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An Application of Mixed Logit Estimation in the Analysis of Producers’ Stated Preferences AgEcon
Kipperberg, Gorm; Bond, Craig A.; Hoag, Dana L..
This paper analyzes Colorado Corn producers’ preferences over both private- and environmental public-good production system attributes. Current production practices are characterized by intensive water and chemical use, resulting in non-point source pollution to water bodies as well as soil erosion problems. Data from a stated preference survey are employed to analyze key attributes of experimentally configured irrigation systems, proposed as alternatives to current practices. Panel mixed logit estimations find positive preferences for profit, risk reduction, and, importantly, systems with less environmental impact in terms of nitrate leaching and soil erosion. The results also find presence of significant preference heterogeneity and a complementary...
Tipo: Working or Discussion Paper Palavras-chave: Agricultural production; Profit-maximization; Environment; Mixed logit; Stated preference; Attribute part-worth; Nitrate leaching; Soil erosion; Risk; Crop Production/Industries; C10; D62; Q12; Q15; Q51.
Ano: 2008 URL: http://purl.umn.edu/108719
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Combining mixed logit models and random effects models to identify the determinants of willingness to pay for rural landscape improvements AgEcon
Campbell, Danny.
This paper reports the findings from a discrete choice experiment study designed to estimate the economic benefits associated with rural landscape improvements in Ireland. Using a mixed logit model, the panel nature of the dataset is exploited to retrieve willingness to pay values for every individual in the sample. This departs from customary approaches in which the willingness to pay estimates are normally expressed as measures of central tendency of an a priori distribution. In a different vein from analysis conducted in previous discrete choice experiment studies, this paper uses random effects models for panel data to identify the determinants of the individual-specific willingness to pay estimates. In comparison with the standard methods used to...
Tipo: Conference Paper or Presentation Palavras-chave: Agri-environment; Discrete choice experiments; Mixed logit; Panel data; Random effects; Willingness to pay; Demand and Price Analysis; Environmental Economics and Policy; C33; C35; Q24; Q51.
Ano: 2007 URL: http://purl.umn.edu/7975
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Consumer Impact of Animal Welfare Regulation in the California Poultry Industry AgEcon
Allender, William J.; Richards, Timothy J..
This study examines the consumer welfare impact of animal welfare legislation mandating cage-free egg production in California. We estimate California egg consumers’ willingness to pay (WTP) for cage-free eggs using household-level purchase data and compare the implied premium to higher production costs when calculating the potential change in consumer surplus. Our findings suggest that larger households and/or households with limited means are most likely to be affected. Furthermore, the implied welfare loss for consumers is approximately $106 million. Although consumers value cage-free eggs, higher production costs result in a net welfare loss to consumers. One implication of this finding is that a clear labeling practice may be a more efficient way to...
Tipo: Journal Article Palavras-chave: Animal welfare regulation; California poultry; Egg prices; Egg supply; Hen housing; Mixed logit; Willingness to pay; Livestock Production/Industries.
Ano: 2010 URL: http://purl.umn.edu/97856
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Consumer preferences for extra virgin olive oil with country-of-origin and geographical indication labels in Canada AgEcon
Menapace, Luisa; Colson, Gregory; Grebitus, Carola; Facendola, Maria.
This paper investigates the impact of geographical origin labels on consumers' preferences. Specifically, we consider the preferences of Canadian consumers for extra virgin olive oils marketed with country-of-origin labels (COOL) and geographical indications (GIs). In contrast to previous studies, by considering a third-country market (a market different from that where production occurs), we can look simultaneously at COOL and GIs and separate the impacts of these two forms of geographical origin labels. We find that, within the context of a high quality value-added commodity such as extra virgin olive oil, consumers value both COOL and GI labels. But, in terms of the fraction of consumers with positive preferences and willingness to pay, COOL labels...
