Willingness-to-pay estimation with mixed logit models: some new evidence
AbstractMixed-logit models are currently the state of the art in discrete-choice modelling, and their estimation in various forms (in particular, mixing revealed-preference and stated-preference data) is becoming increasingly popular. Although the theory behind these models is fairly simple, the practical problems associated with their estimation with empirical data are still relatively unknown and certainly not solved to everybody's satisfaction. In this paper we use a stated-preference dataset -- previously used to derive willingness to pay for reduction in atmospheric pollution and subjective values of time -- to estimate random parameter mixed logit models with different estimation methods. We use our results to discuss in some depth the problems associated with the derivation of willingness to pay with this class of models.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Pion Ltd, London in its journal Environment and Planning A.
Volume (Year): 37 (2005)
Issue (Month): 3 (March)
Contact details of provider:
Web page: http://www.pion.co.uk
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Beharry-Borg, Nesha & Scarpa, Riccardo, 2010. "Valuing quality changes in Caribbean coastal waters for heterogeneous beach visitors," Ecological Economics, Elsevier, vol. 69(5), pages 1124-1139, March.
- Saelensminde, Kjartan, 2006. "Causes and consequences of lexicographic choices in stated choice studies," Ecological Economics, Elsevier, vol. 59(3), pages 331-340, September.
- Celine Michaud & Daniel Llerena & Iragael Joly, 2013.
"Willingness to pay for environmental attributes of non-food agricultural products: a real choice experiment,"
European Review of Agricultural Economics,
Foundation for the European Review of Agricultural Economics, vol. 40(2), pages 313-329, March.
- Michaud, C. & Llerena, D. & Joly, I., 2012. "Willingness to pay for environmental attributes of non-food agricultural products: a real choice experiment," Working Papers 201201, Grenoble Applied Economics Laboratory (GAEL).
- OrtÃºzar, Juan de Dios & Simonetti, Carolina, 2008. "Modelling the demand for medium distance air travel with the mixed data estimation method," Journal of Air Transport Management, Elsevier, vol. 14(6), pages 297-303.
- Campbell, Danny, 2007. "Combining mixed logit models and random effects models to identify the determinants of willingness to pay for rural landscape improvements," 81st Annual Conference, April 2-4, 2007, Reading University 7975, Agricultural Economics Society.
- Elisabetta Cherchi & Juan Dios Ortúzar, 2008. "Empirical Identification in the Mixed Logit Model: Analysing the Effect of Data Richness," Networks and Spatial Economics, Springer, vol. 8(2), pages 109-124, September.
- Danny Campbell & W. George Hutchinson & Riccardo Scarpa, 2006.
"Lexicographic Preferences in Discrete Choice Experiments: Consequences on Individual-Specific Willingness to Pay Estimates,"
2006.128, Fondazione Eni Enrico Mattei.
- Danny Campbell & George Hutchinson & Riccardo Scarpa, 2006. "Lexicographic preferences for rural environmental landscape improvements: implications on individual-specific willingness to pay estimates," Working Papers 0610, Rural Economy and Development Programme,Teagasc.
- Hensher, David A. & Rose, John M. & Ortúzar, Juan de Dios & Rizzi, Luis I., 2009. "Estimating the willingness to pay and value of risk reduction for car occupants in the road environment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(7), pages 692-707, August.
- Francisco Javier Amador Morera & Rosa Marina González Marrero, 2005. "Value of Travel Time Savings for University Students and Preference Heterogeneity," Hacienda Pública Española, IEF, vol. 174(3), pages 25-41, September.
- Veisten, Knut & Flügel, Stefan & Rizzi, Luis I. & Ortúzar, Juan de Dios & Elvik, Rune, 2013. "Valuing casualty risk reductions from estimated baseline risk," Research in Transportation Economics, Elsevier, vol. 43(1), pages 50-61.
- Hole, Arne Risa, 2008.
"Modelling heterogeneity in patients' preferences for the attributes of a general practitioner appointment,"
Journal of Health Economics,
Elsevier, vol. 27(4), pages 1078-1094, July.
- Arne Risa Hole, 2007. "Modelling Heterogeneity in Patients' Preferences for the Attributes of a General Practitioner Appointment," Working Papers 022cherp, Centre for Health Economics, University of York.
- Rojo, Marta & Gonzalo-Orden, Hernán & dell’Olio, Luigi & Ibeas, Ángel, 2012. "Relationship between service quality and demand for inter-urban buses," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1716-1729.
- Willis, Ken & Scarpa, Riccardo & Gilroy, Rose & Hamza, Neveen, 2011. "Renewable energy adoption in an ageing population: Heterogeneity in preferences for micro-generation technology adoption," Energy Policy, Elsevier, vol. 39(10), pages 6021-6029, October.
- Anastassiadis, Friederike & Liebe, Ulf & Musshoff, Oliver, 2012. "Finanzielle Flexibilität In Landwirtschaftlichen Investitionsentscheidungen: Ein Discrete Choice Experiment," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137142, German Association of Agricultural Economists (GEWISOLA).
- Navarrete, Francisca Javiera & Ortúzar, Juan de Dios, 2013. "Subjective valuation of the transit transfer experience: The case of Santiago de Chile," Transport Policy, Elsevier, vol. 25(C), pages 138-147.
- Kjaer, Trine & Gyrd-Hansen, Dorte, 2008. "Preference heterogeneity and choice of cardiac rehabilitation program: Results from a discrete choice experiment," Health Policy, Elsevier, vol. 85(1), pages 124-132, January.
- Yáñez, M.F. & Raveau, S. & Ortúzar, J. de D., 2010. "Inclusion of latent variables in Mixed Logit models: Modelling and forecasting," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(9), pages 744-753, November.
- Espino, Raquel & de Dios Ortúzar, Juan & Román, Concepción, 2007. "Understanding suburban travel demand: Flexible modelling with revealed and stated choice data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(10), pages 899-912, December.
- Francisco Amador & Rosa González & Juan Dios Ortúzar, 2008. "On Confounding Preference Heterogeneity and Income Effect in Discrete Choice Models," Networks and Spatial Economics, Springer, vol. 8(2), pages 97-108, September.
- Klaus Nowotny & Dieter Pennerstorfer, 2011.
"Ethnic Networks and the Location Choice of Migrants in Europe,"
WIFO Working Papers
- Nowotny, Klaus & Pennerstorfer, Dieter, 2012. "Ethnic Networks and the Location Choice of Migrants in Europe," Working Papers in Economics and Finance 2012-7, University of Salzburg.
- Hensher, David A., 2010. "Hypothetical bias, choice experiments and willingness to pay," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 735-752, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Neil Hammond).
If references are entirely missing, you can add them using this form.