nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2025–07–28
seven papers chosen by
Edoardo Marcucci, Università degli studi Roma Tre


  1. Do others’ health count for peanuts? Health, market returns, and pro-sociality By Abate, Gashaw T.; Bernard, Tanguy; Deutschmann, Joshua; Fall, Fatou
  2. Willingness to Compete in Dirty Competitions By Thomas Buser; Sahar Sangi
  3. Bounded Rationality with Subjective Evaluations in Enlivened but Truncated Decision Trees By Hammond, Peter J
  4. Bounded Rationality with Subjective Evaluations in Enlivened but Truncated Decision Trees By Hammond, Peter J
  5. Spatial patterns in the formation of economic preferences By Chowdhury, Shyamal K.; Puente-Beccar, Manuela; Schildberg-Hörisch, Hannah; Schneider, Sebastian O.; Sutter, Matthias
  6. Supporting the small market gardening sector in France: Comparison of two policy options By Pauline Lécole; Raphaële Préget; Sophie Thoyer
  7. Modelling the green knowledge production function with large panel data econometrics By Niccolò Murtas

  1. By: Abate, Gashaw T.; Bernard, Tanguy; Deutschmann, Joshua; Fall, Fatou
    Abstract: Individuals often make decisions considering both private returns and welfare impacts on others. Food safety decisions by smallholder agricultural producers exemplify this choice, particularly in low-income countries where farmers often consume some of the food crops they produce and sell or donate the rest. We conduct a lab-in-the-field experiment with peanuts producers in Senegal to study the decision to invest in food safety information, exogenously varying the degree of private returns (monetary or health-wise) and welfare impacts on others. Producers are willing to pay real money for food safety information even absent the potential for private returns, but willingness to pay increases with the potential for private returns. A randomized information treatment significantly increases willingness to pay in all scenarios. Our results shed light on the complex interplay between altruism and economic decisions in the presence of externalities, and point to the potential of timely and targeted information to address food safety issues.
    Keywords: food safety; health; groundnuts; aflatoxins; smallholders; returns; Senegal; Africa; Sub-Saharan Africa; Western Africa
    Date: 2025–07–07
    URL: https://d.repec.org/n?u=RePEc:fpr:gsspwp:175569
  2. By: Thomas Buser (University of Amsterdam and Tinbergen Institute); Sahar Sangi (University of Amsterdam)
    Abstract: Competitive environments often leave room for “dirty†practices such as sabotage, retaliation, or dishonesty. We use an online experiment to document aggregate levels and individual differences in the willingness to engage in dirty competition and in the willingness to enter competitions where the opponent may play dirty. We then use the experimental data to validate a set of survey questions that capture willingness to engage in dirty competition above general willingness to compete. We elicit these questions in a representative survey panel and show that willingness to engage in dirty competition is a strong predictor of holding a management or supervisory position and of working in the private – versus the public – sector, but also of worse self-esteem, worse social relationships, and increased feelings of guilt and shame. Men, younger people, and lower-educated people are on average more willing to engage in dirty competition.
    Keywords: preferences, personality, sabotage, career choice
    JEL: C91 J24
    Date: 2025–02–07
    URL: https://d.repec.org/n?u=RePEc:tin:wpaper:20250007
  3. By: Hammond, Peter J (University of Warwick)
    Abstract: In normative models a decision-maker is usually assumed to be Bayesian rational, and so to maximize subjective expected utility, within a complete and correctly specified decision model. Following the discussion in Hammond (2007) of Schumpeter's (1911, 1934) concept of entrepreneurship, as well as Shackle's (1953) concept of potential surprise, we consider enlivened decision trees whose growth over time cannot be accurately modelled in full detail. An enlivened decision tree involves more severe limitations than a mis-specified model, unforeseen contingencies, or unawareness, all of which are typically modelled with reference to a universal state space large enough to encompass any decision model that an agent may consider. We consider three motivating examples based on: (i) Homer's classic tale of Odysseus and the Sirens; (ii) a two-period linear-quadratic model of portfolio choice; (iii) the game of Chess. Though our novel framework transcends standard notions of risk or uncertainty, for finite decision trees that may be truncated because of bounded rationality, an extended form of Bayesian rationality is still possible, with real-valued subjective evaluations instead of consequences attached to some terminal nodes. Moreover, these subjective evaluations underlie, for example, the kind of Monte Carlo tree search algorithm used by recent chess-playing software packages.
    Keywords: Bounded Bayesian rationality ; consequentialist decision theory ; Schumpeterian entrepreneurship ; Shackle's potential surprise ; truncated decision trees ; enlivened decision trees ; subjective evaluation of continuation subtrees ; Monte Carlo tree search. JEL Codes: D11 ; D63 ; D81 ; D91
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:wrk:warwec:1568
  4. By: Hammond, Peter J (University of Warwick)
