scholarly journals Revealed Preferences for Diamond Goods

2018 ◽  
Vol 10 (2) ◽  
pp. 83-117 ◽  
Author(s):  
Sam Cosaert
Keyword(s):  
Willingness To Pay ◽  
Observational Data ◽  
Revealed Preference ◽  
Conspicuous Consumption ◽  
Nonparametric Test ◽  
Revealed Preferences ◽  
Marginal Willingness To Pay ◽  
Monitoring Survey

When consumers care not only for the quantity but also the value of a product, it could be rational to purchase products as they become more expensive. This study provides nonparametric—revealed preference—conditions to measure consumers' marginal willingness to pay for value (i.e., diamondness) associated with particular goods. This is the first nonparametric test of price-dependent preferences. The proposed diamondness measure is applied to observational data from the Russia Longitudinal Monitoring Survey. The results show that this diamondness measure is related to a product's visibility to society, which indicates a certain degree of conspicuous consumption. (JEL D12, P36)

scholarly journals Willingness-to-pay for CO2 offsets: A large-scale field study on revealed preferences in the aviation

2021 ◽  
Author(s):  
Francisco Schlöder ◽  
Sebastian Berger ◽  
Andreas Kilchenmann ◽  
Oliver Lenz
Keyword(s):  
Willingness To Pay ◽  
Field Study ◽  
Effect Size ◽  
Large Scale ◽  
Stated Preference ◽  
Revealed Preference ◽  
Revealed Preferences ◽  
Final Sample ◽  
Climate Action ◽  
Large Scale Field

Studies assessing people’s willingness-to-pay for carbon offsets are overwhelmingly grounded in hypothetical stated-preference approaches. Here, we report on a large-scale observational field study involving a final sample of 63,520 bookings made with a European airline, allowing us to gauge willingness-to-pay for offsets in a revealed-preference approach. Our pre-registered study shows that the median willingness-to-pay to voluntarily offset a ton of CO2 from flight-related emissions is zero, with the mean willingness-to-pay being around 1 EUR. Neither prices of the offset nor airfares are predictive of offsetting behavior in a highly powered sample. Climate vulnerability of the destination has no significant impact on the compensation decision either. On the other hand, higher ancillary spending is associated with an increased likelihood to compensate, even though the effect size is low due to the general unwillingness to internalize flight-related emissions. Additionally, we find the choice of a vegetarian meal to be of similar predictive power (significant, but low in effect size given an overall low proportion of passengers choosing a vegetarian meal). Our results inform existing research on stated preferences as well as mitigation efforts relying on voluntary climate action.

scholarly journals Do millennials value travel time differently because of productive multitasking? A revealed-preference study of Northern California commuters

2021 ◽  
Author(s):  
Aliaksandr Malokin ◽  
Giovanni Circella ◽  
Patricia L. Mokhtarian
Keyword(s):  
Older Adults ◽  
Young Adults ◽  
Willingness To Pay ◽  
Travel Time ◽  
Choice Model ◽  
Mode Choice ◽  
Revealed Preference ◽  
Northern California ◽  
Factors Affecting ◽  
The Impact

AbstractMillennials, the demographic cohort born in the last two decades of the twentieth century, are reported to adopt information and communication technologies (ICTs) in their everyday lives, including travel, to a greater extent than older generations. As ICT-driven travel-based multitasking influences travelers’ experience and satisfaction in various ways, millennials are expected to be affected at a greater scale. Still, to our knowledge, no previous studies have specifically focused on the impact of travel multitasking on travel behavior and the value of travel time (VOTT) of young adults. To address this gap, we use an original dataset collected among Northern California commuters (N = 2216) to analyze the magnitude and significance of individual and household-level factors affecting commute mode choice. We estimate a revealed-preference mode choice model and investigate the differences between millennials and older adults in the sample. Additionally, we conduct a sensitivity analysis to explore how incorporation of explanatory factors such as attitudes and propensity to multitask while traveling in mode choice models affects coefficient estimates, VOTT, and willingness to pay to use a laptop on the commute. Compared to non-millennials, the mode choice of millennials is found to be less affected by socio-economic characteristics and more strongly influenced by the activities performed while traveling. Young adults are found to have lower VOTT than older adults for both in-vehicle (15.0% less) and out-of-vehicle travel time (15.7% less), and higher willingness to pay (in time or money) to use a laptop, even after controlling for demographic traits, personal attitudes, and the propensity to multitask. This study contributes to better understanding the commuting behavior of millennials, and the factors affecting it, a topic of interest to transportation researchers, planners, and practitioners.

scholarly journals Post-COVID-19 travel behaviour patterns: impact on the willingness to pay of users of public transport and shared mobility services in Spain

