scholarly journals Masked Heterogeneity in Aggregation: Incorporating Beliefs and Geographic Information into Consumer Willingness to Pay for State Brands

2020 ◽  
Vol 52 (4) ◽  
pp. 527-544
Author(s):  
Meagan Osburn ◽  
Rodney B. Holcomb ◽  
Clinton L. Neill
Keyword(s):  
Willingness To Pay ◽  
Random Parameter ◽  
Geographic Information ◽  
Agricultural Products ◽  
Logit Models ◽  
Aggregate Model ◽  
Marginal Willingness To Pay ◽  
Disaggregate Model ◽  
Random Parameter Logit ◽  
State Region

AbstractState marketing programs for food and agricultural products are largely driven by consumers’ desires to purchase in-state products. Evaluations of state marketing programs have largely ignored consumer location and proximity to surrounding states, measures of ethnocentrism, and the presence of other geographic marketing labels. This study examines willingness to pay for own and out-of-state labels for a generic commodity, milk, within an eight-state region. The results show that an aggregate model conceals consumer heterogeneity in marginal willingness to pay values for state brands as compared to a disaggregate model, even when using random parameter logit models.

Estimating non-market environmental values for grassland protection in inner Mongolia

2019 ◽  
Vol 24 (04) ◽  
pp. 361-375 ◽  
Author(s):  
Bao Zhang ◽  
Jeff Bennett ◽  
Guanghua Qiao
Keyword(s):  
Willingness To Pay ◽  
Inner Mongolia ◽  
Random Parameter ◽  
Grassland Management ◽  
Mobile Phone Application ◽  
Conditional Logit ◽  
Market Values ◽  
Random Parameter Logit ◽  
Sample Representation ◽  
Financial Base

AbstractThe non-market values of changes in grassland management stimulated by changes in policies were estimated by choice modeling. Four-hundred twenty-seven residents of Hohhot city in Inner Mongolia were selected using the popular mobile phone application WeChat. Conditional logit (CL) and random parameter logit (RPL) models were estimated to analyze the preference of respondents for environmental and social attributes. Based on the preferred RPL model, the average per household willingness to pay over 10 years for the best policy outcome scenarios was estimated to be CNY892 (US$141). The total willingness to pay for this policy change, extrapolated to the population of Hohhot, was CNY208 million (US$33 million). The findings suggest that environmental and social outcomes are valuable to Chinese residents of a regional urban center. Such values should be viewed as a public financial base for market-based mechanisms for grassland protection both in China and internationally. WeChat proved to be convenient but required the application of extrapolation caveats relating to sample representation.

Chinese consumers’ willingness-to-pay for safety label on tomato: evidence from choice experiments

2017 ◽  
Vol 9 (1) ◽  
pp. 141-155 ◽  
Author(s):  
Shijiu Yin ◽  
Mo Chen ◽  
Yingjun Xu ◽  
Yusheng Chen
Keyword(s):  
Food Safety ◽  
Willingness To Pay ◽  
Logit Model ◽  
Random Parameter ◽  
Choice Experiments ◽  
Content Type ◽  
Significant Difference ◽  
Random Parameter Logit ◽  
Organic Label ◽  
Random Parameter Logit Model

Purpose Unlike some developed countries, Chinese food safety certification system is multi-level including organic/green/hazard-free certifications. The purpose of this paper is to assess consumers’ preferences for tomatoes carrying these different labels. Design/methodology/approach Data used in this study came from choice experiments (CEs) conducted in Shandong province, China. Based on experiment data, a random parameter logit model was established to analyze consumers’ willingness-to-pay (WTP). Findings Consumers’ WTP for organic tomatoes was higher than that for hazard-free and green-certified tomatoes. Furthermore, consumers’ WTP for the European Union (EU) organic label was higher than that for the Chinese organic label, whereas a non-significant difference existed between the levels of consumers’ WTP for hazard-free and green-certified tomatoes. Consumers with different food safety risk perception (FSRP) had large differences in WTP, whereas those with varying environmental awareness (ENAW) had similar levels of WTP. Originality/value This contribution is the first research which focuses on consumers’ WTP for EU organic label, Chinese organic label, green label, or hazard-free label on tomato through CEs in China. Furthermore, the influence of consumers’ FSRP and ENAW on their preference was analyzed through a random parameter logit model.

