IDEAS home Printed from https://ideas.repec.org/p/ags/aare03/58200.html
   My bibliography  Save this paper

Capturing Preference Heterogeneity in Stated Choice Models: A Random Parameter Logit Model of the Demand for GM Food

Author

Listed:
  • Rigby, Dan
  • Burton, Michael P.

Abstract

Analyses of data from random utility models of choice data have typically used fixed parameter representations, with consumer heterogeneity introduced by including factors such as the age, gender etc of the respondent. However, there is a class of models that assume that the underlying parameters of the estimated model (and hence preferences) are different for each individual within the sample, and that choices can be explained by identifying the parameters of the distribution from which they are drawn. Such a random parameter model is applied to stated choice data from the UK, and the results compared with standard fixed parameter models. The results provide new evidence of preferences for various aspects of the UK food system, particularly in relation to GM food but other environmental and technical aspects also. Indications of how random parameter models might be developed further are discussed on the basis of these results.

Suggested Citation

  • Rigby, Dan & Burton, Michael P., 2003. "Capturing Preference Heterogeneity in Stated Choice Models: A Random Parameter Logit Model of the Demand for GM Food," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 58200, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare03:58200
    DOI: 10.22004/ag.econ.58200
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/58200/files/2003_rigbyburton.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rousu, Matthew C. & Huffman, Wallace E. & Shogren, Jason F. & Tegene, Abebayehu, 2002. "The Value Of Verificable Information In A Controversial Market: Evidence From Lab Auctions Of Genetically Modified Food," Working Papers 18212, Iowa State University, Department of Economics.
    2. Lusk, Jayson L. & Daniel, M. Scott & Mark, Darrell R. & Lusk, Christine L., 2001. "Alternative Calibration And Auction Institutions For Predicting Consumer Willingess To Pay For Nongenetically Modified Corn Chips," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-18, July.
    3. Huffman, Wallace E. & Tegene, Abebayehu, 2002. "Public Acceptance of and Benefits from Agricultural Biotechnology: A Key Role for Verifiable Information," Staff General Research Papers Archive 10430, Iowa State University, Department of Economics.
    4. Boccaletti, Stefano & Nardella, Michele, 2000. "Consumer Willingness To Pay For Pesticide-Free Fresh Fruit And Vegetables In Italy," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(3), pages 1-14.
    5. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
    6. Huffman, Wallace E. & Tegene, Abebayehu, 2002. "Public Acceptance of and Benefits from Agricultural Biotechnology: A Key Role for Verifiable Information," Staff General Research Papers Archive 10435, Iowa State University, Department of Economics.
    7. Huffman, Wallace E. & Shogren, Jason F. & Rousu, Matthew & Tegene, Abe, 2001. "The Value of Consumers of Genetically Modified Food Labels in a Market with Diverse Information: Evidence from Experimental Auctions," ISU General Staff Papers 200112010800001346, Iowa State University, Department of Economics.
    8. Baker, Gregory A. & Burnham, Thomas A., 2001. "Consumer Response To Genetically Modified Foods: Market Segment Analysis And Implications For Producers And Policy Makers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-17, December.
    9. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
    10. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
    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. William Kaye‐Blake & Kathryn Bicknell & Caroline Saunders, 2005. "Process versus product: which determines consumer demand for genetically modified apples?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(4), pages 413-427, December.
    2. Mike Fitzpatrick & Christos D. Maravelias & Ole Ritzau Eigaard & Stephen Hynes & David Reid, 2014. "Modelling FIshers' preferences for alternative management options under the Common Fisheries Policy," Working Papers 262565, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    3. Kaye-Blake, William & Bicknell, Kathryn & Saunders, Caroline M., 2005. "Process versus product: which determines consumer demand for genetically modified apples?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(4), pages 1-15.
    4. Houessionon, P. & Fonta, W. M. & Bossa, A. Y. & Sanfo, S. & Thiombiano, N. & Zahonogo, P. & Yameogo, T. B. & Balana, Bedru, "undated". "Economic valuation of ecosystem services from small-scale agricultural management interventions in Burkina Faso: a discrete choice experiment approach," Papers published in Journals (Open Access) H048370, International Water Management Institute.
    5. Camarena-Gomez, Dena M. & Sanjuan, Ana Isabel, 2005. "Walnut Preferences in Spain: Is the Spanish Consumer Ready for New Varieties?," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24749, European Association of Agricultural Economists.
    6. Prosper Houessionon & William M. Fonta & Aymar Y. Bossa & Safiétou Sanfo & Noel Thiombiano & Pam Zahonogo & Thomas B. Yameogo & Bedru Balana, 2017. "Economic Valuation of Ecosystem Services from Small-Scale Agricultural Management Interventions in Burkina Faso: A Discrete Choice Experiment Approach," Sustainability, MDPI, Open Access Journal, vol. 9(9), pages 1-16, September.
    7. William H. Kaye-Blake & Caroline M. Saunders & Selim Cagatay, 2008. "Genetic Modification Technology and Producer Returns: The Impacts of Productivity, Preferences, and Technology Uptake," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(4), pages 692-710.
    8. Jesús Barreiro-Hurlé & José Gómez-Limón, 2008. "Reconsidering Heterogeneity and Aggregation Issues in Environmental Valuation: A Multi-attribute Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 40(4), pages 551-570, August.
    9. Edel Doherty & Brendan Kennelly & Darragh Flannery & Stephen Kynes & John Considine, 2013. "Student preferences for assignment systems: Results from a discrete choice experiment in Irish universities," Working Papers WP052013, University of Limerick, Department of Economics, revised Sep 2013.
    10. Doherty, Edel & Campbell, Danny, 2011. "Demand for improved food safety and quality: a cross-regional comparison," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108791, Agricultural Economics Society.

