Search results
1 – 10 of 521Patients and health professionals often make decisions which involve a choice between discrete alternatives. This chapter reviews the econometric methods which have been developed…
Abstract
Patients and health professionals often make decisions which involve a choice between discrete alternatives. This chapter reviews the econometric methods which have been developed for modelling discrete choices and their application in the health economics literature. We start by reviewing the multinomial and mixed logit models and then consider issues such as scale heterogeneity, estimation in willingness to pay space and attribute non-attendance.
Details
Keywords
Zhao Ding, Awudu Abdulai and Yuansheng Jiang
This article examines the impact of experience on rural households' preferences for microfinance attributes, using household data from Sichuan province in China.
Abstract
Purpose
This article examines the impact of experience on rural households' preferences for microfinance attributes, using household data from Sichuan province in China.
Design/methodology/approach
We use the Bayesian updating method to account for the learning process involved in acquiring experience on microfinance. We then use the generalized multinomial logit model that accounts for both preference and scale heterogeneity to estimate the choice probabilities and impact of experience on preferences and willingness-to-pay (WTP) for microfinance.
Findings
The empirical findings show that experience with microfinance products or lending institutions helps households in their selections of microfinance institutions. In particular, experience with financial institutions increase the scale parameter and help respondents to feel assured about their choices, while experience with individual lenders have no such effects. The results also indicate that the willingness-to-pay estimates vary across experiences, with WTP for installment credit displaying the biggest change and the Bayesian updating making the changes even much larger.
Originality/value
This study contributes to the research gap by taking experience as a latent variable that influences personal specific tastes and as an integral part of total utility of rural households in their decision-making processes. We develop a conceptual framework that is based on McFadden's random utility theory and Bayesian inference.
Details
Keywords
Cristina Escobar, Zein Kallas and José M. Gil
Important socioeconomic changes have been undergone due to the international economic crisis. In Catalonia (Spain), political changes towards independentism also occurred within…
Abstract
Purpose
Important socioeconomic changes have been undergone due to the international economic crisis. In Catalonia (Spain), political changes towards independentism also occurred within the same period. The purpose of this paper is to explore the consumers’ wine preferences in Catalonia in two different scenarios. In particular, the authors have focussed the interest in those preferences regarding the regional origin of the wine.
Design/methodology/approach
Data were elicited from two identical discrete choice experiments performed in two times: before (2008) and during the economic crisis (2010) in Catalonia, Spain.
Findings
The results imply that the external common circumstances may have had a homogenising influence in consumer choices by decreasing the level of randomness of consumers’ selection. Consumers’ preferences for a Catalan origin were enhanced during the crisis, while price became the most important attribute.
Research limitations/implications
Ideally, the participants involved in both experiments would have been the same. Unfortunately, this was not possible to maintain and it is one of the limitations of this study. The authors are also aware that other non-controlled variables may have also played a role and the conclusions that are driven should be taken carefully.
Originality/value
This paper contributes to the literature of the discrete choice modelling using the recently developed Generalized Multinomial Logit Model. To the knowledge this is the first application in the literature of wine preferences to measure the impact of the contextual changes (economic and political) in Catalonia (Spain).
Details
Keywords
Pandaraiah Gouraram, Phanindra Goyari and Kirtti Ranjan Paltasingh
This paper examines the determinants of concurrent adoption of farm risk management strategies by rice growers in two different ecosystems of Telangana agriculture-irrigated and…
Abstract
Purpose
This paper examines the determinants of concurrent adoption of farm risk management strategies by rice growers in two different ecosystems of Telangana agriculture-irrigated and rainfed ecosystems.
Design/methodology/approach
The primary data have been collected from the rice growers in two different ecosystems, and after checking the variance inflation factor (VIF) for controlling multicollinearity, a multinomial logit model has been used to examine the determinants of concurrent adoption of coping strategies by rice growers.
Findings
The study finds that adopting one risk management strategy persuades farmers to embrace other strategies, reducing the risk in agriculture between the two ecosystems. Among the determinants, farmers' age, education, contact with extension services, irrigation sources, livestock income, total farm income, crop loss reasons, and crop insurance awareness significantly influence the adoption of various risk management measures. However, considerable heterogeneity is found among the driving forces across the rice ecosystems.
