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on Discrete Choice Models |
| By: | Arkarup Basu Mallik (ISI, Kolkata); Mihir Bhattacharya (Ashoka University); Anuj Bhowmik (ISI, Kolkata) |
| Abstract: | We consider an attribute-based model of stochastic choice with variable attention to different attributes. We characterize stochastic choice rules with attributes and limited attention (SCRALA). Under SCRALA, the probability with which an alternative (say, x) is chosen is the product of the probabilities with which attention is drawn by the attributes where x is ranked highest and the (weighted) probability with which attention is not drawn by the attributes under which x is not the highest ranked. Our results are characterized by axioms defined on observable choice data and all the attention parameters are uniquely identified. |
| Keywords: | attributes; limited attention; stochastic choice |
| Date: | 2024–08–23 |
| URL: | https://d.repec.org/n?u=RePEc:ash:wpaper:120 |
| By: | Héctor M. Núñez; Adán L. Martínez-Cruz; Jaime Sainz-Santamaría |
| Abstract: | Mexico City, that boasts the first place in electricity consumption among urban centers in the country, is actively advancing its energy transition by promoting renewable energies and tapping into its potential for solar and bio-energy. As households in emerging economies drive global energy demand, this study explores preferences of Mexico City's residents. Using a discrete choice experiment, 940 residents were presented with energy contracts featuring renewable energy sources, green job creation in the energy sector, renewable energy percentages in the energy mix, and electricity prices. Estimates reveal that respondents are willing to pay a 19.5% premium over the average price per kilowatt-hour if the energy source were exclusively solar and created 1000 green jobs. These findings offer insights for other megacities with similar challenges and renewable potential in pursuing a just energy transition. |
| Keywords: | Renewable energies;just energy transition;green jobs;middle-income households;Mexico City |
| JEL: | Q42 Q48 Q51 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:bdm:wpaper:2025-05 |
| By: | Arkarup Basu Mallik (ISI Kolkata); Mihir Bhattacharya (Ashoka University); Anuj Bhowmik (ISI Kolkata) |
| Abstract: | We provide a model of individual choice in which the decision maker is constrained and chooses from a subset of the available alternatives given a set of attributes. We introduce an attribute competition filter which provides conditions under which an alternative continues to be considered from a subset of alternatives and a subset of attributes. We use two axioms to characterize a rational choice function from the consideration sets, Single Reversal in Attributes (SRA) and Contraction Consistency with Fixed Attributes (CCFA). The former only allows for a single reversal in choice from a subset of the attributes, while the latter requires choices to be contraction consistent. We show that a choice function from consideration sets under attributes is rationalizable if and only if the choice function satisfies SRA and CCFA. In another section, we consider the dual problem: The alternatives considered are exogenously visible i.e. all the alternatives are considered and limited attention is paid to the attributes available while the preference relation is over the set of alternatives via individual attributes. JEL classification: D00, D01 |
| Keywords: | limited attention, attributes, choice reversals |
| Date: | 2024–11–27 |
| URL: | https://d.repec.org/n?u=RePEc:ash:wpaper:135 |
| By: | Michael Peneder; Sandra Bilek-Steindl; Susanne Bärenthaler-Sieber (WIFO); Julia Bock-Schappelwein; Alexandros Charos (WIFO) |
| Abstract: | Online platforms have evolved into powerful programmable architectures that enable heterogeneous groups of autonomous but interdependent users to interact. Based on a stratified sample of 1, 380 companies from a newly developed enterprise survey in Austria, the analysis aims to reduce the lack of comprehensive empirical research of the general patterns and regularities of business use of online platforms across different markets and industries. We conduct a comprehensive set of (ordered) probit estimations on the determinants of platform adoption, their interaction with platform competition, their joint impact on platform users, and their overall satisfaction and willingness to pay (more) for platform services. The analysis provides ample empirical evidence of the importance of rivalry between platforms for delivering its value proposition to all participants: for instance, the estimates show that more competing platforms imply (i) greater ease of switching, (ii) a greater likelihood of negotiable and favourable terms of use, and (iii) associate positively with a greater impact on the number of business partners, revenue per customer or product variety. In turn, (iv) better impacts for business users go hand in hand with their higher satisfaction, which directly links to (v) a higher willingness to pay (more) for platform services. Conversely, the ease of switching to an alternative platform associates with a significantly lower willingness to pay (more). Competition between platforms thus increases the bargaining power of users and allows them to claim a larger share of the platform's value proposition. |
| Date: | 2025–04–06 |
| URL: | https://d.repec.org/n?u=RePEc:wfo:wpaper:y:2025:i:701 |
| By: | Arkarup Basu Mallik (ISI Kolkata); Mihir Bhattacharya (Ashoka University) |
