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Using flexible taste distributions to value collective reputation for environmentally-friendly production methods

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Author Info
Ricardo Scarpa () (University of Waikato)
Mara Thiene () (University of Padua)
Francesco Marangon () (University of Udine)

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Abstract

In this paper we investigate consumer preferences for various environmentally-friendly production systems for carrots. We use discrete-choice multi-attribute stated-preference data to explore the effect of the collective reputation of growers from an Alpine valley with an established reputation for its environmentally-friendly production: Val di Gresta “the valley of organic orchards”. Data analysis of the panel of discrete responses identifies unobserved taste heterogeneity for organic, biodynamic and place of origin along with extra variance associated with experimentally designed alternatives. The assumed parametric taste distributions are each tested using the semi-nonparametric specification proposed by Fosgerau and Bierlaire (2007), while the null of normality cannot be rejected for organic and biodynamic production methods, it is rejected for the place of origin. The latter is found to be bi-modal, with modes at each side of zero. The use of a flexible taste distribution increases the plausibility of this form of heterogeneity and it appears promising for future applied studies.

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File URL: ftp://mngt.waikato.ac.nz/RePEc/wai/econwp/0724.pdf
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Publisher Info
Paper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 07/24.

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Length: 25 pages
Date of creation: 11 Nov 2007
Date of revision:
Handle: RePEc:wai:econwp:07/24

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Related research
Keywords: Mixed logit; Flexible taste distributions; Random utility parameters; Collective reputation; Sustainable agriculture; Choice modeling; Environmentally-friendly methods;

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Find related papers by JEL classification:
C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Statistical Simulation Methods
C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models
Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dan Rigby & Michael Burton, 2005. "Preference heterogeneity and GM food in the UK," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 32(2), pages 269-288, June.
  2. Jill E. Hobbs & DeeVon Bailey & David L. Dickinson & Morteza Haghiri, 2005. "Traceability in the Canadian Red Meat Sector: Do Consumers Care?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(1), pages 47-65, 03. [Downloadable!] (restricted)
  3. Fosgerau, Mogens & Bierlaire, Michel, 2007. "A practical test for the choice of mixing distribution in discrete choice models," Transportation Research Part B: Methodological, Elsevier, vol. 41(7), pages 784-794, August. [Downloadable!] (restricted)
  4. Herriges, Joseph A & Phaneuf, Daniel J, 2002. " Inducing Patterns of Correlation and Substitution in Repeated Logit Models of Recreation Demand," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 84(4), pages 1076-90, November. [Downloadable!] (restricted)
  5. Herriges, Joseph & Phaneuf, Daniel, 2002. "Inducing Patterns Correlation and Substitution in Repeated Logit Model of Recreation Demand," Staff General Research Papers 5035, Iowa State University, Department of Economics.
  6. Roosen, Jutta & Lusk, Jayson L. & Fox, John A., 2001. "Consumer Demand For And Attitudes Toward Alternative Beef Labeling Strategies In France, Germany, And The Uk," 2001 Annual meeting, August 5-8, Chicago, IL 20643, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  7. Hess, Stephane & Train, Kenneth E. & Polak, John W., 2006. "On the use of a Modified Latin Hypercube Sampling (MLHS) method in the estimation of a Mixed Logit Model for vehicle choice," Transportation Research Part B: Methodological, Elsevier, vol. 40(2), pages 147-163, February. [Downloadable!] (restricted)
  8. Riccardo Scarpa & Mara Thiene, 2004. "Destination Choice Models for Rock Climbing in the Northeast Alps: A Latent-Class Approach Based on Intensity of Participation," Working Papers 2004.131, Fondazione Eni Enrico Mattei. [Downloadable!]
  9. Jason A. Winfree & Jill J. McCluskey, 2005. "Collective Reputation and Quality," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 87(1), pages 206-213, 02. [Downloadable!] (restricted)
    Other versions:
  10. Mogens Fosgerau & Michel Bierlaire, 2005. "A practical test for the choice of mixing distribution in a discrete choice model," Econometrics 0512002, EconWPA. [Downloadable!]
  11. Cuyno, Leah C. M. & Norton, George W. & Rola, Agnes, 2001. "Economic analysis of environmental benefits of integrated pest management: a Philippine case study," Agricultural Economics, Blackwell, vol. 25(2-3), pages 227-233, September. [Downloadable!] (restricted)
  12. Dan Rigby & Mike Burton, 2006. "Modeling Disinterest and Dislike: A Bounded Bayesian Mixed Logit Model of the UK Market for GM Food," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 33(4), pages 485-509, 04. [Downloadable!] (restricted)
  13. Ferrini, Silvia & Scarpa, Riccardo, 2007. "Designs with a priori information for nonmarket valuation with choice experiments: A Monte Carlo study," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 342-363, May. [Downloadable!] (restricted)
  14. Chris Arnot & Peter C. Boxall & Sean B. Cash, 2006. "Do Ethical Consumers Care About Price? A Revealed Preference Analysis of Fair Trade Coffee Purchases," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 555-565, December. [Downloadable!] (restricted)
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