Willingness-to-Pay and Preference Heterogeneity for Rural Bus Attributes

2007 ◽  
Vol 133 (1) ◽  
pp. 62-69 ◽  
Author(s):  
C. V. Phanikumar ◽  
Bhargab Maitra
Keyword(s):  
Willingness To Pay ◽  
Preference Heterogeneity

The effects of personal experience on choice-based preferences for wildfire protection programs

2013 ◽  
Vol 22 (2) ◽  
pp. 234 ◽  
Author(s):  
Thomas P. Holmes ◽  
Armando González-Cabán ◽  
John Loomis ◽  
José Sánchez
Keyword(s):  
Willingness To Pay ◽  
Personal Experience ◽  
Choice Experiment ◽  
Prior Experience ◽  
Preference Heterogeneity ◽  
Risk Averse ◽  
Risk Seeking ◽  
Economic Rationale ◽  
Trade Offs ◽  
Risk Loss

In this paper, we investigate homeowner preferences and willingness to pay for wildfire protection programs using a choice experiment with three attributes: risk, loss and cost. Preference heterogeneity among survey respondents was examined using three econometric models and risk preferences were evaluated by comparing willingness to pay for wildfire protection programs against expected monetary losses. The results showed that while nearly all respondents had risk seeking preferences, a small segment of respondents were risk neutral or risk averse. Only respondents who had personal experience with the effects of wildfire consistently made trade-offs among risk, loss and cost and these respondents were willing to pay more for wildfire protection programs than were respondents without prior experience of the effects of wildfire. The degree to which people with prior experience with the effects of wildfire can effectively articulate an economic rationale for investing in wildfire protection to other members of their own or other communities facing the threat of wildfires may influence the overall success of wildfire protection programs.

Smallholder preferences and willingness-to-pay measures for microcredit

2018 ◽  
Vol 10 (3) ◽  
pp. 462-481 ◽  
Author(s):  
Zhao Ding ◽  
Awudu Abdulai
Keyword(s):  
Willingness To Pay ◽  
Interest Rates ◽  
Latent Class ◽  
Smallholder Farmers ◽  
Mixed Logit ◽  
Latent Class Models ◽  
Preference Heterogeneity ◽  
Content Type ◽  
Lower Interest Rate ◽  
Class Models

Purpose The purpose of this paper is to examine smallholders’ preferences and willingness to pay for microcredit products with varying attribute combinations, in order to contribute to the debate on the optimal design of rural microcredit. Design/methodology/approach Data used in this study are based on a discrete choice experiment from 552 randomly selected respondents. Mixed logit and latent class models are estimated to examine the choice probability and sources of preference heterogeneity. Endogenous attribute attendance models are applied to account for attribute non-attendance (ANA) phenomenon, focusing on separate non-attendance probability as well as joint non-attendance probability. Findings The results demonstrate that preference heterogeneity and ANA exist in the smallholder farmers’ microcredit choices. Averagely, smallholder farmers prefer longer credit period, smaller credit size, lower transaction costs and lower interest rate. Guarantor collateral method and installment repayment positively affect their preferences as well. Moreover, respondents are found to be willing to pay more for the attributes they consider important. The microcredit providers are able to attract new customers under the current interest rates, if the combination of attributes is appropriately adjusted. Originality/value This study contributes to the debate by assessing the preference trade-off of different microcredit attributes more comprehensively than in previous analyses, by taking preference heterogeneity and ANA into account.

scholarly journals IS THERE A MARKET FOR BRANDED GULF OF MEXICO OYSTERS?

2017 ◽  
Vol 49 (1) ◽  
pp. 45-65 ◽  
Author(s):  
DANIEL R. PETROLIA ◽  
WILLIAM C. WALTON ◽  
LAURIANE YEHOUENOU
Keyword(s):  
Gulf Of Mexico ◽  
Willingness To Pay ◽  
Choice Experiment ◽  
Preference Heterogeneity ◽  
Price Premium ◽  
Significant Preference ◽  
Price Discount ◽  
Factors Influencing ◽  
Marginal Willingness To Pay

