Dollars or Cents: Impacts of Rescaling Data on a Mixed Logit Model with Normally and Lognormally Distributed Coefficients

It is a common practice to rescale data to assist the model estimation process. This paper describes a case where care is called upon when interpreting the results after rescaling. The case is shown as associated with the lognormally distributed coefficient in a mixed logit model. Implications of rescaling data on a normally distributed coefficient are also given for comparison.Research Methods/ Statistical Methods,

Exploring Heterogeneity in Consumers’ Meat Store Choices in an Emerging Market

Chinese consumers’ choices among meat stores are examined through a model that can capture consumer heterogeneities both in their opinion of various store attributes and in how much weight they attach to each attribute. This approach not only informs store managers as to what attributes should receive focus for improving their store images, but also provides insight about which specific attribute could be improved to achieve the most effective result. Based on the individual-level parameters obtained through an empirical Bayes analysis, managers or competitors are able to strategically target their store promotions to specific individual consumers based on their demographic characteristics.heterogeneity, individual-level parameters, logit models, meat store, Livestock Production/Industries, Research and Development/Tech Change/Emerging Technologies,

Modeling Yeah- and Nay-Saying to Alternatives in Conjoint Experiments

Using a series of hurdle choice models, this study considers both nay-saying and yeah-saying to alternatives offered in a conjoint experiment. These behaviors are characterized by respondents persistently choosing the no-choice alternative or choosing at least one of the non-empty options offered in a survey. Results show that jointly consider nay-saying and yeah-saying in a two-hurdle model drastically improves model fit; welfare implications based on hurdle models are also different from those based on models without hurdle specification.conjoint experiment, hurdle choice model, yeah and nay-saying, Research Methods/ Statistical Methods, D12, C25,

Effects of Endogenous Task Complexity and the Endowed Bundle on Stated Choice

Conventionally, studies examining the impacts of choice complexity only consider complexity introduced exogenously from the tasks respondents face. In the context of a stated conjoint survey, this article establishes endogenous complexity measures through decision-makers' experience known as the endowed bundle before the survey. Results show that complexity should not only be defined exogenously. Endogenous complexity measures are important in determining the utility associated with an alternative and the decision of whether to participate in the market. In addition, some of these complexity effects are nonlinear. We also show that exogenous complexity simultaneous affects the choice consistency.Complexity, Endowed Bundle, Random Utility, Stated Choice, Research Methods/ Statistical Methods, C81, D12,

AT-HOME SEAFOOD CONSUMPTION IN KENTUCKY: A DOUBLE-HURDLE MODEL APPROACH

This study investigates demographic and socioeconomic factors contributing to at-home consumption of seafood in Kentucky through a 2010 survey. The Tobit and Cragg’s double-hurdle model are analyzed and tested. Numbers of people in the household, household income, race and employment status are significant determinants of at-home seafood consumption in Kentucky.Food Consumption/Nutrition/Food Safety, Seafood consumption, At-home, Kentucky, Double-Hurdle Model,

Using a Modified Payment Card Survey on Chinese Consumers’ Willingness to Pay for Fair Trade Coffee: Would the Starting Point Matter

Coffee consumption in China is increasing rapidly over the recent years. This study offers one of the few initial attempts to not only understand general consumption behavior associated with Chinese coffee, but to explore the viability of niche markets for coffee with the credence attribute “fair trade”. A modified payment card approach was adopted as the consumer willingness to pay elicitation method. Survey results of 564 consumers from the city of Wuhan, China suggest a positive attitude toward coffee as an alternative drink and a willingness to pay a premium for “fair trade” coffee. This study also explores and describes the potential impact of starting point bias, which has been relatively well documented in the dichotomous choice literature but has not been thoroughly addressed in a payment card context.coffee, fair trade, payment card, starting point bias, willingness to pay, Agribusiness, Consumer/Household Economics, Food Security and Poverty, International Development, Marketing, Research Methods/ Statistical Methods, D12, Q13,

Consumers’ Purchasing Intentions for Vegetable Oil in the Presence of Generic or Specific Information on Genetic Modification

In combination with the emergence of genetically modified (GM) food, there has been an urgent call for GM labeling to provide relevant information disclosure. Using data collected in Beijing, China, this study attempts to address the issue of whether different types of information may have distinct impacts on consumers’ stated purchasing decisions. Three types of information are used in this study: one is generic and the other two are linked with two important implications of GM technology—human health and the environment. Results verify that consumers’ purchasing decisions are affected by different types of information through their attitudes and personal characteristics. This finding has potential implications for establishing various GM marketing strategies and information campaigns.China, genetically modified (GM) food, labeling information, probit model, vegetable oil, Agribusiness, Food Consumption/Nutrition/Food Safety,

Actual Media Reports on GM Foods and Chinese Consumers' Willingness to Pay for GM Soybean Oil

Information has been proven to have significant impacts on consumers' behavior and willingness to pay (WTP). In this study, information on GM soybean oil is given in the form of real-life cases involving GM food. These cases recorded from actual media reports. Using a hybrid of the double-bounded and payment care elicitation approaches, Chinese consumers' WTP for soybean oil is examined both before and after these cases are presented to them. Results indicate that media reports on positive cases do not increase consumers' WTP significantly, while reports on negative cases drastically lower their WTP.Chinese consumers, double-bounded, soybean oil, willingness to pay, Consumer/Household Economics, Demand and Price Analysis,

Health Risk of Heating Fuel Choice: A Simultaneity Causality Analysis

Combustion-generated pollutants, principally those from solid-fuels including biomass and coal when cooking and heating, bring out a significant public health hazard in both developed and developing countries. Most of the existing studies addressing this issue focus on developing countries, and on exposure when cooking rather than heating. By using Kentucky rural data, this research explores the health risk associated with heating fuel choice. Given the simultaneity between heating fuel choice and prevalence of asthma and allergy, we obtain the instrumental variable (IV) estimate for Logit models through the Generalized Method of Moments (GMM). After correcting for simultaneity bias, we do not find strong evidence supporting the causal relationship between polluting heating use and the prevalence of asthma, allergy, and other respiratory disease. Some demographic and lifestyle factors do have significant effects on the prevalence of these diseases.combustion-generated pollutants, indoor air pollution, heating fuel choice, health risk, GMM-IV Estimation, Environmental Economics and Policy, Health Economics and Policy, Q53, I18,

Rider Preferences and Values of Equestrian Trail Characteristics in Kentucky

A conjoint analysis of equestrian trail characteristics (trail length, scenic views, open land, bathroom/shower facilities, restricted use, distance, and entrance fee) is conducted for the state of Kentucky. The conditional logit results show location is an important determiner of willingness to pay. In particular, scenic views and restricted use are highly valued (WTP above $20). However, increased distance from home to the trail results in a negative willingness to pay.Equestrian trail characteristics, Conditional logit, Conjoint analysis, Environmental Economics and Policy,