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on Discrete Choice Models |
| By: | Reynaert, Mathias; Xu, Wenxuan; Zhao, Hanlin |
| Abstract: | When making choices, agents often must form expectations about option attributes in the choice set. The information used to form these expectations is usually unobserved by researchers. We develop a discrete choice model where agents make choices with heterogeneous information sets that are unobserved. We demonstrate that preferences can be point-identified through a finite mixture approximation of the unobserved information structure, or set-identified using knowledge from a single agent type. These approaches are compatible with both individual- and market-level data. Applications include replicating Dickstein and Morales (2018) and estimating consumer valuations for future fuel costs without assumptions on expectation formation. |
| Keywords: | Discrete choice; unobserved information; mixture model; set identification |
| JEL: | C5 C8 D8 |
| Date: | 2024–09–13 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:129713 |
| By: | Alyssa Carlson (Department of Economics, University of Missouri-Columbia) |
| Abstract: | Previously, identification of triangular random coefficient models required a restriction on the dimension of the first stage heterogeneity or independence assumptions across the different sources of the heterogeneity. This note proposes a new identification strategy that does not rely on either of these restrictions but rather assumes conditional means have a conditional linear projection representation in order to construct “correction functions†to address endogeneity and gain identification of the average partial effect. This identification strategy allows for both continuous and discrete instruments. Finally, the proposed identification method is illustrated in estimating the returns to education. |
| Keywords: | Endogeneity, Control Function, Random Coefficient, Conditional Linear Projection |
| JEL: | C3 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:umc:wpaper:2409 |
| By: | Shen Li; Yuyang Zhang; Zhaolin Ren; Claire Liang; Na Li; Julie A. Shah |
| Abstract: | Binary human choice feedback is widely used in interactive preference learning for its simplicity, but it provides limited information about preference strength. To overcome this limitation, we leverage human response times, which inversely correlate with preference strength, as complementary information. Our work integrates the EZ-diffusion model, which jointly models human choices and response times, into preference-based linear bandits. We introduce a computationally efficient utility estimator that reformulates the utility estimation problem using both choices and response times as a linear regression problem. Theoretical and empirical comparisons with traditional choice-only estimators reveal that for queries with strong preferences ("easy" queries), choices alone provide limited information, while response times offer valuable complementary information about preference strength. As a result, incorporating response times makes easy queries more useful. We demonstrate this advantage in the fixed-budget best-arm identification problem, with simulations based on three real-world datasets, consistently showing accelerated learning when response times are incorporated. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.05798 |
| By: | Voll, Kyra; Höcker, Martin Christian; Bachtal, Yassien Nico; Pfnür, Andreas; Schlereth, Christian |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:149746 |
| By: | Mogens Fosgerau; Nikolaj Nielsen; Mads Paulsen; Thomas Kj{\ae}r Rasmussen; Rui Yao |
| Abstract: | This paper considers substitution patterns in the perturbed utility route choice model. We provide a general result that determines the marginal change in link flows following a marginal change in link costs across the network. We give a general condition on the network structure under which all paths are necessarily substitutes and an example in which some paths are complements. The presence of complementarity contradicts a result in a previous paper in this journal; we point out and correct the error. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.08347 |
| By: | Ro’i Zultan (BGU); Aniol Llorente-Saguer (Department of Economics, Queen Mary University of London); Santiago Oliveros (Department of Economics, University of Bristol) |
| Keywords: | information acquisition, representative heuristic, base-rate neglect, laboratory experiment |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:bgu:wpaper:2411 |
| By: | Ying Chen; Paul Cheshire; Xiangqing Wang; You-Sin Wang |
| Abstract: | Home delivery reduced the value of cities as locations to access variety in durable consumption goods. Food delivery services (FDS) are doing the same for restaurants. Home-streaming of sports or home-delivered restaurant meals are close but not perfect substitutes for the live experiences. Here we investigate the impact of FDS in Beijing. Employing a Bartik IV strategy, we find that a one standard deviation increase in the number of FDS-accessible restaurants generates a 7.1% increase in property values. The premium is estimated as equivalent to half a top-quality school. FDS appears to be changing how cities deliver welfare from consumption services and so modifies urban land rents and housing attributes. Its value and that of restaurant variety increase with household size but seems to reduce the value of well-equipped kitchens. |
