IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/7076.html
   My bibliography  Save this article

A Choice Model with Systematic Structures in Decision Weights

Author

Listed:
  • Hu, Wuyang

Abstract

This article introduces a discrete choice model which incorporates a nonlinear structural adjustment to the standard utility coefficients or decision weights. The proposed model is theoretically and empirically appealing when compared to several alternative approaches, and it can be estimated by conventional maximum likelihood. Application of the proposed model in a case study shows that it outperforms two competing approaches in model fit. Given its simplicity, this model is also capable of revealing consumers' heterogeneous choices. It is shown that based on consumers' different characteristics, their product choice and its welfare implications are also potentially different.

Suggested Citation

  • Hu, Wuyang, 2007. "A Choice Model with Systematic Structures in Decision Weights," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(3), pages 1-14, December.
    • Handle: RePEc:ags:jlaare:7076
    DOI: 10.22004/ag.econ.7076
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/7076/files/32030462.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.7076?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bhat, Chandra R., 1995. "A heteroscedastic extreme value model of intercity travel mode choice," Transportation Research Part B: Methodological, Elsevier, vol. 29(6), pages 471-483, December.
    2. Lusk, Jayson L. & Jamal, Mustafa & Kurlander, Lauren & Roucan, Maud & Taulman, Lesley, 2005. "A Meta-Analysis of Genetically Modified Food Valuation Studies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(1), pages 1-17, April.
    3. DeShazo, J. R. & Fermo, German, 2002. "Designing Choice Sets for Stated Preference Methods: The Effects of Complexity on Choice Consistency," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 123-143, July.
    4. Wuyang Hu, 2005. "Logit models: smallest versus largest extreme value error distributions," Applied Economics Letters, Taylor & Francis Journals, vol. 12(12), pages 741-744.
    5. Wuyang Hu & Michele Veeman & Wiktor Adamowicz & Ge Gao, 2006. "Consumers' Food Choices with Voluntary Access to Genetic Modification Information," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 585-604, December.
    6. Wuyang Hu & Wiktor L. Adamowicz & Michele M. Veeman, 2006. "Labeling Context and Reference Point Effects in Models of Food Attribute Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 1034-1049.
    7. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    8. Wuyang Hu, 2004. "Trading off health, environmental and genetic modification attributes in food," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(3), pages 389-408, September.
    9. Timothy J. Gilbride & Greg M. Allenby, 2004. "A Choice Model with Conjunctive, Disjunctive, and Compensatory Screening Rules," Marketing Science, INFORMS, vol. 23(3), pages 391-406, October.
    10. Edward Morey & Jennifer Thacher & William Breffle, 2006. "Using Angler Characteristics and Attitudinal Data to Identify Environmental Preference Classes: A Latent-Class Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(1), pages 91-115, May.
    11. Geraldine Fennell & Greg Allenby & Sha Yang & Yancy Edwards, 2003. "The Effectiveness of Demographic and Psychographic Variables for Explaining Brand and Product Category Use," Quantitative Marketing and Economics (QME), Springer, vol. 1(2), pages 223-244, June.
    12. Nitin Mehta & Surendra Rajiv & Kannan Srinivasan, 2003. "Price Uncertainty and Consumer Search: A Structural Model of Consideration Set Formation," Marketing Science, INFORMS, vol. 22(1), pages 58-84, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wuyang Hu, 2008. "Modeling discrete choices with augmented perception hurdles," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 257-267, September.
    2. Linhai Wu & Pingping Liu & Xiujuan Chen & Wuyang Hu & Xuesen Fan, 2021. "Contents of product attributes and the decoy effect: A study on traceable pork from the perspective of consumer utility," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 974-984, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hu, Wuyang, 2006. "Effects of Endogenous Task Complexity and the Endowed Bundle on Stated Choice," 2006 Annual meeting, July 23-26, Long Beach, CA 21437, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Mikolaj Czajkowski & Nick Hanley & Jacob LaRiviere, 2015. "The Effects of Experience on Preferences: Theory and Empirics for Environmental Public Goods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(1), pages 333-351.
