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on Discrete Choice Models |
| By: | Hou, Zheng; Hu, Wuyang; Xu, Yilan |
| Abstract: | Discrete choice experiments (DCEs) are widely used to elicit consumer preferences, yet how the assignment of attributes and levels affects respondent understanding and preference elicitation remains underexplored. Although prior studies have examined different DCE design factors, little attention has been given to the implications of swapping attributes and levels. This study aims to fill this gap by comparing two designs that reverse the roles of attributes and levels. Our results find that the design using sustainability measures as attributes improves reading ease compared to the design using sustainability outcomes as attributes. Moreover, while both designs show consistent preference patterns across choice sets, variations in willingness-to-pay (WTP) estimates suggest differences in preference consistency between the two designs. These findings highlight that attribute-level assignment may have implications for both respondent and researchers. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360616 |
| By: | Dahal, Bhishma R.; Mooney, Daniel F.; Hoag, Dana L.; Burkhardt, Jesse; Mason, Seth |
| Abstract: | Amid ongoing policy discussions around water scarcity in the Colorado River Basin, we examined factors influencing farmers’ stated participation in agricultural water conservation programs (AWCPs) in Colorado’s Upper Basin. Using data from a discrete choice experiment, we assessed preferences for hypothetical program attributes and payment levels. Respondents preferred AWCPs with shared conservation responsibility, water shepherding, and higher compensation. Participation declined for more intensive conservation practices and larger land commitments. Larger farms required lower payments to participate, while older and higher-income farmers required more. The findings identify program attributes, such as flexibility and transparent water use outcomes, that can help policy makers drive voluntary participation in AWCPs. |
| Keywords: | Production Economics |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361067 |
| By: | Alexia Delfino; Andrea Garnero; Sergio Inferrera; Marco Leonardi; Raffaella Sadun |
| Abstract: | We study barriers preventing jobseekers from pursuing reskilling in high-demand occupations. Using a discrete choice experiment, we quantify the demand for reskilling among Italian jobseekers in two white-collar high-demand occupations—information technology assistant and construction technician—and identify its main determinants. Willingness to pay estimates show that participants are willing to pay to reskill into IT, but would require compensation to reskill into construction. Beliefs about monetary returns and social status help explain differences in reskilling demand, but perceived identity fit in the target occupation emerges as the most important individual-level factor shaping reskilling decisions. A light-touch randomized information intervention providing data on occupational returns significantly increases both stated interest in reskilling and actual engagement in real-world training. |
| JEL: | D83 I20 J24 J32 J60 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34633 |
| By: | Ren, Yongwang; Bergtold, Jason; Gharib, Mariam; Osman, Eliyasu; Sutley, Elaina; Sharmin, Rumana |
| Abstract: | Households are negatively affected by water outages under the context of more frequent natural disasters, aging water infrastructure, and inadequate investment in upgrading the system. Using choice experiment data and random coefficient model, we estimated Kansas households’ willingness to pay (WTP) to avoid water outages during extreme weather events. The results indicate that the WTP increases with the duration of the water outages at a decreasing rate. The WTP is also higher if the water outage occurred during winter. Furthermore, we find heterogeneous preferences of urban and rural households as the former care more about the time and season when water outages occurred. These findings provide important information and insight for policy makers when making investment decisions on hardening water infrastructure. |
| Keywords: | Demand and Price Analysis |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361201 |
| By: | Adabrah-Danquah, Vera; Britton, Logan L.; Tonsor, Glynn T.; Coffey, Brian K.; Pendell, Dustin L. |
| Abstract: | This study examines U.S. consumer acceptance of meat from animals affected by foot-and-mouth disease (FMD), a non-zoonotic yet economically significant disease. A January 2025 survey of U.S. residents assessed demographic factors, disease knowledge, neophobia, and trust. Experimental approaches, including discrete choice and best-worst scaling, evaluated willingness to pay for attributes like vaccination status and geographic origin, and acceptance of alternative uses for recovered meat. Results highlight key consumer acceptance barriers, emphasizing strategies for integrating recovered meat into supply chains to reduce waste, mitigate market disruptions, and enhance sustainability. The study provides insights to balance economic recovery, food security, and sustainability in food systems following disruptive animal disease events. |
| Keywords: | Marketing |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360838 |
| By: | Adabrah-Danquah, Vera; Britton, Logan L.; Tonsor, Glynn T.; Coffey, Brian K.; Pendell, Dustin L. |
| Abstract: | This study examines U.S. consumer acceptance of meat from animals affected by foot-and-mouth disease (FMD), a non-zoonotic yet economically significant disease. A January 2025 survey of U.S. residents assessed demographic factors, disease knowledge, neophobia, and trust. Experimental approaches, including discrete choice and best-worst scaling, evaluated willingness to pay for attributes like vaccination status and geographic origin, and acceptance of alternative uses for recovered meat. Results highlight key consumer acceptance barriers, emphasizing strategies for integrating recovered meat into supply chains to reduce waste, mitigate market disruptions, and enhance sustainability. The study provides insights to balance economic recovery, food security, and sustainability in food systems following disruptive animal disease events. |
| Keywords: | Livestock Production/Industries |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361174 |
| By: | Dang, Ruirui; Badole, Sachin B.; Towe, Charles; Heintzelman, Martin D. |
| Abstract: | This study uses data from a discrete choice experiment in the northeastern U.S. to examine resident preferences for siting wind and solar energy projects. It explores the impacts of landscape, agricultural production, cooperation, and financial compensation to stakeholders. Findings suggest that households are more favorable to renewable energy development if subsidies are provided on their electricity bills. Key factors influencing decisions include visual impact, proximity, and community engagement. Payments to landowners and communities also play a significant role in shaping local support and acceptance. Our study further reveals considerable heterogeneity in preferences. Respondents demonstrated overall support for wind or solar farm development in their local community, though preferences differed among various demographic and attitudinal groups, with the average respondent willing to be compensated $88 less in their base electric bill. |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361208 |
