrez, Cédric
  12. Conduct Parameter Estimation in Homogeneous Goods Markets with Equilibrium Existence and Uniqueness Conditions: The Case of Log-linear Specification By Yuri Matsumura; Suguru Otani
  13. Starting Small: Prioritizing Safety over Efficacy in Randomized Experiments Using the Exact Finite Sample Likelihood By Neil Christy; A. E. Kowalski
  14. Close to Home: Analyzing Urban Consumer Behavior and Consumption Space in Seoul By Hyoji Choi; Frank Neffke; Donghyeon Yu; Bogang Jun
  15. American Micromobility Panel (Part 2): Transit Connection, Mode Substitution, and VMT Reduction By Fukushige, Tatsuya; Fitch-Polse, Dillon T.
  16. Energy Labels, House Prices, and Efficiency Misreporting By Lu, Xinyu; Spaenjers, Christophe
  17. Assessing Downstream and Upstream Stakeholders’ Preferences for Sustainability Attributes in the Tomato Value Chain By Molist , Adrià Menéndez i; Kallas, Zein; Fuentes , Omar Vicente Guadarrama

  1. By: Lola Blandin (UNCTAD - United Nations Conference on Trade and Development - United Nations Conference on Trade and Development, GAEL - Laboratoire d'Economie Appliquée = Grenoble Applied Economics Laboratory - UPMF - Université Pierre Mendès France - Grenoble 2 - INRA - Institut National de la Recherche Agronomique); Giovanni Vecchio (UC - Pontificia Universidad Católica de Chile, IEUT - Instituto de Estudios Urbanos y Territoriales - Facultad de Arquitectura, Diseño y Estudios Urbanos); Ricardo Hurtubia (IEUT - Instituto de Estudios Urbanos y Territoriales - Facultad de Arquitectura, Diseño y Estudios Urbanos, CEDEUS SANTIAGO CHL - Partenaires IRSTEA - IRSTEA - Institut national de recherche en sciences et technologies pour l'environnement et l'agriculture); Ignacio Tiznado-Aitken (University of Toronto)
    Abstract: Car dependence is a dimension of transport poverty whose subjective components have been limitedly explored. Research on car dependence highlights the incidence of transport costs, assesses the multidimensional vulnerability of car-dependency and the possibility to access valued opportunities. However, people's perceptions and their perceived ability to access destinations may better reflect the way they move in car dependent settings. In this paper, we aim to examine what are the determinants of perceived accessibility and to which extent perceived accessibility influences mode choices in such areas. Based on a survey carried out in four peripheral and periurban municipalities in the Metropolitan Region of Santiago de Chile, we examine how subjective perceptions of accessibility contribute to explain modal choice in the outskirts. Results show that perceived accessibility has a negative net impact on the utilities for both car and public transport, which means that a low perceived accessibility increases the likelihood of choosing motorized modes. Moreover, residents from peripheral municipalities tend to perceive a higher accessibility than households from periurban areas, who are excluded from the public transport system. These findings show the importance of providing nearby opportunities and convenient alternatives to limit car dependency, especially in periurban areas.
    Keywords: Mode choice, Perceived accessibility, Travel behavior, Car dependence, Discrete choice, discrete choice mode choice perceived accessibility travel behavior periphery car dependence, discrete choice, mode choice, perceived accessibility, travel behavior, periphery, car dependence
    Date: 2024–06
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-04659649
  2. By: Amirreza Talebi
    Abstract: Discrete choice models (DCMs) have been widely utilized in various scientific fields, especially economics, for many years. These models consider a stochastic environment influencing each decision maker's choices. Extensive research has shown that the agents' socioeconomic characteristics, the chosen options' properties, and the conditions characterizing the decision-making environment all impact these models. However, the complex interactions between these factors, confidentiality concerns, time constraints, and costs, have made real experimentation impractical and undesirable. To address this, simulations have gained significant popularity among academics, allowing the study of these models in a controlled setting using simulated data. This paper presents multidisciplinary research to bridge the gap between DCMs, experimental design, and simulation. By reviewing related literature, the authors explore these interconnected areas. We then introduce a simulation method integrated with experimental design to generate synthetic data based on behavioral models of agents. A utility function is used to describe the developed simulation tool. The paper investigates the discrepancy between simulated data and real-world data.