    Abstract: In normative models a decision-maker is usually assumed to be Bayesian rational, and so to maximize subjective expected utility, within a complete and correctly specified decision model. Following the discussion in Hammond (2007) of Schumpeter's (1911, 1934) concept of entrepreneurship, as well as Shackle's (1953) concept of potential surprise, we consider enlivened decision trees whose growth over time cannot be accurately modelled in full detail. An enlivened decision tree involves more severe limitations than a mis-specified model, unforeseen contingencies, or unawareness, all of which are typically modelled with reference to a universal state space large enough to encompass any decision model that an agent may consider. We consider three motivating examples based on: (i) Homer's classic tale of Odysseus and the Sirens; (ii) a two-period linear-quadratic model of portfolio choice; (iii) the game of Chess. Though our novel framework transcends standard notions of risk or uncertainty, for finite decision trees that may be truncated because of bounded rationality, an extended form of Bayesian rationality is still possible, with real-valued subjective evaluations instead of consequences attached to some terminal nodes. Moreover, these subjective evaluations underlie, for example, the kind of Monte Carlo tree search algorithm used by recent chess-playing software packages.
    Keywords: Bounded Bayesian rationality ; consequentialist decision theory ; Schumpeterian entrepreneurship ; Shackle's potential surprise ; truncated decision trees ; enlivened decision trees ; subjective evaluation of continuation subtrees ; Monte Carlo tree search. JEL Codes: D11 ; D63 ; D81 ; D91
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:wrk:wcreta:93
  5. By: Chowdhury, Shyamal K.; Puente-Beccar, Manuela; Schildberg-Hörisch, Hannah; Schneider, Sebastian O.; Sutter, Matthias
    Abstract: We investigate how strongly the local environment beyond the family can contribute to understanding the formation of children's economic preferences. Building on precise geolocation data for around 6000 children, we use fixed effects, spatial autoregressive models and Kriging to capture the relation between the local environment and children's preferences. The spatial models explain a considerable part of so far unexplained variation in preferences. Moreover, the "spatial stability" of preferences exceeds the village level. Our results highlight the importance of the local environment for the formation of children's preferences, which we quantify to be as large as that of parental preferences.
    Keywords: skill formation, spatial models, kriging, local environment, patience, risk attitudes, prosociality, experiments with children, Bangladesh
    JEL: D01 C21 C99
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:dicedp:321893
  6. By: Pauline Lécole (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - 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 - UM - Université de Montpellier); Raphaële Préget (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - 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 - UM - Université de Montpellier); Sophie Thoyer (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - 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 - UM - Université de Montpellier)
    Abstract: France's Common Agricultural Policy Strategic Plan introduces a coupled aid program to support small-scale market gardening farms. This study, using data from a discrete choice experiment and national-level simulations, compares the projected outcomes of this new program-which has strict eligibility requirements-with those of an alternative scheme inspired by the CAP's Small Farmers Scheme (SFS), where farms self-select to receive lump-sum payments. Results indicate that the SFS+ (including environmental and employment conditions) may effectively promote agro-ecological transition in the market gardening sector and could serve as a valuable recommendation for revisions to France's strategic plan and those of other Member States..
    Keywords: Common agricultural policy, Small farms, Discrete choice experiments, Coupled support, Lump-sum payment, Market gardening
    Date: 2025–07–14
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-05163348
  7. By: Niccolò Murtas (University of Ferrara)
    Abstract: This study estimates an aggregate green knowledge production function (GKPF) for 19 OECD countries from 1981 to 2012, using panel-data econometric methods to address spatial spillovers and unobserved heterogeneity. Both Cobb-Douglas and translog functional forms are evaluated with multiple estimators, including standard fixed and random effects models, pooled and mean group common correlated effects (CCE) estimators, and random-trend models to account for shared upward trends among variables. The regression analysis examines the relationship between green patenting and key determinants such as R&D expenditure, human capital, and environmental policy indicators. The results consistently show a robust positive effect of domestic R&D, whereas the impacts of other factors exhibit greater variability. Methodologically, the findings highlight the sensitivity of coefficient estimates to unobserved heterogeneity and the choice of functional form.
    Keywords: Green innovation, knowledge production function, panel data, spatial spillovers
    Date: 2025–07
    URL: https://d.repec.org/n?u=RePEc:srt:wpaper:0725

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