| By: | Nuthalapati, Chandra; Saha, Shree; Areef, Mulla |
| Abstract: | This paper presents findings from two discrete choice experiments conducted among 836 vegetable growers across four Indian states during 2020-2021. The study aimed to elucidate farmers’ preferences within evolving food supply chains, particularly amidst the supermarket revolution. The first experiment focused on farmers’ supply chain preferences, and we found interesting results, revealing no preference for a specific place of sale, but rather a preference for credit and input support, while showing a significant aversion to delayed payment methods. The second experiment investigated their contract preferences in modern food supply chains, highlighting nuanced preferences for contract terms that minimize financial and legal risks, as well as favor pricing mechanisms that ensure a minimum base price with quality incentives. Demographic factors, initially influential, exhibited varying impacts across different models, highlighting the complex dynamics that shape farmers' decisions. Understanding these preferences is crucial for shaping effective policies and strategies that enhance market access, promote sustainable agricultural practices, and contribute to global food security and economic development. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360604 |
| By: | Pignatari, Marcelo; Caplan, Arthur |
| Abstract: | We evaluate Oregon households’ welfare gains from chainging the state’s marine-reserve system (MRS) by integrating carbon sequestration and coastal employment objectives. A D-efficient discrete-choice experiment (N = 371) varied reserve size, net jobs, blue-carbon and annual cost. Random-Parameter Logit models with Error-Component estimated in WTP-space yield stable welfare metrics and out-perform Generalized Mixed Logit models and utility-space analogues. All three attributes display positive, monotonic marginal WTP with blue carbon being the most valued. Scenario analysis shows strong loss aversion with an “optimistic” package (+50 % size, +200 jobs, +100 % carbon) commanding $465–704 yr⁻¹ in mean WTP, whereas equivalent contractions generate larger welfare losses. When budgets bind, respondents prioritize blue-carbon gains over job creation or additional reserve area, underscoring climate-mitigation benefits as the decisive driver of support. Preference heterogeneity by coastal use is pronounced: non-fishing recreationists exhibit the highest WTP, while recreational fishers value improvements less but demand greater compensation to accept the status quo. These findings indicate broad public backing for MRS policies that center on blue-carbon outcomes and suggest that tiered financing or carbon-credit mechanisms could secure stable funding while retaining stakeholder acceptance. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360721 |
| By: | Kabir, Md Faizul; Dennis, Elliott; Banerjee, Simanti; Meredith, Gwendwr; Pape, Timothy; Stephenson, Mitch; Allen, Craig; Sandahl, David |
| Abstract: | This study uses a discrete choice experiment to examine how ranchers in the Northern Great Plains respond to features of the Grassland CRP. We find that ranchers prefer higher payments and cost-share, shorter contract lengths, and flexibility. Ranchers value contracts that allow winter grazing and resist mandatory rotational grazing. Willingness-to-accept estimates show that ranchers require $6.47/acre for rotational grazing and $8.19 for longer contracts but would forgo $7.81, $11.77, and $7.84 per acre for cost-share, winter grazing, and flexibility, respectively. Preference heterogeneity is most evident for grazing-related practices and cost share. Nearly 69% of non-participants are unaware of the Program and perceive that payment and cost-share are more important than other contract features. Participation could be improved through flexible contract design, enhanced outreach, and financial incentives. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361175 |
| By: | Ji, Yikuan |
| Abstract: | This paper examines the distributional and behavioral impacts of New York City’s congestion pricing policy, launched in January 2025 as the first cordon-based system in the United States. Using detailed trip-level data from the NYC Citywide Mobility Survey and a structure discrete choice model of travel mode choice, I estimate heterogeneous responses to price and service changes across demographic and geographic groups. Empirical results confirm strong disutility for both travel cost and time, with limited substitution between private vehicles and public transit. Counterfactual simulations show that the current toll design alone has minimal effect on reducing vehicle use. However, reinvesting toll revenue into transit—via fare reductions and service improvements—increases subway use, stabilizes bus share, and modestly shifts travelers away from cars. These effects are more pronounced for longer trips and for travel involving Manhattan’s core. In contrast, raising tolls without reinvestment delivers negligible additional impact. These results highlight the need to pair pricing with targeted transit investment to achieve both efficiency and equity goals. Future work will quantify welfare impacts across demographic and geographic subgroups to inform inclusive urban transportation policy. |
| Keywords: | Farm Management |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360946 |
| By: | Krasovskaia, Elena; David R. Just, David R. |
| Abstract: | This paper investigates how income influences consumer behavior in grocery shopping, focusing on food choices and price sensitivity. We introduce a behavioral framework grounded in a two-stage “putty-clay” decision-making process. In the flexible “putty” phase, consumers filter out items from the set of all alternatives based on price- and preference-related rationales; in the more rigid “clay” phase, choices are made from a constrained set that becomes habitual over time. We hypothesize that low-income consumers form smaller and more rigid sets due to budget constraints and perceived unaffordability, limiting their responsiveness to price changes. Using detailed purchase data from the NielsenIQ Consumer Panel, we find that choice set size increases with income and that price sensitivity is attenuated within the constrained sets. These findings challenge standard demand models by revealing that low-income consumers, while generally price-sensitive, may fail to adjust optimally due to behavioral and structural constraints. Our framework highlights how the two-stage choice process contributes to food and nutrition insecurity, offering implications for policy interventions aimed at expanding choice flexibility and improving food access for economically vulnerable populations. |
| Keywords: | Institutional and Behavioral Economics |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360712 |