    Date: 2024–07
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2407.17014
  3. By: Athapaththu, Poorni; Weerahewa, Jeevika
    Abstract: This study evaluated the willingness-to pay (WTP) for quality mango planting materials of TomEJC cultivar and identified the variables that affect WTP and degree of adoption of the technology. A second price sealed bid auction was conducted among villagers in Thirappane, Anuradhapura district, Sri Lanka to determine WTP and a Heckman two-stage model was estimated to ascertain the determinants of WTP. The respondents were randomly divided in to two groups and one group was given information on growing of TomEJC before the experiment was conducted. The socio-economic characteristics of the respondents were gathered using a structured questionnaire. The findings showed that the pooled sample's mean bid for TomEJC planting materials was LKR 287.03 per plant and the WTP of group that received advance notice was higher by LKR 151.62. Heckman model first-stage results indicated that the decision to adopt was positively and significantly influenced by household type, mango availability in the home garden, education level, and desire to begin commercial mango cultivation. The second-stage results revealed that WTP was positively & significantly influenced by information provision and average monthly income. These results suggest that the first step in promoting new technology will be to raise awareness targeting the non-poor farmers.
    Keywords: Community/Rural/Urban Development, Institutional and Behavioral Economics, Research and Development/Tech Change/Emerging Technologies
    Date: 2024–08–07
    URL: https://d.repec.org/n?u=RePEc:ags:cfcp15:344265
  4. By: Angelo Petralia
    Abstract: We investigate the choice behavior of a decision maker (DM) who harms herself, by maximizing some distortion of her true preference, in which the first $i$ alternatives are moved to the bottom, in a reversed order. The deterministic declination of our pattern has no empirical power, but it allows to define a degree of self-punishment, which measures the extent of the denial of pleasure adopted by the DM in her decision. We analyze irrational choices that display the lowest degree of self-punishment, and a characterization of them is provided. Moreover, we characterize the choice behavior that exhibits the highest degree of self-punishment, and we show that it comprises almost all choices. We also characterize stochastic self-punishment, which collects all the Random Utility Models (RUMs) whose support is restricted to the harmful distortions of some preference. Full identification of the DM's preference and randomization over its harmful distortions is allowed if each alternative is selected from the ground set with probability greater than zero. Finally, the degree of self-punishment of harmful stochastic choices is characterized.
    Date: 2024–08
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2408.01317
  5. By: Lindsey Lacey; Nirajana Mishra; Priya Mukherjee; Nikhilesh Prakash; Nishith Prakash; Diane Quinn; Shwetlena Sabarwal; Deepak Saraswat
    Abstract: We conducted a randomized control trial to study the impact of two information messages aimed at reducing the stigma associated with mental illness on the willingness to seek mental healthcare among adults in Nepal. The first intervention shares information about the prevalence of mental health issues and the efficacy of treatment. The second intervention shares information about the mental health struggles of a Nepali celebrity and how he benefited from treatment. We find three results. First, compared to a no-information control group, both interventions increase participants’ stated willingness to seek mental health treatment. This effect is driven by participants with high personal and anticipated stigma, less severe symptoms of depression and anxiety, and who hold strong beliefs about conformity to masculinity. Second, the impact on participants’ stated willingness to seek mental health treatment mirrors their willingness to pay for counseling. Third, participants are, on average, more likely to report willingness to seek help when the enumerator is female.