Tipo: Conference Paper or Presentation Palavras-chave: Country of origin labeling; Extra-virgin olive oil; Geographical indications of origin; Mixed logit; PDO/PGI; Stated-choice experiments; Consumer/Household Economics; Demand and Price Analysis.
Ano: 2008 URL: http://purl.umn.edu/6430
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Consumers Valuations and Choice Processes of Food Safety Enhancement Attributes: An International Study of Beef Consumers AgEcon
Tonsor, Glynn T.; Schroeder, Ted C.; Pennings, Joost M.E.; Mintert, James R..
Food safety concerns have had dramatic impacts on food and livestock markets in recent years. Here we examine consumer preferences for various beef food safety assurances. In particular, we evaluate the extent to which such preferences are heterogeneous within and across country-of-residence defined groups and examine the distributional nature of these preferences with respect to marginal improvements in food safety. We collected data from over 4,000 U.S., Canada, Japan, and Mexican consumers. Using mixed logit models we find that Japanese and Mexican consumers have WTP preferences that are nonlinear in the level of food safety risk reduction. Conversely, U.S .and Canadian consumers appear to possess linear preferences. These results suggest that optimal...
Tipo: Conference Paper or Presentation Palavras-chave: Consumer beef preference; Food safety; Investment decision; Mixed logit; Willingness-to-pay; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety.
Ano: 2007 URL: http://purl.umn.edu/9976
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Consumers’ willingness to pay for food safety: the case of mycotoxins in milk AgEcon
Sckokai, Paolo; Moro, Daniele; Cuomo, Enrica.
European statistics show that one of the most widespread source of health risks related to food is mycotoxins. The objective of this paper is to evaluate the Italian consumers’ perception of the mycotoxins’ risk and, more specifically, their willingness-to-pay (WTP) for a hypothetical bottle of milk obtained by cows in which the feed ration contains maize certified for the ‘good practices’ that reduce such risk. For this purpose, a web-based stated choice (SC) experiment involving a representative sample of 973 Italian consumers has been carried out and WTP has been measured using the panel data version of a Random Parameters Logit (RPL) model. The results show that Italian consumers are willing to pay a rather high average price premium for...
Tipo: Conference Paper or Presentation Palavras-chave: Food safety; Mycotoxins; Willingness to pay; Mixed logit; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Health Economics and Policy; C35; D12.
Ano: 2010 URL: http://purl.umn.edu/116411
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Consumer's WTP for Environment-Friendly Production Methods and Collective Reputation for Place of Origin: The Case of Val di Gresta's Carrots AgEcon
Scarpa, Riccardo; Thiene, Mara; Marangon, Francesco.
This paper investigates preferences for various environment-friendly production system for carrots using discretechoice multi-attribute stated-preference data amongst buyers and explore the effect of collective reputations from growers of an Alpine valley known to be completely dedicated to organic production. Results show that buyers distinctly recognize only organic production as a production system different from the conventional one, and there is some evidence of recognition of collective reputation. As well as for marginal utility of income, substantial unobserved heterogeneity is found for many skin imperfections, origin from the organic Alpine valley and the organic production methods. The implied sample distributions of WTP for each of these random...
Tipo: Conference Paper or Presentation Palavras-chave: Choice modelling; Mixed logit; Organic products; Marginal utility of income; Unobserved taste heterogeneity; Status-quo bias; Heteroskedasticity; Crop Production/Industries; Environmental Economics and Policy; C15; C25; Q13; Q18.
Ano: 2006 URL: http://purl.umn.edu/25637
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Dynamics of Heterogeneous Congestion Tolerance in the Location Choices of U.S. Gulf of Mexico Shrimp Fishermen AgEcon
Ran, Tao; Keithly, Walter R., Jr.; Kazmierczak, Richard F., Jr..