    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. D Rigby & M Burton, 2003. "Modeling Indifference and Dislike: A Bounded Bayesian Mixed Logit Model of the UK Market for GM Food," The School of Economics Discussion Paper Series 0327, Economics, The University of Manchester.
    2. Wallace E. Huffman & Matthew Rousu & Jason F. Shogren & Abebayehu Tegene, 2004. "Who Do Consumers Trust for Information: The Case of Genetically Modified Foods?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1222-1229.
    3. Huffman, Wallace E. & Rousu, Matthew & Shogren, Jason F. & Tegene, Abebayehu, 2007. "The effects of prior beliefs and learning on consumers' acceptance of genetically modified foods," Journal of Economic Behavior & Organization, Elsevier, vol. 63(1), pages 193-206, May.
    4. Matthew Rousu & Wallace E. Huffman & Jason F. Shogren & Abebayehu Tegene, 2007. "Effects And Value Of Verifiable Information In A Controversial Market: Evidence From Lab Auctions Of Genetically Modified Food," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 409-432, July.
    5. Novikova, Anastasija & Rocchi, Lucia & Vitunskienė, Vlada, 2017. "Assessing the benefit of the agroecosystem services: Lithuanian preferences using a latent class approach," Land Use Policy, Elsevier, vol. 68(C), pages 277-286.
    6. Chiadmi, Ines & Traoré, Sidnoma Abdoul Aziz & Salles, Jean-Michel, 2020. "Asian tiger mosquito far from home: Assessing the impact of invasive mosquitoes on the French Mediterranean littoral," Ecological Economics, Elsevier, vol. 178(C).
    7. Huffman, Wallace & Rousu, Matthew & Shogren, Jason F. & Tegene, Abebayehu, 2003. "Better Dead Than GM-Fed? Information and the Effects of Consumers' Resistance to GM-Foods in High-Income Countries," Staff General Research Papers Archive 10345, Iowa State University, Department of Economics.
    8. Franceschinis, Cristiano & Thiene, Mara & Scarpa, Riccardo & Rose, John & Moretto, Michele & Cavalli, Raffaele, 2017. "Adoption of renewable heating systems: An empirical test of the diffusion of innovation theory," Energy, Elsevier, vol. 125(C), pages 313-326.
    9. Marco A. Palma & Alba J. Collart & Christopher J. Chammoun, 2015. "Information Asymmetry in Consumer Perceptions of Quality-Differentiated Food Products," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(3), pages 596-612, November.
    10. Collins Asante‐Addo & Daniela Weible, 2020. "Is there hope for domestically produced poultry meat? A choice experiment of consumers in Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 281-298, April.
    11. Stine Broch & Suzanne Vedel, 2012. "Using Choice Experiments to Investigate the Policy Relevance of Heterogeneity in Farmer Agri-Environmental Contract Preferences," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(4), pages 561-581, April.
    12. Rocchi, L. & Cortina, C. & Paolotti, L. & Massei, G. & Fagioli, F.F. & Antegiovanni, P. & Boggia, A., 2019. "Provision of ecosystem services from the management of Natura 2000 sites in Umbria (Italy): Comparing the costs and benefits, using choice experiment," Land Use Policy, Elsevier, vol. 81(C), pages 13-20.
    13. Dannenberg, Astrid, 2008. "Is it Who You Ask or How You Ask? Findings of a Meta-Analysis on Genetically Modified Food Valuation Studies," ZEW Discussion Papers 08-096, ZEW - Leibniz Centre for European Economic Research.
    14. Catalina M. Torres & Sergio Colombo & Nick Hanley, 2014. "Incorrectly accounting for preference heterogeneity in choice experiments: what are the implications for welfare measurement?," DEA Working Papers 65, Universitat de les Illes Balears, Departament d'Economía Aplicada.
    15. Danso, G. K. & Otoo, Miriam & Duy Linh, N. & Madurangi, Ganesha, "undated". "Households’ willingness-to-pay for fish product attributes and implications for market feasibility of wastewater-based aquaculture businesses in Hanoi, Vietnam," Papers published in Journals (Open Access) H048216, International Water Management Institute.
    16. Chun-Lin Lee & Chiung-Hsin Wang & Chun-Hung Lee & Supasit Sriarkarin, 2019. "Evaluating the Public’s Preferences toward Sustainable Planning under Climate and Land Use Change in Forest Parks," Sustainability, MDPI, Open Access Journal, vol. 11(11), pages 1-18, June.
    17. Kim, Hyerin & Shoji, Yasushi & Tsuge, Takahiro & Aikoh, Tetsuya & Kuriyama, Koichi, 2020. "Understanding services from ecosystem and facilities provided by urban green spaces: A use of partial profile choice experiment," Forest Policy and Economics, Elsevier, vol. 111(C).
    18. 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.
    19. Huffman, Wallace E. & Shogren, Jason F. & Rousu, Matthew C. & Tegene, Abebayehu, 2003. "Consumer Willingness to Pay for Genetically Modified Food Labels in a Market with Diverse Information: Evidence from Experimental Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(3), pages 1-22, December.
    20. Dannenberg, Astrid, 2009. "The dispersion and development of consumer preferences for genetically modified food -- A meta-analysis," Ecological Economics, Elsevier, vol. 68(8-9), pages 2182-2192, June.

    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:aare03:58200. See general information about how to correct material in RePEc.

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

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.