    Keywords: mental health, stigma, prejudice, seeking help, celebrity, Nepal
    JEL: I12 I15
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:ces:ceswps:_11241
  6. By: Jacek Pawlak; John Polak
    Abstract: Time sharing between activities remains an indispensable part of everyday activity pattern. However, the issue has not yet been fully acknowledged within the existing time allocation models, potentially resulting in inaccuracies in valuing travel time savings. Therefore this study is aimed at addressing this gap by investigating the potential impact of introducing time sharing within such a framework, as well as factors determining it as represented by travel activities. In doing so, time constraint in the time allocation model of Small was modified to enable sharing the same time interval between different activities. The resulting expression indicated that such an augmentation could lead to lower estimates of value of time as a resource. On the other hand, empirical research based on the data from the National Passenger Survey 2004 used for calibrating cross-nested logit model indicated a number of factors affecting the choice of travel activities. It was discovered that significant include possession of equipment allowing particular activities, e.g. newspaper, paperwork or ICT devices, companionship, gender, length of the journey, frequency of using the service, possibility of working on the train, journey planning in advance, first class travel, termination of the trip in central London, peak-time travel and availability of seating.
    Date: 2024–07
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2407.08312
  7. By: Chauhan, Sonalee; Varma, Poornima; Singh, Sukhpal
    Abstract: Strengthening smallholder market linkages is critical for transitioning from high-risk and low revenue generating subsistence farming to more commercial and profitable agriculture. However, market access for smallholders in India presents a wide range of challenges such as inadequate access to credit and output markets, low marketable surplus and high transaction costs, information asymmetry, high-quality requirements, and presence of interlocked markets. This study explores the key factors influencing smallholders market participation and extent of participation. It also examines determinants of smallholder’s choice of paddy marketing channels available in the study region. Simultaneous equations and multinomial logit models are used to conduct the analysis for the cross-sectional data of paddy smallholders in Uttar Pradesh. Results indicate that smallholder resource endowment namely access to credit and extension services, farm size, access to off-farm income sources and transportation facilities; transaction costs factors such as market distance, paddy quantity and payment time along with membership of farmer organization influence market participation and channel choice decision Findings stress the need for formulating policies that focus on improving transportation and road infrastructure, extension services and promote financial inclusion of resource poor smallholders. Institutional support in ensuring timely payment can facilitate smallholders’ inclusion in profitable marketing channels. Furthermore, policies aimed at promoting farmer producer organizations and strengthening public procurement is recommended.
    Keywords: Marketing
    Date: 2024–08–07
    URL: https://d.repec.org/n?u=RePEc:ags:cfcp15:344325
  8. By: Marc Bénard (EREN [CRESS - U1153 / UMR_A 1125] - Nutritional Epidemiology Research Team | Equipe de Recherche en Epidémiologie Nutritionnelle - Université Sorbonne Paris Nord - CRESS (U1153 / UMR_A 1125) - Centre for Research in Epidemiology and Statistics | Centre de Recherche Épidémiologie et Statistiques - CNAM - Conservatoire National des Arts et Métiers [CNAM] - USPC - Université Sorbonne Paris Cité - INSERM - Institut National de la Santé et de la Recherche Médicale - UPCité - Université Paris Cité - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Margaux Robert (EREN [CRESS - U1153 / UMR_A 1125] - Nutritional Epidemiology Research Team | Equipe de Recherche en Epidémiologie Nutritionnelle - Université Sorbonne Paris Nord - CRESS (U1153 / UMR_A 1125) - Centre for Research in Epidemiology and Statistics | Centre de Recherche Épidémiologie et Statistiques - CNAM - Conservatoire National des Arts et Métiers [CNAM] - USPC - Université Sorbonne Paris Cité - INSERM - Institut National de la Santé et de la Recherche Médicale - UPCité - Université Paris Cité - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Caroline Méjean (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement, EREN [CRESS - U1153 / UMR_A 1125] - Nutritional Epidemiology Research Team | Equipe de Recherche en Epidémiologie Nutritionnelle - Université Sorbonne Paris Nord - CRESS (U1153 / UMR_A 1125) - Centre for Research in Epidemiology and Statistics | Centre de Recherche Épidémiologie et Statistiques - CNAM - Conservatoire National des Arts et Métiers [CNAM] - USPC - Université Sorbonne Paris Cité - INSERM - Institut National de la Santé et de la Recherche Médicale - UPCité - Université Paris Cité - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Benjamin Allès (EREN [CRESS - U1153 / UMR_A 1125] - Nutritional Epidemiology Research Team | Equipe de Recherche en Epidémiologie Nutritionnelle - Université Sorbonne Paris Nord - CRESS (U1153 / UMR_A 1125) - Centre for Research in Epidemiology and Statistics | Centre de Recherche Épidémiologie et Statistiques - CNAM - Conservatoire National des Arts et Métiers [CNAM] - USPC - Université Sorbonne Paris Cité - INSERM - Institut National de la Santé et de la Recherche Médicale - UPCité - Université Paris Cité - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Emmanuelle Kesse-Guyot (EREN [CRESS - U1153 / UMR_A 1125] - Nutritional Epidemiology Research Team | Equipe de Recherche en Epidémiologie Nutritionnelle - Université Sorbonne Paris Nord - CRESS (U1153 / UMR_A 1125) - Centre for Research in Epidemiology and Statistics | Centre de Recherche Épidémiologie et Statistiques - CNAM - Conservatoire National des Arts et Métiers [CNAM] - USPC - Université Sorbonne Paris Cité - INSERM - Institut National de la Santé et de la Recherche Médicale - UPCité - Université Paris Cité - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Pauline Paolassini Guesnier (EREN [CRESS - U1153 / UMR_A 1125] - Nutritional Epidemiology Research Team | Equipe de Recherche en Epidémiologie Nutritionnelle - Université Sorbonne Paris Nord - CRESS (U1153 / UMR_A 1125) - Centre for Research in Epidemiology and Statistics | Centre de Recherche Épidémiologie et Statistiques - CNAM - Conservatoire National des Arts et Métiers [CNAM] - USPC - Université Sorbonne Paris Cité - INSERM - Institut National de la Santé et de la Recherche Médicale - UPCité - Université Paris Cité - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); France Bellisle (EREN [CRESS - U1153 / UMR_A 1125] - Nutritional Epidemiology Research Team | Equipe de Recherche en Epidémiologie Nutritionnelle - Université Sorbonne Paris Nord - CRESS (U1153 / UMR_A 1125) - Centre for Research in Epidemiology and Statistics | Centre de Recherche Épidémiologie et Statistiques - CNAM - Conservatoire National des Arts et Métiers [CNAM] - USPC - Université Sorbonne Paris Cité - INSERM - Institut National de la Santé et de la Recherche Médicale - UPCité - Université Paris Cité - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Fabrice Etilé (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Gérard Reach (Hôpital Avicenne [AP-HP] - AP-HP - Assistance publique - Hôpitaux de Paris (AP-HP)); Serge Hercberg (EREN [CRESS - U1153 / UMR_A 1125] - Nutritional Epidemiology Research Team | Equipe de Recherche en Epidémiologie Nutritionnelle - Université Sorbonne Paris Nord - CRESS (U1153 / UMR_A 1125) - Centre for Research in Epidemiology and Statistics | Centre de Recherche Épidémiologie et Statistiques - CNAM - Conservatoire National des Arts et Métiers [CNAM] - USPC - Université Sorbonne Paris Cité - INSERM - Institut National de la Santé et de la Recherche Médicale - UPCité - Université Paris Cité - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Hôpital Avicenne [AP-HP] - AP-HP - Assistance publique - Hôpitaux de Paris (AP-HP)); Mathilde Touvier (EREN [CRESS - U1153 / UMR_A 1125] - Nutritional Epidemiology Research Team | Equipe de Recherche en Epidémiologie Nutritionnelle - Université Sorbonne Paris Nord - CRESS (U1153 / UMR_A 1125) - Centre for Research in Epidemiology and Statistics | Centre de Recherche Épidémiologie et Statistiques - CNAM - Conservatoire National des Arts et Métiers [CNAM] - USPC - Université Sorbonne Paris Cité - INSERM - Institut National de la Santé et de la Recherche Médicale - UPCité - Université Paris Cité - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Sandrine Péneau (EREN [CRESS - U1153 / UMR_A 1125] - Nutritional Epidemiology Research Team | Equipe de Recherche en Epidémiologie Nutritionnelle - Université Sorbonne Paris Nord - CRESS (U1153 / UMR_A 1125) - Centre for Research in Epidemiology and Statistics | Centre de Recherche Épidémiologie et Statistiques - CNAM - Conservatoire National des