Location choice is one of the most important short-run decisions made by commercial fishermen. Previous studies of location choice by commercial fishermen have focused primarily on site fidelity, profit-maximization behavior, and risk attitudes as factors influencing their location choice behavior. Although the recreational literature gives extensive consideration to the influence of congestion on site selection, few studies have considered the influence of congestion tolerance on site selection in the commercial fishing sector. This study uses a mixed logit model to analyze the heterogeneous congestion tolerance in location choice among U.S. Gulf of Mexico shrimp fishermen. The dynamics of fishermen responses to economic conditions are compared and...
Tipo: Conference Paper or Presentation Palavras-chave: Location choice; Congestion; Mixed logit; Shrimp fishery; Resource /Energy Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/49213
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Estimating Mixed Logit Recreation Demand Models With Large Choice Sets AgEcon
Domanski, Adam.
Discrete choice models are widely used in studies of recreation demand. They have proven valuable when modeling situations where decision makers face large choice sets and site substitution is important. However, when the choice set faced by the individual becomes very large (on the order of hundreds or thousands of alternatives), computational limitations make estimation with the full choice set intractable. Sampling of alternatives in a conditional logit framework is an effective method to limit computational burdens while still producing consistent estimates. This method is allowed by the existence of the independence of irrelevant alternatives (IIA) assumption. More advanced mixed logit models account for unobserved preference heterogeneity and...
Tipo: Conference Paper or Presentation Palavras-chave: Sampling of alternatives; Discrete choice; Mixed logit; Conditional logit; Recreational demand; Wisconsin; Fishing; Microeconometrics; Environmental Economics and Policy; Research Methods/ Statistical Methods.
Ano: 2009 URL: http://purl.umn.edu/49413
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Fishing for more understanding: a mixed logit-error component model of freshwater angler site choice AgEcon
Beville, Stephen; Kerr, Geoffrey N..
Recreational anglers are known to seek different types of experiences in different settings. Such preference and behavioural diversity has important management implications. Research methods which assume only a limited degree of preference heterogeneity and impose rigid substitution patterns can impair understanding of individual’s unique decision process and lead to misguided management and policy recommendations. This paper reports results from an internet-based stated preference survey of recreational trout anglers in the North Canterbury Region of New Zealand. A mixed logit model, which simultaneously specifies random parameters plus error components, is used to capture the extent of random preference heterogeneity in systematic utility along with...
Tipo: Conference Paper or Presentation Palavras-chave: Random utility model; Latent class; Mixed logit; Error component; Heterogeneity; Recreational angler.
Ano: 2009 URL: http://purl.umn.edu/48038
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Fishing for Understanding: A Mixed Logit Model of Freshwater Angler Preferences AgEcon
Beville, Stephen; Kerr, Geoffrey N..
Freshwater fisheries management requires knowledge of not only the resource but angler preferences and the extent to which preferences vary. This paper reports results from an internet-based stated preference survey of anglers in the North Canterbury region. Discrete choice models are used to investigate how the quality of fishery attributes impact anglers’ selection of fishing sites. The models reveal significant preference heterogeneity between anglers for particular fishing site attributes. Furthermore, anglers’ preference intensities for identical attributes vary between sites. Consequently, efficient allocation of resources entails spatial and social components.
Tipo: Conference Paper or Presentation Palavras-chave: Discrete choice analysis; Latent class; Mixed logit; Angler heterogeneity; New Zealand recreational trout fisheries; Agricultural and Food Policy; Environmental Economics and Policy; Research Methods/ Statistical Methods.
Ano: 2008 URL: http://purl.umn.edu/96446
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Fitting mixed logit models by using maximum simulated likelihood AgEcon
Hole, Arne Risa.
This article describes the mixlogit Stata command for fitting mixed logit models by using maximum simulated likelihood.
Tipo: Article Palavras-chave: Mixlogit; Mixlpred; Mixlcov; Mixed logit; Maximum simulated likelihood; Research Methods/ Statistical Methods.