| Keywords: | food delivery services, impact of choice in consumer services, hedonic analysis, changing urban consumption patterns |
| Date: | 2024–09–11 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2031 |
| By: | Tao, Guannan; Zheng, Feifan; Li, Wei |
| Abstract: | In the digital age, users in China are increasingly inclined to adopt taskoriented chatbots for task-driven work. This study, based on the Task Technology Fit model combined with the UTAUT model, collected 700 valid questionnaires. It employed Amos 24.0 for descriptive statistical analysis, reliability and validity testing, and correlation analysis of the collected data. The Harman single-factor test method was used to examine common method bias, and the Bootstrap method and simple slope analysis method were applied to verify hypotheses. SPSS 28.0 was used for multiple linear regression analysis and mediation effect analysis to test hypotheses. The study empirically investigated the factors influencing users' behavior in using task-oriented chatbots in China, focusing on seven impact factors: two dependent variables of AI communication anthropomorphism and interactivity, one independent variable of behavior, two mediating variables of performance expectancy and usage intention, and three moderating variables of task characteristics, technology characteristics, and task-technology fit. The results indicate that the factors of AI anthropomorphism and interactivity have a significant impact on the residents of the Yangtze River Delta region using task-driven Chatbots for task-driven work. Moreover, through the mediating effects and moderating roles of other variables, a complex networked structure is formed. The adaptability of technology and the individual's willingness to use it in varying scenarios together constitute the influencing factors of behavior. |
| Keywords: | Task-Driven chatbots, User Behavior, Influencing Factors, TTF Model, UTAUT Model |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302512 |
| By: | Jonathan Lafky; Robin Ng |
| Abstract: | We examine how product ratings are interpreted in the presence of heterogeneous preferences among both raters and consumers. Raters with altruistic motives should rate for the benefit of future consumers, however an ambiguity arises when preferences are heterogeneous. Multiple equilibria exist in which ratings may reflect the preferences of raters or the preferences of future consumers. In an online experiment, we examine how ratings are selected by raters and interpreted by consumers, and how information about rater preferences or product attributes can influence equilibrium selection. We show how both raters and consumers update their evaluation of what a rating represents in each environment, doing so in similar ways. |
| Keywords: | Ratings and Reviews, Altruism |
| JEL: | C91 D64 D83 L86 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_594 |
| By: | Lambert, Claudia; Larkou, Chloe; Pancaro, Cosimo; Pellicani, Antonella; Sintonen, Meri |
| Abstract: | By applying a structural demand model to unique consumer-level survey data from the euro area, we assess how different CBDC design options, combined with individual (revealed) preferences, influence the potential demand for a digital euro. Estimating the demand for a digital euro, we find that if it were unconstrained, it could range, in steady state, between 3-28% of household liquid assets or €0.12 - €1.11 trillion, depending on whether consumers would perceive the digital euro to be more cash-like or deposit-like. With an illustrative €3, 000 holding limit per person, it could instead range between 2-9% or €0.10 -€0.38 trillion. Privacy, automatic funding, and instant settlement raise its potential demand. JEL Classification: E41, E50, E58 |
| Keywords: | Central bank digital currency, demand estimation, design attributes, structural model |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20242980 |
| By: | Mark Voorneveld |
| Abstract: | Fourier-Motzkin elimination, a standard method for solving systems of linear inequalities, leads to an elementary, short, and self-contained proof of von Neumann's minimax theorem. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.11504 |
| By: | Slupphaug, KJell (Statistics Norway (SSB)); Mehmetoglu, Mehmet; Mittner, Matthias (University of Tromsø) |