Arts et Métiers [CNAM] - USPC - Université Sorbonne Paris Cité - INSERM - Institut National de la Santé et de la Recherche Médicale - UPCité - Université Paris Cité - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Objectives: Consideration of future consequences (CFC) distinguishes individuals who adopt behaviors based on immediate needs and concerns from individuals who consider the future consequences of their behaviors. We aimed to assess the association between CFC and diet, and testing the mediating role of food choice motives on this relationship. Design: Individuals (age≥18 years) completed the CFC-12 questionnaire in 2014, at least three 24-h dietary records, and a food choice motive questionnaire. A multiple mediator analysis allowed to assess the mediating effect of food choice motives on the cross-sectional association between CFC and diet, adjusted for socio-demographic factors. Setting: Data from the NutriNet-Santé cohort study. Participants: 27, 330 participants. Results: CFC was associated with all food choice motives (P < 0.001), with the strongest positive associations for avoidance for environmental reasons, absence of contaminants and health motives, and the strongest negative associations for innovation and convenience). Positive total effects were found between CFC and the consumption of healthy food groups (fruits and vegetables, whole-grain foods, legumes); and negative total effects for alcohol, meat and poultry and processed meat (P < 0.001). CFC was positively associated with diet quality (P < 0.001). Across food groups, major mediators of these relationships were higher health (8.4-32.6%), higher environmental (13.7-22.1 %) and lower innovation (7.3-25.1 %) concerns. Conclusions: CFC was associated with healthier dietary intake, essentially mediated by a greater motivation of future-oriented participants for self-centered and altruistic outcomes, including health and environment. Focusing on the awareness of future benefits in public health interventions might lead to healthier dietary behaviors.
    Keywords: Consideration of future consequences, Food intake, Food choice motives, Adults, France
    Date: 2024–02
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-04447169
  9. By: Federico Echenique; Teddy Mekonnen; M. Bumin Yenmez
    Abstract: We use majorization to model comparative diversity in school choice. A population of agents is more diverse than another population of agents if its distribution over groups is less concentrated: being less concentrated takes a specific mathematical meaning borrowed from the theory of majorization. We adapt the standard notion of majorization in order to favor arbitrary distributional objectives, such as population-level distributions over race/ethnicity or socioeconomic status. With school admissions in mind, we axiomatically characterize choice rules that are consistent with modified majorization, and constitute a principled method for admitting a diverse population of students into a school. Two important advantages of our approach is that majorization provides a natural notion of diversity, and that our axioms are independent of any exogenous priority ordering. We compare our choice rule to the leading proposal in the literature, ``reserves and quotas, '' and find ours to be more flexible.
    Date: 2024–07
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2407.17589
  10. By: Tsvakirai, Chiedza Zvirurami; Nalley, Lawton Lanier
    Abstract: Consumers’ willingness to contribute to the development of sustainable food systems has led to a growth in the use of faux meat in producing hamburger patties. This study investigates whether consumers’ explicit and implicit perceptions of cultured meat will assist in encouraging the acceptance of cultured meat in this market. We measured consumers’ perceptions using opinion statements and the level of agreement was ranked on a Likert scale. Composite indices were extracted from this data and these were regressed against consumers’ willingness to try cultured meat burger patties. The study found that the implicit perceptions (worldviews) promoted both neophobic and neophilic attitudes while explicit (product-specific) perceptions indicated that consumers’ rejection may be driven by concerns of anticipated social, cultural and economic disruptions. The study’s results suggest tactful marketing approaches that can utilise implicit perceptions to promote consumer acceptance. Other results indicated the areas of concern that should be addressed to facilitate acceptance and the population groups that could be targeted as early adopters.
