Segregation and clustering of preferences erode socially beneficial coordination

Polarization on various issues has increased in many Western democracies over the last decades, leading to divergent beliefs, preferences, and behaviors within societies. We develop a model to investigate the effects of polarization on the likelihood that a society will coordinate on a welfare-improving action in a context in which collective benefits are acquired only if enough individuals take that action. We examine the impacts of different manifestations of polarization: heterogeneity of preferences, segregation of the social network, and the interaction between the two. In this context, heterogeneity captures differential perceived benefits from coordinating, which can lead to different intentions and sensitivity regarding the intentions of others. Segregation of the social network can create a bottleneck in information flows about others’ preferences, as individuals may base their decisions only on their close neighbors. Additionally, heterogeneous preferences can be evenly distributed in the population or clustered in the local network, respectively reflecting or systematically departing from the views of the broader society. The model predicts that heterogeneity of preferences alone is innocuous and it can even be beneficial, while segregation can hamper coordination, mainly when local networks distort the distribution of valuations. We base these results on a multimethod approach including an online group experiment with 750 individuals. We randomize the range of valuations associated with different choice options and the information respondents have about others. The experimental results reinforce the idea that, even in a situation in which all could stand to gain from coordination, polarization can impede social progress.

On the heterogeneity of preferences for disability services

This paper investigates heterogeneity of preferences for disability services within the theoretical framework of consumption values. We conducted interviews with people with a disability and disability service providers to develop survey items, then conducted a survey with 2000 adult Australian residents who either had a disability or were carers of a person with a disability. After conducting descriptive analyses and data-driven market segmentation, findings revealed that, at the aggregate level, basic or functional benefits of disability services are most important. However, when accounting for heterogeneity, very distinct benefit patterns emerge, pointing to the substantial potential for improving disability services by catering to distinct market segment needs. These insights have the potential to improve disability service provision, thus maximally harvesting the opportunities from disability service models that now often include commercial providers, and enabling people with disabilities to make optimal choices in relation to both services and providers.

On the heterogeneity of preferences for disability services

This paper investigates heterogeneity of preferences for disability services within the theoretical framework of consumption values. We conducted interviews with people with a disability and disability service providers to develop survey items, then conducted a survey with 2000 adult Australian residents who either had a disability or were carers of a person with a disability. After conducting descriptive analyses and data-driven market segmentation, findings revealed that, at the aggregate level, basic or functional benefits of disability services are most important. However, when accounting for heterogeneity, very distinct benefit patterns emerge, pointing to the substantial potential for improving disability services by catering to distinct market segment needs. These insights have the potential to improve disability service provision, thus maximally harvesting the opportunities from disability service models that now often include commercial providers, and enabling people with disabilities to make optimal choices in relation to both services and providers.

Regional Heterogeneity of Preferences and Intergovernmental Transfers

We develop a model with optimal shares of intergovernmental transfers, and we apply a simulation analysis of our model for the case of Mexico. The main outcomes of this paper are as follows: First, we provide optimal shares of intergovernmental funds to be allocated in each state considering the regional distribution of the benefits of local public spending in Mexico. Second, our analysis shows that the regional heterogeneity of preferences across regions should be an important determinant of federal funds allocated to state governments. Third, the current system of finance relies on a tax revenue sharing accord that emphasizes nationwide tax collection issues as the main determinants of intergovernmental transfers and local spending. Our analysis provides a contrast between how fiscal policy is conducted, and feasible choices of policy reform. Fourth, our analysis of simulation identifies winners and losers from policy reform, and so our analysis contributes to a better understanding of the advantages and shortcomings of the current policy of intergovernmental transfers, providing feasible ways to improve the outcomes of subnational government spending.