    3. Araña, Jorge E. & León, Carmelo J., 2009. "Understanding the use of non-compensatory decision rules in discrete choice experiments: The role of emotions," Ecological Economics, Elsevier, vol. 68(8-9), pages 2316-2326, June.
    4. Hu, Wuyang & Chen, Kevin Z. & Yoshida, Kentaro, 2006. "Japanese Consumers’ Perceptions on and Willingness to Pay for Credence Attributes Associated with Canola Oil," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(1), pages 1-13, April.
    5. Nicolas Krucien & Amiram Gafni & Nathalie Pelletier‐Fleury, 2015. "Empirical Testing of the External Validity of a Discrete Choice Experiment to Determine Preferred Treatment Option: The Case of Sleep Apnea," Health Economics, John Wiley & Sons, Ltd., vol. 24(8), pages 951-965, August.
    6. Peter Lenk, 2014. "Bayesian estimation of random utility models," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 20, pages 457-497, Edward Elgar Publishing.
    7. repec:sss:wpaper:201405 is not listed on IDEAS
    8. Campbell, Danny & Boeri, Marco & Doherty, Edel & George Hutchinson, W., 2015. "Learning, fatigue and preference formation in discrete choice experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 345-363.
    9. Hyowon Kim & Dong Soo Kim & Greg M. Allenby, 2020. "Benefit Formation and Enhancement," Quantitative Marketing and Economics (QME), Springer, vol. 18(4), pages 419-468, December.
    10. Bond, Craig A. & Thilmany, Dawn D. & Bond, Jennifer Keeling, 2008. "What to Choose? The Value of Label Claims to Fresh Produce Consumers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), pages 1-26.
    11. Marit Kragt & Jeffrey Bennett, 2012. "Attribute Framing in Choice Experiments: How Do Attribute Level Descriptions Affect Value Estimates?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(1), pages 43-59, January.
    12. F Alpizar & F Carlsson & P Martinsson, 2003. "Using Choice Experiments for Non-Market Valuation," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 83-110, March.
    13. Kosenius, Anna-Kaisa, 2013. "Preference discontinuity in choice experiment: Determinants and implications," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 138-145.
    14. West, Grant H. & Snell, Heather & Kovacs, Kent & Nayga, Rodolfo M., 2020. "Estimation of the preferences for the intertemporal services from groundwater," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304220, Agricultural and Applied Economics Association.
    15. Regier, Dean A. & Watson, Verity & Burnett, Heather & Ungar, Wendy J., 2014. "Task complexity and response certainty in discrete choice experiments: An application to drug treatments for juvenile idiopathic arthritis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 50(C), pages 40-49.
    16. Eunae Son & Song Soo Lim, 2021. "Consumer Acceptance of Gene-Edited versus Genetically Modified Foods in Korea," IJERPH, MDPI, vol. 18(7), pages 1-17, April.
    17. Jesús Barreiro‐Hurle & Azucena Gracia & Tiziana De‐Magistris, 2010. "The Effects of Multiple Health and Nutrition Labels on Consumer Food Choices," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 426-443, June.
    18. Kikulwe, Enoch & Birol, Ekin & Wesseler, Justus & Falck-Zepeda, José, 2009. "A latent class approach to investigating consumer demand for genetically modified staple food in a developing country: The case of GM bananas in Uganda," IFPRI discussion papers 938, International Food Policy Research Institute (IFPRI).
    19. Jie Zhang, 2006. "An Integrated Choice Model Incorporating Alternative Mechanisms for Consumers' Reactions to In-Store Display and Feature Advertising," Marketing Science, INFORMS, vol. 25(3), pages 278-290, 05-06.
    20. Canavari, Maurizio & Tisselli, Farid & Nayga, Rodolfo M., Jr. & Scarpa, Riccardo, 2009. "Italian Consumer Acceptance of Nutritionally Enhanced GM Food," 2009 Conference, August 16-22, 2009, Beijing, China 51651, International Association of Agricultural Economists.
    21. Garavaglia, Christian & Mariani, Paolo, 2015. "How Much Do Consumers Value PDO Certifications? Estimates of WTP for PDO Dry-Cured Ham in Italy," 145th Seminar, April 14-15, 2015, Parma, Italy 200376, European Association of Agricultural Economists.

    More about this item

    Keywords

    Demand and Price Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:7076. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.