    Keywords: Agribusiness, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Marketing
    Date: 2024–08–07
    URL: https://d.repec.org/n?u=RePEc:ags:cfcp15:344257
  11. By: Abdellaoui, Mohammed (HEC Paris); Bleichrodt, Han (Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Australian National University (ANU) - School of Economics); Gutierrez, Cédric (Bocconi University - Department of Management and Technology)
    Abstract: Overconfident behavior, the excessive willingness to bet on one’s performance, may be driven by optimistic beliefs and/or ambiguity attitudes. Separating these factors is key for understanding and correcting overconfident behavior, as they may call for different corrective actions. We present a method to do so, which we implement in two incentivized experiments. The first experiment shows the importance of ambiguity attitudes for overconfident behavior. Optimistic ambiguity attitudes (ambiguity seeking) counterbalanced the effect of pessimistic beliefs, leading to neither over- nor underconfident behavior. The second experiment applies our method in contexts where overconfident behavior is expected to vary: easy vs. hard tasks. Our results showed that task difficulty affected both beliefs and ambiguity attitudes. However, while beliefs were more optimistic for relative performance (rank) and more pessimistic for absolute performance (score) on easy tasks compared to hard tasks, ambiguity attitudes were always more optimistic on easy tasks for both absolute and relative performance. Our findings show the subtle interplay between beliefs and ambiguity attitudes: they can reinforce or offset each other, depending on the context, increasing or lowering overconfident behavior.
    Keywords: overconfidence; subjective expected utility; beliefs measurement; ambiguity attitudes; hard-easy effect.
    JEL: D81 D83 D91
    Date: 2023–05–23
    URL: https://d.repec.org/n?u=RePEc:ebg:heccah:1484
  12. By: Yuri Matsumura; Suguru Otani
    Abstract: We propose a constrained generalized method of moments estimator (GMM) incorporating theoretical conditions for the unique existence of equilibrium prices for estimating conduct parameters in a log-linear model with homogeneous goods markets. First, we derive such conditions. Second, Monte Carlo simulations confirm that in a log-linear model, incorporating the conditions resolves the problems of implausibly low or negative values of conduct parameters.
    Date: 2024–07
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2407.12422
  13. By: Neil Christy; A. E. Kowalski
    Abstract: We use the exact finite sample likelihood and statistical decision theory to answer questions of ``why?'' and ``what should you have done?'' using data from randomized experiments and a utility function that prioritizes safety over efficacy. We propose a finite sample Bayesian decision rule and a finite sample maximum likelihood decision rule. We show that in finite samples from 2 to 50, it is possible for these rules to achieve better performance according to established maximin and maximum regret criteria than a rule based on the Boole-Frechet-Hoeffding bounds. We also propose a finite sample maximum likelihood criterion. We apply our rules and criterion to an actual clinical trial that yielded a promising estimate of efficacy, and our results point to safety as a reason for why results were mixed in subsequent trials.
    Date: 2024–07
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2407.18206
  14. By: Hyoji Choi; Frank Neffke; Donghyeon Yu; Bogang Jun
    Abstract: This study explores how the relatedness density of amenities influences consumer buying patterns, focusing on multi-purpose shopping preferences. Using Seoul's credit card data from 2018 to 2023, we find a clear preference for shopping at amenities close to consumers' residences, particularly for trips within a 2 km radius, where relatedness density significantly influences purchasing decisions. The COVID-19 pandemic initially reduced this effect at shorter distances but rebounded in 2023, suggesting a resilient return to pre-pandemic patterns, which vary over regions. Our findings highlight the resilience of local shopping preferences despite economic disruptions, underscoring the importance of amenity-relatedness in urban consumer behavior.