Willingness-to-Pay Estimation with Mixed Logit Models: Some New Evidence

2005 ◽  
Vol 37 (3) ◽  
pp. 525-550 ◽  
Author(s):  
Mauricio Sillano ◽  
Juan de Dios Ortúzar
Keyword(s):  
Willingness To Pay ◽  
Stated Preference ◽  
Mixed Logit ◽  
Revealed Preference ◽  
Random Parameter ◽  
Estimation Methods ◽  
Logit Models ◽  
Choice Modelling ◽  
Mixed Logit Models ◽  
Discrete Choice Modelling

Mixed-logit models are currently the state of the art in discrete-choice modelling, and their estimation in various forms (in particular, mixing revealed-preference and stated-preference data) is becoming increasingly popular. Although the theory behind these models is fairly simple, the practical problems associated with their estimation with empirical data are still relatively unknown and certainly not solved to everybody's satisfaction. In this paper we use a stated-preference dataset—previously used to derive willingness to pay for reduction in atmospheric pollution and subjective values of time—to estimate random parameter mixed logit models with different estimation methods. We use our results to discuss in some depth the problems associated with the derivation of willingness to pay with this class of models.

scholarly journals Willingness-to-Pay and Preference Heterogeneity for Service Attributes of Solid Waste Management: An Experience in Kolkata, India

2014 ◽  
Vol 17 (1) ◽  
pp. 82-92
Keyword(s):  
Waste Management ◽  
Willingness To Pay ◽  
Solid Waste ◽  
Solid Waste Management ◽  
Random Parameter ◽  
Preference Heterogeneity ◽  
Triangular Distribution ◽  
Stated Choice ◽  
Socioeconomic Characteristics ◽  
Random Parameter Logit

<div> <p>The effects of various socioeconomic characteristics on Willingness-to-Pay (WTP) values for service attributes of Solid Waste Management (SWM) were evaluated in this study. The Stated Choice (SC) data collected from respondents in the Kolkata Municipal Corporation (KMC) area, India were analyzed using Random Parameter Logit (RPL) models. Education and household income were found to have statistically significant decomposition effects on mean estimates of several SWM attributes. High income and/or high education were well-correlated to higher WTP values for most of the service attributes. The results show that due consideration to socioeconomic characteristics is necessary while formulating measures for improvement of SWM service in an urban area. This work also demonstrates potential application of RPL models for investigating the effect of socioeconomic characteristics on WTP values, and successful application of constrained triangular distribution in RPL models.</p> </div> <p>&nbsp;</p>

scholarly journals CONSUMER WILLINGNESS TO PAY FOR TENNESSEE CERTIFIED BEEF

2018 ◽  
Vol 50 (2) ◽  
pp. 233-254 ◽  
Author(s):  
MEAGAN G. MERRITT ◽  
KAREN LEWIS DELONG ◽  
ANDREW P. GRIFFITH ◽  
KIMBERLY L. JENSEN
Keyword(s):  
Quality Assurance ◽  
Willingness To Pay ◽  
Logit Model ◽  
Choice Experiment ◽  
Random Parameter ◽  
Beef Quality ◽  
Random Parameter Logit ◽  
Beef Quality Assurance ◽  
The Impact ◽  
Random Parameter Logit Model

AbstractAlthough Tennessee has Advanced Master Beef Producer (AMBP) and Beef Quality Assurance (BQA) certifications for cattle producers, currently there is no state-certified beef labeling program. A choice experiment was administered to Tennessee consumers to determine their willingness to pay for Tennessee Certified Beef (TCB) and other attributes such as labels indicating producer participation in AMBP and BQA. Random parameter logit model results indicate consumers most valued TCB steak and no-hormones-administered ground beef. Consumers also valued many labels when appearing alongside the TCB label. The impact of providing participants label definitions prior to the choice experiment was examined.

Analysis of Discrete Choice Data with Repeated Observations: Comparison of Three Techniques in Intercity Travel Case

1997 ◽  
Vol 1607 (1) ◽  
pp. 69-73 ◽  
Author(s):  
Shomik Raj Mehndiratta ◽  
Mark Hansen
Keyword(s):  
Stated Preference ◽  
Random Parameter ◽  
Alternative Methods ◽  
Single Individual ◽  
Logit Models ◽  
Choice Data ◽  
Widespread Application ◽  
Repeated Observations ◽  
Random Parameter Logit ◽  
Repeated Choice

