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on Discrete Choice Models |
| By: | Zhen, Shihang; Xia, Xianli; Huang, Luchen; Cao, Yihan; Fu, Hanliang; Ren, Yanjun |
| Abstract: | With the prominence of nutrition-related health issues worldwide, functional food is supposed to be an efficient way to address this challenge by achieving its nutrition and health benefits. However, whether consumers are willing to pay (WTP) for high-nutritional value foods of this kind and what is the role of consumers’ risk preferences in their WTPs are unclear. This study employs a discrete choice experiment (DCE) to investigate the effect of risk preferences on consumers’ preferences and WTPs for functional food, focusing on four attributes of dairy products: origin, organic label, functionality and price. We also seek to understand the physiological mechanisms underlying this effect by a lab experiment using eye-tracking technology. The results show that consumers have various preferences and WTPs for different attributes of milk, but they are reluctant to pay for functional milk. Compared to consumers with low-risk preferences, consumers with high-risk preferences are more willing to purchase functional milk. The evidence from eye-tracking experiments indicates that visual attention to the attributes considered positively correlates with their consumption preference. Consumers with high-risk preferences tend to pay more attention to the functional attribute and therefore have a higher prob- ability of purchasing functional milk. This study implies that consumers’ risk preferences should be considered when promoting consumers to purchase functional food, as different consumers have significantly distinct preferences. |
| Keywords: | Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:iaae24:344293 |
| By: | Liu, Pengcheng; Xie, Qing; You, Yi; Dong, Qingqing |
| Abstract: | Consumers are presented with increasingly difficult choice tasks and are experiencing more choice overload during the decision-making process. Based on the emotion-imbued choice model and incorporating subjective state consequences into the framework of experienced utility, this research constructed a systematic scale to measure choice overload in several decision-making stages. This research conducted three experiments using liquid milk as a consumption product to test whether choice overload would be influenced by increasing the number of attributes, adding similar options, and information nudges, and whether this effect would be heterogeneous in consumer characteristics. Results indicate that more attributes and the addition of similar options would increase the perceived difficulty of choice and result in negative emotions, while information nudges might lessen choice overload and help consumers make decisions. Besides, consumers’ pursuit of maximization also determines their perceived choice overload; maximizers are more likely to experience choice overload than satisficers. |
| Keywords: | Consumer/Household Economics, Food Consumption/Nutrition/Food Safety |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:iaae24:344272 |
| By: | Akoko, Peter Obuon; Gathungu, Edith; De Groote, Hugo |
| Abstract: | Maize is most common staple food in Sub-Saharan Africa but in most cases, preserved using the traditional drying method which expose maize to severe losses and quality deterioration. Improved maize drying methods are therefore considered an alternative technique to dry maize. Studies from developed countries have found improved dryers to be more efficient and sustainable, however, developing countries like Kenya are still yet to adopt these technologies. Evaluating smallholder maize farmers’ willingness to pay for improved maize dryers in Njoro Sub-County explains this slow adoption rate. This paper sampled 306 small-scale maize farmers and characterized them based on their willingness to use the dryers. Double bounded choice model was then used to determine farmers’ willingness to pay. The results show that commercial maize production (P- value =0.078, β=13.92958), cooperative membership (P-value=0.053, β=24.40269), higher maize prices (P-value =0.022, β=0.0276285) and subjective norms (P-value=0.005, β=23.75356) positively influenced willingness to pay, while factors like familiarity (P-value=0.044, β=- 34.41718) and liking of the maize dryer (P-value=0.051, β=-16.46909) had a negative impact. The findings emphasize the importance of considering education, farming experience, land size, cooperative membership, access to extension services, and commercial market channels when marketing improved maize dryers. The ideal adopters are farmers with advanced education, years of farming experience, larger land size, cooperative membership, and access to relevant services. To enhance the adoption of improved maize dryers, stakeholders should support farmers in expanding production land, joining cooperatives, accessing extension services, and connecting with commercial maize markets. Additionally, awareness programs targeting older farmers with large households and those lacking post-harvest training may help address factors associated with unwillingness to use improved maize dryers. |