| Abstract: | The estimation of interaction and quadratic effects in Structural Equation Models (SEMs) is a complex task in psychometrics. Latent product term (LPT) models, initially developed for interaction effects between latent variables, are also used to model quadratic effects. Despite over 30 years of research, no consensus has emerged on the best method for modeling interactions in SEMs, partly due to efforts to simplify existing approaches for broader accessibility. LPT models are categorized into Product Indicator (PI) and Distribution Analytic (DA) approaches. PI methods are conceptually simple but often sacrifice accuracy due to necessary simplifications, making them error-prone and difficult to implement manually. In contrast, DA methods, such as Latent Moderated Structural Equations (LMS) and Quasi Maximum Likelihood (QML), provide more accurate estimates in simulations but are computationally intensive and less accessible due to limited implementations. We introduce modsem, an R package that simplifies the estimation of interaction and quadratic effects in SEMs. modsem supports various methods, including PI, LMS, and QML, and extends them to models with multiple endogenous variables. It integrates seamlessly with the popular lavaan syntax, enhancing accessibility for researchers. We demonstrate modsem’s utility with applications to the Theory of Planned Behaviour and PISA 2006 data, highlighting its effectiveness in estimating complex models. Future work will focus on validating and refining LMS and QML approaches, and exploring alternative methods like Bayesian and Structural After Measurement (SAM) approaches. |
| Date: | 2024–09–02 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:h3rpw |
| By: | Mauricio Calani; Lucas Rosso |
| Abstract: | This paper studies how differences in portfolio choice across households help explain the highly unequal wealth distribution seen in the data. It has been well documented that participation rates in investment in risky assets are substantially smaller than the ones predicted in standard models of portfolio choice. Also, both participation rates and risky shares are highly increasing in wealth. However, both features are usually absent in workhorse models of wealth accumulation. We introduce portfolio choice and adjustment frictions into an otherwise standard model of household saving behavior. Calibrating it to U.S. household-level data, we show that the model is able to provide a better fit of the wealth distribution while being consistent with well-known facts of households’ portfolio choices. In particular, the model explains roughly half of the gap between top wealth shares predicted by traditional models of wealth accumulation (e.g. Aiyagari, 1994) and the data. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:chb:bcchwp:1016 |
| By: | Otsu, Taisuke; Tanaka, Shiori |
| Abstract: | This paper proposes an empirical likelihood inference method for the Oaxaca-Blinder decompositions. In contrast to the conventional Wald statistic using the delta method, our approach circumvents the linearization errors and estimation of the variance terms. Furthermore, the shape of the resulting empirical likelihood confidence set is determined flexibly by data. Simulation results illustrate usefulness of the proposed inference method. |
| Keywords: | empirical likelihood; Oaxaca–Blinder decomposition; two-sample test |
| JEL: | C14 |
| Date: | 2022–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:115982 |
| By: | Claude DIEBOLT; Magali Jaoul-Grammare |
| Abstract: | School choice factors play a different role according to gender. According to the literature, women have “adaptative exceptations” whereas men have so called “static exceptations”. Men and women adopt also different attitudes to expected payoffs, to risk or towards their level of aspiration. Finally, women generally associate their career plans with their life plans, which influences their choice of studies. But, what about social prestige, i.e. does the prestige of profession play an identical role in the demand for education among men and women? More specifically and over the long term, is the phenomenon of substitutability between prestigious career paths equally true for men and women? Finally, does the medical sphere regulate the male and female education systems equally? The ambition of this contribution is to contribute to the discussion using an unpublished historical dataset for France in the long 20th century. |
| Keywords: | Study choice, Gender, Prestige of professions, France. |
| JEL: | I21 J24 N34 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2024-37 |
| By: | L. Elisa Celis; Amit Kumar; Nisheeth K. Vishnoi; Andrew Xu |
| Abstract: | This paper considers the scenario in which there are multiple institutions, each with a limited capacity for candidates, and candidates, each with preferences over the institutions. A central entity evaluates the utility of each candidate to the institutions, and the goal is to select candidates for each institution in a way that maximizes utility while also considering the candidates' preferences. The paper focuses on the setting in which candidates are divided into multiple groups and the observed utilities of candidates in some groups are biased--systematically lower than their true utilities. The first result is that, in these biased settings, prior algorithms can lead to selections with sub-optimal true utility and significant discrepancies in the fraction of candidates from each group that get their preferred choices. Subsequently, an algorithm is presented along with proof that it produces selections that achieve near-optimal group fairness with respect to preferences while also nearly maximizing the true utility under distributional assumptions. Further, extensive empirical validation of these results in real-world and synthetic settings, in which the distributional assumptions may not hold, are presented. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.04897 |