2021 ◽  
Vol 13 (1) ◽  
Author(s):  
Samir Awad-Núñez ◽  
Raky Julio ◽  
Juan Gomez ◽  
Borja Moya-Gómez ◽  
Julián Sastre González
Keyword(s):  
Willingness To Pay ◽  
Public Transport ◽  
Nationwide Survey ◽  
Travel Behaviour ◽  
Revealed Preferences ◽  
Trip Purpose ◽  
Willingness To Adopt ◽  
Shared Mobility ◽  
Considerable Impact ◽  
Willingness To Use

Abstract Background The COVID-19 crisis has meant a significant change in the lifestyle of millions of people worldwide. With a lockdown that lasted almost three months and an impulse to new normality, transport demand has suffered a considerable impact in the Spanish case. It is mandatory to explore the effect of the pandemic on changes in travel behaviour in post-COVID-19 times. Methodology A nationwide survey was carried out during the lockdown in Spring 2020 to overview the recent changes. The survey collected both stated preferences (socio-demographic characteristics and mobility-related attributes), and revealed preferences (individuals’ habits, especially in the frequency of the trips according to the trip purpose, and opinions regarding the willingness and acceptability of these changes, and which actors would have to drive them, and how) of individuals. This paper aims to study and understand the willingness to adopt a set of measures to improve the safety conditions of public transport and shared mobility services against possible contagion from COVID-19 and the willingness to pay for them. Results The results obtained show that some measures, such as the increase of supply and vehicle disinfection, result in a greater willingness to use public transport in post-COVID-19 times. Similarly, the provision of covers for handlebars and steering wheels also significantly increases individuals’ willingness to use sharing services. However, respondents expect that these measures and improvements would be implemented but maintaining the same pre-COVID-19 prices. The results of this research might help operators deploy strategies to adopt their services and retain users.

scholarly journals Analysis of Consumer Preference for Milk Produced through Sustainable Farming: The Case of Mountainous Dairy Farming

2020 ◽  
Vol 12 (7) ◽  
pp. 3039 ◽  
Author(s):  
Kyungsoo Nam ◽  
Heesun Lim ◽  
Byeong-il Ahn
Keyword(s):  
Willingness To Pay ◽  
Dairy Products ◽  
Consumer Preference ◽  
Dairy Farming ◽  
Economic Feasibility ◽  
Consumer Group ◽  
Sustainable Farming ◽  
Livestock Farming ◽  
Marginal Willingness To Pay ◽  
Production Pattern

As income is rising and urbanization progressing, the consumption of meat and dairy products is increasing, especially in developing countries. However, increasing livestock production leads to challenges that need to be addressed, such as yielding environmental pollution and causing climate change. Due to these circumstances, the importance of sustainable livestock farming has been highlighted in order to effectively utilize natural resources and to protect the environment. We analyzed consumers’ preference and willingness to pay for milk, one of the representative dairy products, which was produced in a sustainable way. Among the various attributes of milk, marginal willingness to pay for “performing sustainability” through mountainous farming was estimated to be the biggest. The willingness to pay was revealed to be higher for the consumer group with a high awareness of sustainable farming than the consumer group with low awareness. The empirical results in this study suggest that it is important to consider the economic feasibility of dairy farming by forming a consensus with consumers through publicity and changing the production pattern to promote sustainability.

scholarly journals Stochastic Revealed Preferences with Measurement Error

2020 ◽  
Author(s):  
Victor H Aguiar ◽  
Nail Kashaev
Keyword(s):  
International Economic ◽  
Measurement Error ◽  
Panel Data ◽  
Revealed Preference ◽  
Revealed Preferences ◽  
Data Sets ◽  
Single Individual ◽  
Data Set ◽  
International Economic Review ◽  
New Evidence

Abstract A long-standing question about consumer behaviour is whether individuals’ observed purchase decisions satisfy the revealed preference (RP) axioms of the utility maximization theory (UMT). Researchers using survey or experimental panel data sets on prices and consumption to answer this question face the well-known problem of measurement error. We show that ignoring measurement error in the RP approach may lead to overrejection of the UMT. To solve this problem, we propose a new statistical RP framework for consumption panel data sets that allows for testing the UMT in the presence of measurement error. Our test is applicable to all consumer models that can be characterized by their first-order conditions. Our approach is non-parametric, allows for unrestricted heterogeneity in preferences and requires only a centring condition on measurement error. We develop two applications that provide new evidence about the UMT. First, we find support in a survey data set for the dynamic and time-consistent UMT in single-individual households, in the presence of nonclassical measurement error in consumption. In the second application, we cannot reject the static UMT in a widely used experimental data set in which measurement error in prices is assumed to be the result of price misperception due to the experimental design. The first finding stands in contrast to the conclusions drawn from the deterministic RP test of Browning (1989, International Economic Review, 979–992). The second finding reverses the conclusions drawn from the deterministic RP test of Afriat (1967, International Economic Review, 8, 6–77) and Varian (1982, Econometrica, 945–973).