Estimating and Using Individual Marginal Component Effects from Conjoint Experiments

Conjoint experiments are quickly gaining popularity as a vehicle for studying multidimensional political preferences. A common way to explore heterogeneity of preferences estimated with conjoint experiments is by estimating average marginal component effects across subgroups. However, this method does not give the researcher the full access to the variation of preferences in the studied populations, as that would require estimating effects on the individual level. Currently, there is no accepted technique to obtain estimates of individual-level preferences from conjoint experiments. The present paper addresses this gap by proposing a procedure to estimate individual preferences as respondent-specific marginal component effects. The proposed strategy does not require any additional assumptions compared to the standard conjoint analysis, although some changes to the task design are recommended. Methods to account for uncertainty in resulting estimates are also discussed. Using the proposed procedure, I partially replicate a conjoint experiment on immigrant admission with recommended design adjustments. Then, I demonstrate how individual marginal component effects can be used to explore distributions of preferences, intercorrelations between different preference dimensions, and relationships of preferences to other variables of interest.

Introducing Nature into Cities or Preserving Existing Peri-Urban Ecosystems? Analysis of Preferences in a Rapidly Urbanizing Catchment

Nature-based solutions (NBS) are increasingly being promoted as a means to address societal and environmental challenges, especially flood risk reduction. In the context of rapidly urbanizing catchments, NBS can take part of the development of sustainable cities, either by conserving peri-urban ecosystems from urban sprawl or by developing green infrastructure in the cities. Both can provide a wide range of co-benefits (e.g., climate regulation, air quality regulation), but also generate some negative effects (e.g., mobility issues, unsafety, allergens). We develop and implement a Discrete Choice Experiment survey to analyse people’s perception of co-benefits and negative effects, and associated preferences for the two types of NBS at a catchment scale. The results obtained from 400 households living in a French Mediterranean catchment highlight that people associate numerous co-benefits to NBS, but also negative effects. Our estimations reveal that resident households are ready to contribute large amounts through a tax increase for the development of NBS (from 140 to 180 EUR/year, on average). There is however a strong heterogeneity of preferences at the catchment scale influenced by income, location of the respondent along an urban–rural gradient, and perception of the importance of ecosystem services. These differences may reflect urban environmental inequalities at the catchment scale, which are important to take into account in order to avoid distributive inequalities.

Australian Consumers’ Preferences for Food Attributes: A Latent Profile Analysis

Understanding consumer food preferences can provide agribusinesses with a competitive advantage through meeting consumers’ needs. Consumers’ preferences for food attributes have been extensively examined, focusing on specific aspects of attributes with specific food products. It is less clear how consumers evaluate the relative importance of the key food attributes in general. Applying the commonly adopted classification of food attributes into endogenous attributes (i.e., safety and freshness) and exogenous attributes (i.e., genetically modified (GM)-free and organic), the relative importance of these attributes for consumers was investigated. Furthermore, the heterogeneity of preferences was explored to identify distinct subgroups of consumers who may differ in valuing various food attributes. An online survey of 489 city dwellers in Australia revealed that the endogenous attributes were regarded as the most important in an order of safety and freshness. The exogenous attributes were rated as much less important. Three profiles with distinctive preferences for food attributes were identified: Not Fussy (12% of participants), Quality First (49%) and Choosy (39%). The findings suggest that consumers value the importance of various food attributes in a hierarchical order, and there is significant heterogeneity in consumers’ food preference. The implications of these findings are discussed in the context of food policy and agribusiness decision-making.

Incorporating Integrative Perspectives into Impact Reduction Management in a Reef Recreation Area

The act of balancing two sustainability goals, the conservation of ecosystem services, and allowing access to reef recreational areas is a big challenge for the management of marine protected areas (MPAs). This study evaluates tourist preferences towards integrative aspects of an impact reduction program in a reef recreation area. We find that by integrating the marine police institution, providing educational training, setting up control of the number of divers, setting up control of the experience area, and taking boats to the snorkeling point are the key factors. We also identify the features that affect the heterogeneity of preferences with impact reduction management in the MPAs as follows: (1) monthly income; (2) type of tourist; and (3) joining conservation groups, and the integrated program generate the highest welfare value. These results can be applied to create a suitable management strategy for sustainable reef tourism that meets the needs of stakeholders.