| By: | Manaka, Kyoko; Kikuchi, Hinata; Nakamura, Akihiro |
| Abstract: | Efforts to promote the widespread adoption of electric vehicles (EVs), which contribute to the realization of a carbon-neutral society, are being discussed. According to the Japan Automobile Dealers Association, the share of EVs in new passenger car sales was approximately 1.16% in the period ending December 2024, with a total share of about 1.85%. Past surveys related to Battery Electric Vehicles (BEVs)indicate that factors such as driving range and vehicle specifications, as well as the availability of charging facilities, are key to their widespread adoption (Pysalska et al., 2022; Phillipsen et al., 2020; Khan et al., 2017; Kudoh and Motose, 2010). There are different types of EV charging facilities, such as regular recharging facilities which take several hours to charge for a 100 km drive and fast charging facilities which take about 30 minutes to charge for a 100 km drive. The installation cost of the former is relatively low, and it can be installed in individual homes using subsidies. In contrast, the installation cost of the latter ranges from 10 to 20 million yen, making it impractical for individual homes and used by the public in a manner similar to current gasoline stations. Additionally, there are Super-fast charging facilities called Superchargers, dedicated to Tesla vehicles, which allow significantly faster charging than fast charging facilities. Currently, fast charging facilities are mainly installed in locations such as automobile dealerships, convenience stores, roadside stations, and expressways (SA/PA), with 40% of installations at automobile dealerships, while only 10% are at convenience stores and roadside stations/highways (Source: March 2023, e-mobility power charging spot list). On the other hand, regular recharging facilities are installed mainly in destinations with long stay times such as hotels and shopping malls, in addition to individual home installations. The necessity for adequate recharging facilities is evident as BEV usage can only become widespread if users have convenient access to recharging options. In Japan, over 29, 000 recharging facilities exist, with approximately 70% being regular recharging facilities and 30% being fast recharging facilities. It is relatively easy to install in detached houses but challenging in apartment buildings. According to the "Housing and Land Statistics Survey" by the Statistics Bureau of Japan in 2018, 53.6% of households live in detached houses, and 43.5% live in apartment buildings, with the percentage of apartment dwellers reaching 71% in Tokyo. This higher ratio in urban areas presents a challenge to the widespread installation of charging facilities. While installing regular recharging facilities in individual homes is relatively easy, in apartment-type residences, it is necessary to obtain approval from the residents' association, which is organized by the inhabitants, to install charging facilities in communal parking areas. these households face significant constraints in installing personal recharging stations in their parking spaces. This is one reason why apartment dwellers hesitate to purchase BEVs. Charging facilities remain idle when not in use and are suitable for shared use. In fact, public fast recharging facilities are used as shared infrastructure. While regular recharging facilities are generally installed in individual homes and are not typically considered for shared use, the advancement of ICT and the widespread ownership of smartphones suggest that shared use of regular recharging facilities in individual homes would be quite feasible. Previous studies highlight the critical role of ICT in optimizing various services and systems, including transportation. For instance, Benevolo et al. (2016) and Jittrapirom et al. (2017) emphasize how ICT can enhance smart mobility and user-centered mobility services. Breidbach and Brodie (2017) discuss the sharing economy's reliance on ICT for facilitating value co-creation and engagement. Billhardt et al. (2019) demonstrate how ICT improves the matching efficiency of cab dispatch services. These studies would indicate that ICT may contribute the matching efficiency of recharging facilities online. In Japan, currently, it is possible to search for recharging facilities online, but there are not many facilities that can be reserved via apps. If recharging facilities become more widely available, and if it becomes possible to check their real-time availability and make reservations using a smartphone app, this is likely to increase the willingness to purchase EVs. Especially in Japanese urban areas with a high ratio of apartment dwellers, the efficient use of infrastructure, including regular recharging facilities, is essential for high EV adoption rates. Based on this awareness, this study aims to explore the impact of enhanced availability of charging facilities, such as through sharing and online reservations, on the intention to purchase BEVs in urban areas of Japan with high apartment dwelling ratios. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302467 |