Continuous Equilibria with Heterogeneous Preferences and Unspanned Endowments

2009 ◽  
Author(s):  
Kasper Larsen
Keyword(s):  
Heterogeneous Preferences

scholarly journals Effects of Ad-hoc Data Truncation and Homogeneous Preferences on Recreational Demand and Values: An Application to the George Washington and Jefferson National Forests

2021 ◽  
pp. 1-15
Author(s):  
Kavita Sardana ◽  
John C. Bergstrom ◽  
J. M. Bowker
Keyword(s):  
Latent Class ◽  
Ad Hoc ◽  
Cost Model ◽  
Consumer Surplus ◽  
Poisson Model ◽  
Travel Cost ◽  
National Forests ◽  
Heterogeneous Preferences ◽  
George Washington ◽  
Travel Cost Model

Abstract We estimate a travel cost model for the George Washington & Jefferson National Forests using an On-Site Latent Class Poisson Model. We show that the constraints of ad-hoc truncation and homogenous preferences significantly impact consumer surplus estimates derived from the on-site travel cost model. By relaxing the constraints, we show that more than one class of visitors with unique preferences exists in the population. The resulting demand functions, price responsive behaviors, and consumer surplus estimates reflect differences across these classes of visitors. With heterogeneous preferences, a group of ‘local residents’ exists with a probability of 8% and, on average take 113 visits.

scholarly journals Optimal Policy with Heterogeneous Preferences

2008 ◽  
Vol 8 (1) ◽  
Author(s):  
Louis Kaplow
Keyword(s):  
Social Welfare ◽  
Public Goods ◽  
Optimal Policy ◽  
Income Tax ◽  
Social Welfare Function ◽  
Income Taxation ◽  
Heterogeneous Preferences ◽  
Commodity Taxation ◽  
Policy Rules ◽  
The Social

Abstract Optimal policy rules—including those regarding income taxation, commodity taxation, public goods, and externalities—are typically derived in models with homogeneous preferences. This article reconsiders many central results for the case in which preferences for commodities, public goods, and externalities are heterogeneous. When preference differences are observable, standard second-best results in basic settings are unaffected, except those for the optimal income tax. Optimal levels of income taxation may be higher, the same, or lower on types who derive more utility from various goods, depending on the nature of preference differences and the concavity of the social welfare function. When preference differences are unobservable, all policy rules may change. The determinants of even the direction of optimal rule adjustments are many and subtle.

Customer Review Provision Policies with Heterogeneous Cluster Preferences

2021 ◽  
Author(s):  
Shihong Xiao ◽  
Ying-Ju Chen ◽  
Christopher S. Tang
Keyword(s):  
Operations Management ◽  
Consumer Welfare ◽  
Geographic Region ◽  
Heterogeneous Cluster ◽  
Heterogeneous Preferences ◽  
Experience Goods ◽  
The Third ◽  
Experience Good ◽  
Common User

Companies often post user-generated reviews online so that potential buyers in different clusters (age, geographic region, occupation, etc.) can learn from existing customers about the quality of an experience good and cluster preferences before purchasing. In this paper, we evaluate two common user-generated review provision policies for selling experience goods to customers in different clusters with heterogeneous preferences. The first policy is called the association-based policy (AP) under which a customer in a cluster can only observe the aggregate review (i.e., average rating) generated by users within the same cluster. The second policy is called the global-based policy (GP) under which each customer is presented with the aggregate review generated by all users across clusters. We find that, in general, the firm benefits from a policy that provides a larger number of “relevant reviews” to customers. When customers are more certain about the product quality and when clusters are more diverse, AP is more profitable than GP because it provides cluster-specific reviews to customers. Otherwise, GP is more profitable as it provides a larger number of less relevant reviews. Moreover, we propose a third provision policy that imparts the union of the information by AP and GP and show that it is more profitable for the firm. Although the third policy always renders a higher consumer welfare than GP, it may generate a lower consumer welfare than AP. This paper was accepted by Martínez-de-Albéniz Victor, operations management.

scholarly journals Heterogeneous Preferences for Oysters: Evidence from Field Experiments

2017 ◽  
Vol 46 (2) ◽  
pp. 296-314 ◽  
Author(s):  
Tongzhe Li ◽  
Maik Kecinski ◽  
Kent D. Messer
Keyword(s):  
Logit Model ◽  
Field Experiments ◽  
Consumer Preferences ◽  
Revealed Preference ◽  
Older Individuals ◽  
Heterogeneous Preferences ◽  
Adult Participants ◽  
Negative Effect ◽  
Choice Tasks ◽  
Positive Effect

This study uses field experiments to investigate consumer preferences for oysters. In total, 486 adult participants completed a series of revealed-preference dichotomous-choice tasks and a demographic survey. Using a random effects logit model, we investigate factors that influence participants’ decisions to purchase oysters. As expected, price had a significant negative effect, while income had a positive effect. Older individuals and those who were relatively selective regarding shell color or smell are less likely to buy oysters, but consumers who valued size, oyster species, and harvest location were willing to pay more.

scholarly journals Heterogeneous Preferences and the Effects of Incentives in Promoting Conservation Agriculture in Malawi

2015 ◽  
Author(s):  
Patrick S. Ward ◽  
Andrew Bell ◽  
Gregory Parkhurst ◽  
Klaus Droppelmann ◽  
Lawrence Mapemba
Keyword(s):  
Conservation Agriculture ◽  
Heterogeneous Preferences
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