| Keywords: | Farm Management, Research and Development/Tech Change/Emerging Technologies, Teaching/Communication/Extension/Profession |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:iaae24:344279 |
| 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:iaae24:344265 |
| By: | Afonso Rodrigues |
| Abstract: | Popular demand estimation approaches impose unrealistic choice constraints and misstate market boundaries, biasing price elasticity estimates and affecting our understanding of market power and pass-throughs. I introduce a novel, scalable method that conditions the outcome of consumers' choice on the structure of their consideration set: a function of all the combinations of goods - shopping baskets - considered each purchase instance by consumers. I show that if consideration sets bind consumers' consumption bundles, joint purchases induce substitutes and complements, possibly making market concentration welfare-increasing. To allow for demand estimation across product categories while addressing dimensionality concerns, I develop a Slutsky matrix proxy from joint-purchase frequencies. I test the model's predictions and jointly determine price elasticities for 20 000 goods across 500 product categories for a Portuguese grocery store sample from 2020-23. The results match observed price volatility, profit margin surveys, as well as reports on shifting consumer tastes during the sample period. Mark-ups are found to have remained volatile around a stable mean, with peaks and troughs corresponding to COVID-related events. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2511.11846 |
| By: | Gan, Weiming |
| Abstract: | Geographical indications (GIs) link products to the characteristics of their production areas (environment, culture, landscape), thereby capitalizing on consumer willingness to pay for these attributes. While existing literature has highlighted the economic effects of GIs, empirical research on their environmental impacts remains limited. Environmental factors underpin the economic benefits of GIs and may be unsustainable if not properly managed. To address this gap, we constructed a panel dataset by combining remote sensing data with county-level statistical data from 2000 to 2021. Using a staggered difference-in-differences method, our results show that GI certification led to an approximate 3.2% decrease in methane emis-16 sions, with each additional GI contributing 0.8% to the reduction. This finding remains robust after addressing selection bias. This effect stems mainly from a decrease in fertilizer application and an enhancement in agricultural technology, rather than a reduction in agricultural output. The methane reduction effects of GI certifications linked to tea and fruit products demonstrate heightened statistical significance. |
| Keywords: | Environmental Economics and Policy, Production Economics, Research Methods/Statistical Methods |
| URL: | https://d.repec.org/n?u=RePEc:ags:aes025:356633 |
| By: | Chiadmi, Ines |
| Abstract: | The efficacy of information provision policy instruments is proven to complement traditional environmental policies in pollution control. In the agricultural sector, information is notably disseminated through agricultural extension services. In this study, we focus on advisory services that target the improvement of soil and water quality in Flanders, Belgium. Using a Discrete Choice Experiment (DCE), we elicit Flemish farmers’ preferences for advisory strategies in terms of the group size, the interaction format, the provenance of the advisors, the theme of guidance activities, the frequency and the cost of participation. The DCE analysis results, accounting for both homogeneous and heterogeneous preferences, indicate a consistent aversion to government-affiliated advisors and sensitivity to the cost attribute. The latent class model reveals two distinct segments: one pragmatic class, which prioritizes face-to-face interactions, private consultants, and cost considerations, and another more engaged class, open to participating in guidance activities as long as they are not led by government advisors, while still exhibiting a negative sensitivity to cost. We are currently investigating the interaction between our DCE results and covariates representing farmers’ satisfaction with existing advisory activities and their tendencies toward information avoidance. |
| Keywords: | Agribusiness, Crop Production/Industries |
| URL: | https://d.repec.org/n?u=RePEc:ags:aes025:356774 |
| By: | José María Durán-Cabré (Universitat de Barcelona & IEB); Alejandro Esteller-Moré (Universitat de Barcelona & IEB); Riccardo Secomandi (University of Ferrara & IEB) |