AbstractWe administered an online choice experiment to a sample of U.S. raw-oyster consumers to identify factors influencing preferences for Gulf of Mexico oysters, determined the extent of preference heterogeneity, and estimated marginal willingness to pay for specific varieties and other key attributes. Results indicate significant preference heterogeneity among select varieties, with non-Gulf respondents estimated to require a price discount on Gulf oyster varieties on the order of $3–$6/half dozen. Gulf respondents were found to be less sensitive to oyster variety, and estimated to be willing to pay a price premium only for select Gulf varieties on the order of $0–$3/half dozen.

scholarly journals Is Biodiversity a Relevant Attribute for Assessing Natural Parks? Evidence from Cornalvo Natural Park in Spain

Forests ◽  
2020 ◽  
Vol 11 (4) ◽  
pp. 410 ◽  
Author(s):  
Eva Crespo-Cebada ◽  
Carlos Díaz-Caro ◽  
Rafael Robina-Ramírez ◽  
M. Isabel Sánchez-Hernández
Keyword(s):  
Willingness To Pay ◽  
Latent Class ◽  
Economic Valuation ◽  
Mixed Logit ◽  
Preference Heterogeneity ◽  
Natural Park ◽  
Natural Parks ◽  
High Preference ◽  
Relevant Attribute ◽  
Visitor Preferences

The economic valuation of goods that do not have a market, like services offered by natural parks, provide a lot of information for the purpose of policy making on the conservation and protection of the natural environment, as well as for establishing park use strategies for potential park visitors. In this respect, this paper aims to analyse visitor preferences for Cornalvo Natural Park, which has been classed, since 1992, as a Site of Community Importance. To do this, we conducted an analysis adopting the choice experiment methodology to determine visitor preferences for a set of attributes. Additionally, we included a visitor preference heterogeneity analysis based on a mixed logit model in order to calculate individual willingness to pay with respect to a set of previously specified attributes. Finally, we also implemented the latent class methodology to define groups of individuals with similar characteristics. The information was gathered from visitor surveys conducted during 2019. The main results show that tourists had a high preference and willingness to pay for higher biodiversity levels and lower numbers of visitors, whereas the other attributes were less relevant. Additionally, we detected some degree of heterogeneity in willingness to pay by sex, age and income. Finally, Latent class analysis identified two visitor classes, determined primarily by age and income.

scholarly journals In-Flight Casinos, Is It Really a Nonsensical Idea? An Exploratory Approach Using Different Choice Experiments

2019 ◽  
Vol 11 (11) ◽  
pp. 3038 ◽  
Author(s):  
Jinsoo Hwang ◽  
Seong Ok Lyu ◽  
Sun-Bai Cho
Keyword(s):  
Willingness To Pay ◽  
Management Strategies ◽  
Choice Experiments ◽  
Population Based ◽  
Preference Heterogeneity ◽  
Market Segments ◽  
Exploratory Approach ◽  
Study Results ◽  
Airline Passengers ◽  
International Airlines

Most airlines make various efforts to enhance their customers’ levels of in-flight satisfaction while offering alternative services and entertainment. As an innovative service item, some international airlines plan in-flight casino facilities to relieve their customers’ boredom and fatigue emanating from tedious long flights. Using a study sample of casino visitors in Korea, we intend to better understand how potential airline passengers show their willingness to pay for the hypothetical in-flight casino services. We also employ multiple choice experimental techniques to examine preference heterogeneity embedded in the sampled population. Based on study results, several management strategies are discussed for offering tailored in-flight entertainment services to targeted market segments.

scholarly journals Gender dynamics in Consumer preferences and willingness to pay for edible mushrooms in Ghana

2021 ◽  
Vol 14 (1-2) ◽  
Author(s):  
Rebecca Owusu ◽  
Florence Sefakor Dekagbey
Keyword(s):  
Willingness To Pay ◽  
Consumer Preferences ◽  
Mixed Logit ◽  
Edible Mushrooms ◽  
Preference Heterogeneity ◽  
Women Consumers ◽  
Jel Codes ◽  
Men And Women ◽  
Law Of Demand ◽  
Straw Mushroom