    Date: 2024–07
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2407.20587
  15. By: Fukushige, Tatsuya; Fitch-Polse, Dillon T.
    Abstract: This study examined the sustainability of shared micromobility services using data from 48 cities in the US using a 21-day smartphone travel diary and survey data. Population-weighted analysis indicated a much smaller share of transit connection than in prior reported studies, with more reliable data. However methodological decisions could be a cause for such discrepancies suggesting a sensitivity analysis of this same data may be a good next research step. Results also indicated median VMT reduced per micromobility trip to be roughly 0.15 miles for e-scooter share trips and 0.25 miles for bike share (including e-bike) trips. Models of mode substitution confirm prior evidence of factors affecting car substitution including trip distance as the strongest factor. This study also proposed two frameworks for building a sketch planning tool for examining VMT reduction from future micromobility services. This tool could help cities and regions better plan for the micromobility services to achieve real VMT and GHG reduction goals. While more research is needed to employ this framework, it helps motivate a series of additional research topics to inform a decision support tool for shared micromobility planning. View the NCST Project Webpage
    Keywords: Social and Behavioral Sciences, Micromobility, shared mobility, bicycles, e-scooters, e-bikes, mode substitution, transit connection, vehicle miles traveled
    Date: 2024–08–01
    URL: https://d.repec.org/n?u=RePEc:cdl:itsdav:qt4qr5t2tw
  16. By: Lu, Xinyu (HEC Paris); Spaenjers, Christophe (University of Colorado Boulder - Leeds School of Business)
    Abstract: We propose that home buyers and sellers rely on “heuristic hedonic models”: simplified representations of properties’ utility-bearing attributes. We test this hypothesis using public administrative data from France, where properties’ (continuous) estimated energy consumption is summarized by a (discrete) energy label on a scale from A to G. We document substantial misreporting-driven bunching of energy efficiency scores just below the relevant cut-off values, which points to labels’ perceived importance. Estimates of donut RDD models show that house prices drop sharply when energy consumption crosses the boundary to a lower rating. Moreover, we observe larger price discontinuities in areas where the relation between energy efficiency and house values is harder to estimate. Finally, the discontinuities also show up in home sellers’ list prices, suggesting that a simple buyer inattention story is insufficient to explain our findings.
    Keywords: energy efficiency; energy labels; house prices; hedonic models; bunching.
    JEL: D12 D83 Q58 R12 R28
    Date: 2023–04–17
    URL: https://d.repec.org/n?u=RePEc:ebg:heccah:1483
  17. By: Molist , Adrià Menéndez i; Kallas, Zein; Fuentes , Omar Vicente Guadarrama
    Abstract: Effectively implementing innovations in agri-food supply chains (AFSCs) is contingent upon stakeholders’ preferences. Using the analytic hierarchy process (AHP), the objective of this research was to ascertain the degree of willingness among farmers, consumers, and various stakeholders (including processing companies, restaurants, and retailers) in the tomato supply chain of Catalonia (Spain) to shorten the chain and promote local procurement. Based on a set of social, economic, and environmental criteria encompassing sustainability in AFSCs, the results showed that economic factors, particularly profitability and affordability, were the key driving factors in the decisions of stakeholders. However, the considerable importance placed on strategic attributes, including local production, environmental sustainability, and product quality, particularly among consumers, seemed to present a chance to advocate for sustainable alternatives, such as short food supply chains (SFSCs). The AHP methodology facilitates differentiation with respect to the criteria of the decision-making process and serves as a valuable instrument for evaluating the reception of innovations within the AFSC and categorizing the stakeholders who exhibit the greatest interest in them. In order to improve the sustainability of agri-food systems, our findings may be incorporated into strategic plans developed by policymakers.
    Keywords: Demand and Price Analysis, Environmental Economics and Policy, Industrial Organization
    Date: 2024–08–07
    URL: https://d.repec.org/n?u=RePEc:ags:cfcp15:344299

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