| Abstract: | We examine how information influences the marginal willingness to pay taxes (MWTPT) through a four-wave randomized survey experiment conducted during the COVID-19 pandemic. Specifically, we assess the impact of quantitative (data on the actual tax-to-GDP ratio) and qualitative (basic pros and cons of taxation) information on revealed MWTPT. The results show that qualitative information increases MWTPT, particularly among high-income individuals. In contrast, quantitative information only reduces MWTPT among high-income individuals who initially underestimated the aggregate tax burden. Hence, those who are potentially more affected by taxes are also more sensitive to the provision of information. These findings suggest that information can shape perceptions of the tax system and, consequently, influence individuals' willingness to contribute to public good provision. This has important implications for tax policy design and efforts to reduce political polarization. If these efforts are not properly implemented, the revealed price of democracy will remain biased. |
| Keywords: | Survey experiment, Fiscal knowledge, Marginal Willingness to Pay Taxes, Income based behaviour |
| JEL: | D72 D91 H20 H26 H30 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ieb:wpaper:doc2025-04 |
| By: | Was, Adam; Kobus, Paweł; Majewski, Edward; Rawa, Grzegorz |
| Abstract: | Methane emission from cattle production is considered an essential part of total GHG emissions from the agricultural sector. Common Agricultural Policy introduced agri-environment climate measures (AECM) based on voluntary contracts between farmers and state authorities, which can be used as instruments to reduce GHG emissions, including methane. The paper presents the study’s results1 aimed at identifying farmers’ preferences regarding actions for mitigating methane emission at dairy farms and an optimal solution for the most efficient, assuming a given mitigation target, set of actions. Discrete Choice Experiment and optimisation procedure were applied. The results show that the most efficient from taxpayers’ point of view are biofilters supported by Result-Based contracts. |
| Keywords: | Agribusiness, Livestock Production/Industries, Livestock Production/Industries, Research Methods/Statistical Methods |
| URL: | https://d.repec.org/n?u=RePEc:ags:aes025:356747 |
| 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:iaae24:344325 |
| By: | Carmelo Rodríguez à lvarez (Instituto Complutense de Análisis Económico (ICAE), Universidad Complutense de Madrid (Spain)) |
| Abstract: | We analyze strategy-proof rules that select sets of alternatives based on voters’ preferences over those sets. Sets of alternatives represent social choices pending a final resolution and voters are expected utility maximizers that assign probabilities to alternatives within each set using Bayesian updating from a common prior probability assessment. If there are at least three alternatives, then, for generic priors, only dictatorial rules are strategy-proof and unanimous. However, when the prior probability assessment assigns equal probability to all alternatives, strategyproofness also permits rules that select the set of best elements determined by two fixed voters. |
| Keywords: | Strategy-Proofness; Social Choice Functions over Sets; Cardinal Decision Schemes. |
| JEL: | D71 D82 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ucm:doicae:2507 |
| 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:iaae24:344257 |
| 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:iaae24:344299 |
| By: | Andrei Zeleneev; Weisheng Zhang |
| Abstract: | Interactive fixed effects are routinely controlled for in linear panel models. While an analogous fixed effects (FE) estimator for nonlinear models has been available in the literature (Chen, Fernandez-Val and Weidner, 2021), it sees much more limited use in applied research because its implementation involves solving a high-dimensional non-convex problem. In this paper, we complement the theoretical analysis of Chen, Fernandez-Val and Weidner (2021) by providing a new computationally efficient estimator that is asymptotically equivalent to their estimator. Unlike the previously proposed FE estimator, our estimator avoids solving a high-dimensional optimization problem and can be feasibly computed in large nonlinear panels. Our proposed method involves two steps. In the first step, we convexify the optimization problem using nuclear norm regularization (NNR) and obtain preliminary NNR estimators of the parameters, including the fixed effects. Then, we find the global solution of the original optimization problem using a standard gradient descent method initialized at these preliminary estimates. Thus, in practice, one can simply combine our computationally efficient estimator with the inferential theory provided in Chen, Fernandez-Val and Weidner (2021) to construct confidence intervals and perform hypothesis testing. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2511.15427 |