Ano: 2007 URL: http://purl.umn.edu/119283
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Got (Safe) Milk? Chinese Consumers’ Valuation for Select Food Safety Attributes AgEcon
Ortega, David L.; Wang, H. Holly; Wu, Laping; Bai, Junfei; Olynk, Nicole J..
Food safety issues often arise from problems of asymmetric information between consumers and suppliers of food with regards to product-specific attributes or characteristics. Food safety concerns in China are having a drastic impact on consumer behavior, commodity markets, international trade and food security. An additional challenge to the problem of asymmetric information lies in the inherent structure of the governing bodies which oversee food safety and quality. Unlike the United States and other developed countries, China’s food safety is regulated by several government entities with different and sometimes overlapping responsibilities. As a result consumers don’t have a comprehensive food safety and quality system on which to base their economic...
Tipo: Conference Paper or Presentation Palavras-chave: China; Choice experiment; Mixed logit; Latent class logit; Food safety; Preference heterogeneity; Willingness-to-pay; Food Consumption/Nutrition/Food Safety; International Relations/Trade; Marketing; Q11; Q18.
Ano: 2011 URL: http://purl.umn.edu/98723
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None-of-These Bias in Stated Choice Experiments AgEcon
Alfnes, Frode; Steine, Gro.
We conduct a within-sample test of hypothetical bias and parameter equality between a hypothetical stated choice (SC) experiment using pictures and a real choice (RC) experiments using products. With exception of the none-of-these alternative-specific dummy, we cannot reject parameter equality between the two datasets. However, when we estimate the models separately with no parameter restrictions, the SC experiment gave WTP estimates that were approximately 50 percent higher and marginal WTP estimates that were almost two times as high as the corresponding estimates from the RC experiment. However, even though the monetary value of the WTP disparity was large, the disparity between the WTP estimates from the two data sets was not statistically significant.
Tipo: Conference Paper or Presentation Palavras-chave: Choice experiment; Hypothetical bias; Color; Mixed logit; Salmon; Willingness to pay; Consumer/Household Economics; C81; C93; D12; Q22.
Ano: 2005 URL: http://purl.umn.edu/24761
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Obesity and Nutrient Consumption: A Rational Addiction? AgEcon
Richards, Timothy J.; Patterson, Paul M.; Tegene, Abebayehu.
Widespread obesity in the U.S. is a relatively recent phenomenon, reaching epidemic proportions only in the last 15 years. However, existing research shows that while calorie expenditure through physical activity has not changed appreciably since 1980, calorie consumption has risen dramatically. Consequently, any explanation of obesity must address the reason why consumers tend to overeat in spite of somewhat obvious future health implications. This study tests for an addiction to food nutrients as a potential explanation for the obesity epidemic. Specifically, we use a random coefficients (mixed) logit model applied to household scanner data to test a multivariate version of the rational addiction model of Becker and Murphy and Chaloupka. We find evidence...
Tipo: Working or Discussion Paper Palavras-chave: Addiction; Demand; Mixed logit; Nutrients; Obesity.; Food Consumption/Nutrition/Food Safety.
Ano: 2004 URL: http://purl.umn.edu/28539
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Precaution and Protectionism: GM Food and the WTO AgEcon
Rigby, Dan; Burton, Michael P.; Young, Trevor.
The dispute between the US and EU over GM foods at the WTO is examined in terms of the issues it raises about protectionism and environmental protection and precaution. The issue of whether GM, GM Derived and Non-GM foods are equivalent to each other is examined using data from a national choice modelling study in the UK. These categories of food are critical since they underpin the EU's new food labelling regime which it hoped would defuse the WTO dispute. The results are analysed using a Bayesian mixed logit model which allows greater flexibility in the modelling of preference distributions. This is particularly crucial where, as in this case, bi-modal distributions are identified with some indifferent or mildly averse to GM foodtypes while others are...
Tipo: Conference Paper or Presentation Palavras-chave: GM food; Mixed logit; WTP; Bayesian; WTO; International Relations/Trade; C11; C24; C25; D12; Q18.