| Abstract: | We consider a model of preference aggregation when a single public good has to be chosen. We do not impose any restrictions on the preferences. We show the impossibility of contraction consistent (CC), anonymous and Pareto efficient social choice functions. We provide a characterization of the priority based social choice function (Priority Rule) which satisfies a weaker version of consistency called Efficient Dominance (ED). ED is a Weak Axiom of Revealed Preference (WARP) type of consistency criterion over the set of Pareto efficient alternatives. We show that the Priority Rule is the only social choice function that satisfies Pareto efficiency and Efficient Dominance. |
| Date: | 2025–03–06 |
| URL: | https://d.repec.org/n?u=RePEc:ash:wpaper:142 |
| By: | Iris Kesternich; Marjolein Van Damme; Han Ye |
| Abstract: | One reason gender pay gaps persist is that women receive more of their total compensation through amenities. Since wages, but not amenities, increase retirement incomes, this may translate into gender pension gaps. Using a discrete choice experiment we investigate whether the valuation for amenities changes when the trade-off with pension income is made salient. We find that women value amenities more than men. Beliefs about the effect of wage changes on pension income do not show large gender differences. However, women change their choices much more strongly than men when reminded about the effects of current choices on pension income. |
| Keywords: | gender, pension gap, amenities, work meaning, workplace flexibility, hypothetical choice experiment, salience, beliefs |
| JEL: | D91 J16 J26 J32 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_600v2 |
| By: | Westrich, Zarah |
| Abstract: | Standard economic models view labour supply decisions as individual utility maximisation balancing the trade-off between income and leisure. In contrast, we focus on the social context as a central determinant and analyse how colleagues' working hours shape individual working hours preferences. Our analysis is based on a representative survey of employees in Germany that we conducted in October 2024 (N = 4, 450). Combining novel survey experiment with a quantitative text analysis of an open-ended survey question enables us to identify a causal mechanism and to provide contextual insights into the role of social context for the formation of working hours preferences. We show that colleagues' working hours causally affect working hours preferences. The reasons given by the respondents for choosing the stated working hours, by contrast, are primarily personal. This shows that preferences are socially determined, even if they are rationalised in individualistic terms. Our findings emphasise the importance of collective action for working time policy and highlight methodological challenges that need to be considered when analysing and interpreting working time preferences. |
| Keywords: | working hours, social comparisons, preference formation |
| JEL: | B55 D9 J22 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifsowp:315193 |
| By: | Müller, Lars (Center for Mathematical Economics, Bielefeld University); Karos, Dominik (Center for Mathematical Economics, Bielefeld University) |
| Abstract: | This paper analyzes the welfare effects of private and unilateral disclosure of sensi- tive information in a sequential bargaining context. We consider a model where two sellers each propose a take-it-or-leave-it price for a homogeneous good to a single buyer. The buyer accepts or rejects the first seller’s offer before the second seller proposes her price. Crucially, the second seller might learn the first seller’s price and whether it was accepted, allowing her to update her belief about the buyer’s willingness to pay and optimize her pricing strategy. The welfare effects caused by this information exchange are evaluated under general conditions. We show that it benefits the buyer if a rejection is revealed but might harm him if an acceptance is revealed. Additionally, the information exchange improves the societal welfare by reducing inefficiencies and promoting additional trade. This paper strengthens the theoretical framework for assessing the welfare effects of information exchanges by offering new insights and providing tools to assess causality for alleged damages. |
| Keywords: | Information Exchange, Collusion, Unawareness |
| Date: | 2025–04–16 |
| URL: | https://d.repec.org/n?u=RePEc:bie:wpaper:703 |
| By: | Gessner, Johannes; Habla, Wolfgang; Rübenacker, Benjamin; Wagner, Ulrich J. |
| Abstract: | Many European companies face the challenge of lowering CO2 emissions from their company car fleets. A promising lever is to increase the notoriously low electric usage of Plug-in Hybrid Electric Vehicles (PHEVs). This paper examines whether home charging infrastructure can help achieve these goals. We leverage quasi-experimental variation in the delivery and installation of home chargers to quantify the impact of this technology on energy use and CO2 emissions of PHEV company cars held by 856 employees of a large German company. Since fuel and electricity expenditures for these cars are covered by the employer, home charging mainly changes the non-monetary costs to an employee. We find that access to home charging increases electricity consumption by 317.9 (±23.3) kWh per quarter and decreases fuel consumption by 97.97 (±36.5) liters, reducing CO2 emissions by 38%. Moreover, access to home charging increases the employee's propensity to choose a Battery Electric Vehicle (BEV) upon renewal of the lease by 28.4 (±25.6) percentage points. We use these estimates to compute the private levelized abatement costs of home chargers for a range of scenarios characterizing the diffusion of BEVs and the effect of the program on vehicle choice. With current tax-inclusive energy prices, home chargers break even for the company within eight to 16 years. |