With the acceptance and widespread application of stated preference methods in transportation analysis, there has been a need for the analysis of choice data with repeated observations. Analysis of repeated choice data is complicated by correlation of responses across the choices made by a single individual. In the probit framework, repeated choice can easily be accommodated by way of correlation in the utilities associated with the errors. However, the probit framework has computational limitations; subsequently, researchers have looked to modeling repeated choice by using extensions of the logit model. Random parameter logit models estimated by simulation methods provide a promising modeling framework. The estimation results of some stated preference intercity business travel data are compared by using three alternative estimation techniques to account for correlations across the choices made by a single individual. It is believed that two of the alternative methods, which use random-parameter logit models (developed by researchers for use in an energy application), have not been used before in the transportation context. A comparison of the three techniques provides documentation for researchers and practitioners who plan to analyze such data.

scholarly journals Taste Beats Reputation in New Food Products Choice: The Case of Ready-to-Eat Pomegranate among Young Consumers in Veneto Region (Italy)

Horticulturae ◽  
2021 ◽  
Vol 7 (7) ◽  
pp. 179
Author(s):  
Alice Stiletto ◽  
Erika Rozzanigo ◽  
Elisa Giampietri ◽  
Samuele Trestini
Keyword(s):  
Discrete Choice ◽  
Choice Experiment ◽  
Consumer Preferences ◽  
Random Parameter ◽  
Food Products ◽  
Sensory Features ◽  
Young Consumers ◽  
Random Parameter Logit ◽  
Italian Origin ◽  
Random Parameter Logit Model

This study investigates the preferences for ready-to-eat pomegranate arils in Italy through a discrete choice experiment (DCE) on 264 young consumers in Italy. The aim is to estimate consumers’ willingness to pay (WTP) for the reputational attributes of the product (e.g., the product origin and sales channel) and to discriminate the elicited preferences between tasting and non-tasting situations. To this purpose, a random parameter logit model was employed to assess the heterogeneity in consumer preferences. The results suggest that non-tasters attach a relevant value to the reputational attributes (e.g., +75% WTP for Italian origin). Moreover, considering the sensory features of the products, we found that consumers in this group discriminate against the proposed samples only through their visual characteristics: they prefer the sample with the largest size and red colored arils. In addition, we found that the tasting experience reduced the value attached to the reputational attributes (e.g., −50% WTP for local origin) for consumers, compared to non-tasting situation, thus shifting their preference to the samples that they appreciated the most (high liking). Specifically, we found that consumers in the tasting group preferred the product sample with the highest level of sweetness and the lowest level of sourness and astringency, showing a higher preference for sweetness. The findings contribute to the literature on consumers’ behavior on new food products (NFPs), showing that reputational attributes lose value after the tasting experience. In contrast, the sensory features of the NFPs can help tasters to reduce the information asymmetry, which traditionally represents a hurdle in purchases for new consumers. However, this depends on the individuals’ subjective preferences, as demonstrated by the significant effect of liking levels in discriminating consumers’ choices. To conclude, although these results cannot be extended to the general population, they may give some interesting insights about future trends of NFP demand.

scholarly journals The Effects of Life Course Events on Car Ownership and Sustainable Mobility Tools Adoption Decisions: Results of an Error Component Random Parameter Logit Model

2021 ◽  
Vol 13 (12) ◽  
pp. 6816
Author(s):  
Gaofeng Gu ◽  
Tao Feng ◽  
Chixing Zhong ◽  
Xiaoxi Cai ◽  
Jiang Li
Keyword(s):  
Life Course ◽  
Logit Model ◽  
Random Parameter ◽  
Error Component ◽  
Car Ownership ◽  
Sustainable Mobility ◽  
Car Sharing ◽  
Random Parameter Logit ◽  
Electric Bike ◽  
Random Parameter Logit Model

Life course events can change household travel demand dramatically. Recent studies of car ownership have examined the impacts of life course events on the purchasing, replacing, and disposing of cars. However, with the increasing diversification of mobility tools, changing the fleet size is not the only option to adapt to the change caused by life course events. People have various options with the development of sustainable mobility tools including electric car, electric bike, and car sharing. In order to determine the impacts of life course events on car ownership and the decision of mobility tool type, a stated choice experiment was conducted. The experiment also investigated how the attributes of mobility tools related to the acceptance of them. Based on existing literature, we identified the attributes of mobility tools and several life course events which are considered to be influential in car ownership decision and new types of mobility tools choice. The error component random parameter logit model was estimated. The heterogeneity across people on current car and specific mobility tools are considered. The results indicate people incline not to sell their current car when they choose an electric bike or shared car. Regarding the life course events, baby birth increases the probability to purchase an additional car, while it decreases the probability to purchase an electric bike or joining a car sharing scheme. Moreover, the estimation of error components implies that there is unobserved heterogeneity across respondents on the sustainable mobility tools choice and the decision on household’s current car.

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