This study uses choice experiment to investigate men and women consumers’ preferences and willingness to pay for edible mushrooms in Ghana. We used a mixed logit model to examine preference heterogeneity. The econometric modelling revealed that men consumers have a negative utility for oyster mushrooms compared to straw mushrooms. They also have preference for cheap and locally cultivated mushrooms compared to expensive and imported mushrooms. However, women consumers have preferences for the shiitake mushroom variety compared to the straw mushroom variety. They also prefer cheap mushrooms irrespective of their location and such mushrooms must be frozen and not fresh. The findings highlight variation between men and women in preferences for mushroom variety, however, both have preferences for low prices, suggesting that both genders are economically rational and obey the law of demand. JEL codes: B21, D12

scholarly journals Understanding Tourists’ Willingness-to-Pay for Rural Landscape Improvement and Preference Heterogeneity

2019 ◽  
Vol 11 (24) ◽  
pp. 7001 ◽  
Author(s):  
Li Cong ◽  
Yujun Zhang ◽  
Ching-Hui (Joan) Su ◽  
Ming-Hsiang Chen ◽  
Jinnan Wang
Keyword(s):  
Willingness To Pay ◽  
Rural Areas ◽  
Mixed Logit ◽  
Rural Landscape ◽  
Rural Tourism ◽  
Preference Heterogeneity ◽  
Landscape Elements ◽  
Mixed Logit Models ◽  
Experiment Method ◽  
Compensating Surplus

With the vigorous development of urbanization and rural tourism, the landscape of villages and towns has undergone tremendous changes under the influence of policies and industries. In order to avoid irreversible changes in the local heritage landscape and promote local sustainable development, it is necessary to strengthen the attention and research on the rural recreation landscape. This research examines the value of rural landscape recreation by applying the choice experiment method (CEM) to a suburban area in Sichuan, China. Mixed logit models were adopted in examining tourists’ willingness-to-pay (WTP) for rural landscape improvement and preference heterogeneity. An assessment of the rural landscape’s recreational value was made using the compensating surplus calculation method. Results reported are of four important landscape elements: ecological environment, rural life and associated productive landscape, rural housing, and service landscape, ranked by tourists from high-to-low. A major finding of the research is that an increase in rural tourism is dependent upon improvements to landscape elements. The results of this research can provide policymakers with valuable information necessary to develop a successful plan to attract and increase tourism in rural areas of China.

scholarly journals Households’ willingness to pay and preferences for improved cook stoves in Ethiopia

2021 ◽  
Author(s):  
Mekonnen Bersisa ◽  
Almas Heshmati ◽  
Alemu Mekonnen
Keyword(s):  
Willingness To Pay ◽  
New Technology ◽  
Market Price ◽  
Discrete Choice Models ◽  
Fractional Factorial ◽  
Preference Heterogeneity ◽  
Marginal Rate ◽  
Rural Ethiopia ◽  
Marginal Rate Of Substitution ◽  
Cook Stoves

AbstractThis paper examines households’ preferences, willingness to pay, and determinants of adopting improved cook stoves in rural Ethiopia. The study uses primary household data selected randomly from three districts in Ethiopia’s Oromia region. The data was collected using a mix of contingent and choice experiment methods of valuation. The former used a double-bounded value elicitation method, while the latter used a fractional factorial design to efficiently generate an attribute and level combination for the improved cook stoves. The study also used various discrete choice models for data analysis and also used models which account for scale and preference heterogeneity. The findings show that the sample households were aware of the effects of using traditional cook stoves and the benefits of using improved cook stoves. However, they were constrained by the availability of the new technology and discouraged by the low-quality of the products that they had used so far. The estimated mean willingness to pay ranged from about 150 Birr to 350 Birr which is lower than the market price of the improved cook stoves. Emission reduction, reducing fire risks, and the durability of the cook stove positively affected its adoption, while price discouraged its use. Higher levels of education, higher incomes, non-farm employment, and having more livestock increased the probability of adopting the new gas stoves. The study recommends that policymakers and product designers should use the mean willingness to pay and marginal rate of substitution for the different attributes as a benchmark for product design and pricing that fit households’ preferences and ability to pay. The lower mean willingness to pay means that a public subsidizing policy is needed for effectively disseminating improved cook stoves in rural Ethiopia.

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