Ano: 2005 URL: http://purl.umn.edu/24447
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Precaution and Protectionism: 'Likeness' and GM Food at the WTO AgEcon
Rigby, Dan; Burton, Michael P.; Young, Trevor.
The dispute between the US and EU over GM foods at the WTO is examined in terms of the issues it raises about protectionism, environmental protection and precaution. The issue of whether GM, GM Derived and Non-GM foods are equivalent to each other is examined using data from a national choice modelling study in the UK. These categories of food are critical since they underpin the EU's new food labelling regime which it hoped would defuse the WTO dispute. The results are analysed using a Bayesian mixed logit model which allows greater flexibility in the modelling of preference distributions than that allowed through classical estimation. The Bayesian approach allows the use of censored normal and Johnson's SB distributions which can accommodate a bounded...
Tipo: Conference Paper or Presentation Palavras-chave: GM food; Mixed logit; WTP; Bayesian; WTO; International Relations/Trade; Q51; Q55; Q56; Q58.
Ano: 2006 URL: http://purl.umn.edu/25503
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Retail and Wholesale Market Power in Organic Foods AgEcon
Richards, Timothy J.; Acharya, Ram N.; Molina, Ignacio.
The demand for organic fresh fruits and vegetable continues to grow at a rate far higher than the rest of the produce industry. The cost of meeting organic certification standards, however, has meant that supply has been slow to adjust. With limited supply, we hypothesize that organic suppliers enjoy more market power in bargaining over their share of the retail-production cost margin for fresh apples. We test this hypothesis using a random parameters, generalized extreme value demand model (mixed logit) combined with a structural model of retail and wholesale pricing that allows conduct to vary by product attributes (organic or non-organic) and time. We find that organic growers do indeed earn a larger share of the total margin than non-organic...
Tipo: Conference Paper or Presentation Palavras-chave: Organics; Market power; Mixed logit; Game theory; Non-linear pricing.; Industrial Organization; C35; D12; D43; L13; L41; Q13..
Ano: 2009 URL: http://purl.umn.edu/49329
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Standard and Shuffled Halton Sequences in a Mixed Logit Model AgEcon
Staus, Alexander.
Modeling consumer choice in different areas has lead to an increase use of discrete choice models. Probit or Multinomial Logit Models are often the base of further empirical research of consumer choice. In some of these models the equations to solve have no closed-form expression. They include multi-dimensional integrals which can not be solved analytically. Simulation methods have been developed to approximate a solution for these integrals. This paper describes the Standard Halton sequence and a modification of it, the Shuffled Halton sequence. Both are simulation methods which can reduce computational effort compared to a random sequence. We compare the simulation methods in their coverage of the multi-dimensional area and in their estimation results...
Tipo: Working or Discussion Paper Palavras-chave: Simulation; Mixed logit; Halton sequence; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; C15; C25.
Ano: 2008 URL: http://purl.umn.edu/93856
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The Effect of Label Information on Farmers’ Pesticide Choice AgEcon
Hasing, Tomas; Carpio, Carlos E.; Willis, David B.; Sydorovych, Olha; Marra, Michele C..
The general objective of this study was to analyze the effect of labeling information on farmers’ herbicide choice. Herbicide choices made by farmers were used to estimate their willingness to pay for different herbicide attributes. Estimation results indicate that human health and environmental statements displayed on pesticide labels (which reflect higher level of risk) are important components in herbicide selection. For example, it is estimated that farmers are willing to pay, on average, $27 per acre to avoid using an herbicide with the word “Warning” and $38 per acre to avoid using an herbicide with the word “Danger.”
Tipo: Conference Paper or Presentation Palavras-chave: Mixed logit; Household production models; Non-nested models.; Demand and Price Analysis; Environmental Economics and Policy.
Ano: 2010 URL: http://purl.umn.edu/61131
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