scholarly journals Masked Heterogeneity in Aggregation: Incorporating Beliefs and Geographic Information into Consumer Willingness to Pay for State Brands

2020 ◽  
Vol 52 (4) ◽  
pp. 527-544
Author(s):  
Meagan Osburn ◽  
Rodney B. Holcomb ◽  
Clinton L. Neill
Keyword(s):  
Willingness To Pay ◽  
Random Parameter ◽  
Geographic Information ◽  
Agricultural Products ◽  
Logit Models ◽  
Aggregate Model ◽  
Marginal Willingness To Pay ◽  
Disaggregate Model ◽  
Random Parameter Logit ◽  
State Region

AbstractState marketing programs for food and agricultural products are largely driven by consumers’ desires to purchase in-state products. Evaluations of state marketing programs have largely ignored consumer location and proximity to surrounding states, measures of ethnocentrism, and the presence of other geographic marketing labels. This study examines willingness to pay for own and out-of-state labels for a generic commodity, milk, within an eight-state region. The results show that an aggregate model conceals consumer heterogeneity in marginal willingness to pay values for state brands as compared to a disaggregate model, even when using random parameter logit models.

scholarly journals Estimating the Marginal Willingness to Pay for Commuting

2000 ◽  
Vol 40 (3) ◽  
pp. 541-563 ◽  
Author(s):  
Jos Van Ommeren ◽  
Gerard J. Van Den Berg ◽  
Cees Gorter
Keyword(s):  
Willingness To Pay ◽  
Marginal Willingness To Pay

scholarly journals A Revealed Preference Ranking of U.S. Colleges and Universities *

2012 ◽  
Vol 128 (1) ◽  
pp. 425-467 ◽  
Author(s):  
Christopher N. Avery ◽  
Mark E. Glickman ◽  
Caroline M. Hoxby ◽  
Andrew Metrick
Keyword(s):  
Revealed Preference ◽  
National Sample ◽  
Preference Ranking ◽  
Revealed Preferences ◽  
Admissions Policies ◽  
High Achieving Students ◽  
Strategic Manipulation ◽  
Early Decision ◽  
Using Data ◽  
Undergraduate Programs

Abstract We present a method of ranking U.S. undergraduate programs based on students’ revealed preferences. When a student chooses a college among those that have admitted him, that college “wins” his “tournament.” Our method efficiently integrates the information from thousands of such tournaments. We implement the method using data from a national sample of high-achieving students. We demonstrate that this ranking method has strong theoretical properties, eliminating incentives for colleges to adopt strategic, inefficient admissions policies to improve their rankings. We also show empirically that our ranking is (1) not vulnerable to strategic manipulation; (2) similar regardless of whether we control for variables, such as net cost, that vary among a college’s admits; (3) similar regardless of whether we account for students selecting where to apply, including Early Decision. We exemplify multiple rankings for different types of students who have preferences that vary systematically.

Hunters' preferences and willingness to pay for driven hunts in southern Europe

2016 ◽  
Vol 43 (8) ◽  
pp. 649 ◽  
Author(s):  
Mario Soliño ◽  
Begoña A. Farizo ◽  
Pablo Campos
Keyword(s):  
Willingness To Pay ◽  
Wild Boar ◽  
Wildlife Management ◽  
Southern Europe ◽  
Free Range ◽  
Small Game ◽  
Marginal Willingness To Pay ◽  
Game Hunting ◽  
Big Game Hunting ◽  
Wild Boar Hunting

Context Driven hunts exemplify the most representative form of big-game hunting in southern Europe. Aims We analysed hunter preferences for driven hunts and the marginal willingness to pay for their characteristics. Methods We conducted a discrete-choice experiment for driven hunts, taking into account the number of deer that could be hunted, the possibility of free-range wild-boar hunting, the presence of trophies, and other characteristics of driven hunts, such as congestion and travel time. Key results The highest influential driven-hunt characteristic on the utility of big-game hunters is the presence of trophy specimens, whereas for the small-game hunter it would be free-range wild-boar hunting. Conclusions Small-game hunters are reluctant to participate in the big-game market because of cultural factors and not because of budgetary restrictions. Implications Wildlife management and marketing of driven hunts can be improved taking into account the hunter preferences.

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