| Keywords: | home charging, charging infrastructure, plug-in hybrid and battery electric vehicles, company cars |
| JEL: | D12 L91 Q52 R42 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:315495 |
| By: | Jang, Tae-Seok; Sacht, Stephen |
| Abstract: | Contrary to claims in studies on financial economics, a sparse database often obscures the identification of parameters in macroeconomic models. These identification problems originate from the poorly defined mapping between a structural model and reduced-form parameters. Hence, researchers rely on prominent estimation methods, such as Bayesian approaches, which require sound knowledge of prior distributions on parameters. These approaches, however, are characterized by a flat likelihood and/or a posterior distribution driven mainly by prior information. To alleviate identification issues, we apply approximate Bayesian computation combined with the choice of specific moment conditions. This estimation approach not only allows for circumventing high dimensional likelihood functions but also avoids parameter identification problems given the use of a bootstrap method. Our estimation method is successfully applied to a hybrid version of the New Keynesian model. |
| Abstract: | Entgegen den Behauptungen in Studien zur Finanzökonomie erschwert eine spärliche Datenbasis oft die Identifizierung von Parametern in makroökonomischen Modellen. Diese Identifizierungsprobleme entstehen durch die schlecht definierte Abbildung zwischen einem strukturellen Modell und dessen Parametern in reduzierter Form. Daher greifen Forscher auf bekannte Methoden wie die Bayesianische Schätzung zurück, die eine fundierte Kenntnis der a-priori-Verteilungen der Parameter erfordert. Solche Ansätze zeichnen sich jedoch durch eine flache Likelihood-Verteilung und/oder eine, hauptsächlich durch a-priori-Informationen getriebene, posteriore Verteilung aus. Um Identifizierungsprobleme zu mildern, verwenden wir in diese Studie die Approximative Bayesianische Berechnungsmethode in Kombination mit der Wahl spezifischer Momente-Bedingungen. Dieser Schätzansatz ermöglicht nicht nur die Umgehung hochdimensionaler Likelihood-Funktionen, sondern vermeidet durch die Verwendung einer Bootstrap-Methode auch Probleme bei der Parameteridentifizierung. Unsere Schätzmethode wird erfolgreich auf eine hybride Version des Neukeynesianischen Modells angewendet. |
| Keywords: | Approximate Bayesian Computation, Identification, Moment Conditions, New-Keynesian model |
| JEL: | C11 C14 E12 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:hwwiwp:315485 |
| By: | Lan, Trần Thị Ngọc; Trung, Tran Thanh |
| Abstract: | The aim of this research is to show a theoretical review of studies on psychosocial factors affecting the evaluation and willingness to purchase foreign goods in the past; Identify research gap related to evaluation and willingness to consume foreign goods; Propose a conceptual framework for Vietnamese consumers' willingness to consume foreign goods. The results of this research show that psychosocial factors affecting the willingness to consume foreign goods of consumers in previous studies are classified into six groups of factors: consumer affinity, consumer animosity, consumer ethnocentrism, patriotism, consumer cosmopolitanism, and product judgments. Besides, this study is to help local business managers identify a few factors affecting the willingness of Vietnamese consumers to buy foreign products and understand them. Clearly understand the level and direction of impact of each factor. On that basis, it is possible to make marketing policies to help improve the competitiveness of enterprises in the domestic market compared to products imported. Based on social identity theory, cognitive dissonance theory, realistic group conflict theory, and related studies, the research topic has built a research model of psychological factors. Social impact on the evaluation and willingness to consume foreign products. |
| Date: | 2023–03–17 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:khjv2_v1 |
| By: | Samo, Andrew |
| Abstract: | Meaningful work is an important yet complex organizational construct. Although meaningful work has historically been conceptualized as a simple unidimensional construct, current meaningful work theory considers meaningful work to be phenomenologically rich and complex. Unfortunately, the typical latent variable modeling approaches used to model meaningful work may bias results because they do not account for the psychometric complexity characterizing meaningful work. Towards this, the present study used the complementary person- and variable-centric approach to model the psychometric structure of meaningful work as operationalized by two popular measures (i.e., the Work and Meaning Inventory [WAMI] and the Comprehensive Meaningful Work Scale [CMWS]). Results provided evidence that the CMWS measures the complexity of meaningful work (i.e., multidimensional, hierarchical, and idiosyncratic nature). Although the more complex WAMI models had good model fit, there was evidence for unidimensionality across archival samples and a newly collected sample. These results suggest that different operationalizations of meaningful work may capture different aspects of the construct. Additionally, the person-centric LPA uncovered a 3-Profile solution of meaningful work for the CMWS, and these profiles exhibited different patterns of relations with work and life outcomes. Together, the results suggest that researchers should be modeling the psychometric complexity of meaningful work. Implications and future directions are discussed. |
| Date: | 2025–03–01 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:txawv_v1 |