Research limitations/implications
The major policy implications that can be drawn from the analysis are increased access to information through government-funded extension services and the provision of alternative risk management technologies, such as drought-resistant or flood-resistant seeds, farmers' field schools and increased provision of crop insurance, farmer-friendly agriculture extension services, and farm investment support, are critical for assisting farmers managing risks. In addition, however, there should be ecosystem-specific policies to tackle the ecosystem heterogeneity.
Originality/value
This paper is very timely and entails some relevant policy implications for the development of Indian agriculture.
Details
Keywords
Johannes Möllmann, Marius Michels and Oliver Musshoff
The outstanding reform of the Common Agriculture Policy allows for changes regarding its most criticized component, the direct payment scheme. The purpose of this paper is to…
Abstract
Purpose
The outstanding reform of the Common Agriculture Policy allows for changes regarding its most criticized component, the direct payment scheme. The purpose of this paper is to investigate farmers’ acceptance of subsidized whole farm income insurance (WFI) and single-crop, multi-peril revenue insurance (RI) that are associated with a reduction of direct payments.
Design/methodology/approach
By applying a generalized multinomial logit model on data of a discrete choice experiment, German farmers’ preferences, expressed as their willingness to pay (WTP), for WFI and RI are revealed.
Findings
The results show a positive WTP for WFI and RI. The average farmer has a higher WTP for WFI than for RI. By increasing the coverage level, the negative influence of a reduction of direct payments on WTP for insurance can be compensated. Individual risk attitude and assessed importance of direct payments for the farm business show a statistically significant influence on the WTP.
Practical implications
The results suggest that, even if direct payments were abolished in order to subsidize WFI or RI, German farmers’ WTP for both insurance products would remain positive. However, to finally assess whether subsidizing insurance is the right means of providing public support, it is necessary to assess whether farmers’ WTP meets the costs for such an insurance scheme.
Originality/value
To the authors’ knowledge, this is the first study investigating German farmers’ WTP for WFI and RI using an experimental approach by explicitly considering the partial to complete replacement of direct payments by subsidized insurance.
Details
Keywords
Tiziana de-Magistris, Stefano Pascucci and Dimitrios Mitsopoulos
The purpose of this paper is to examine the role of the European Novel Food Regulation (ENFR) on consumers’ acceptance of and willingness to pay (WTP) for radical food…
Abstract
Purpose
The purpose of this paper is to examine the role of the European Novel Food Regulation (ENFR) on consumers’ acceptance of and willingness to pay (WTP) for radical food innovations. The research question is focussed on determining whether the ENFR is hampering the market potential of insect-based food products in the European Union (EU). The authors position this question within the domain of regulatory barriers related to food innovations.
Design/methodology/approach
Using a choice experiment, the authors assess the presence and relevance of these failures through the analysis of consumers’ acceptance and WTP for insect-based food products with different product attributes directly imposed by the ENFR. Namely, the authors assess the effect of the visualization of insects in the product, the use of logo, and nutritional information.
Findings
The results show that consumers prefer and are willing to pay a premium price for insect-based products with a nutritional health claim and logo, but they are not willing to pay for a product with a visualized insect.
Originality/value
This paper highlights the risk of regulatory failures for novel foods in the EU, such as insect-based food products due to the ENFR.
Details
Keywords
Nguyen H.D. My, Ellen J. Van Loo, Pieter Rutsaert, Tran Huu Tuan and Wim Verbeke
The purpose of this paper is to investigate consumers’ willingness to pay for quality rice attributes in urban areas in the South of Vietnam, including organic and integrated pest…
Abstract
Purpose
The purpose of this paper is to investigate consumers’ willingness to pay for quality rice attributes in urban areas in the South of Vietnam, including organic and integrated pest management (IPM) as sustainable production methods, and claim about health benefits and fair farmer prices.
Design/methodology/approach
Cross-sectional data were collected in 2015 using a survey including a choice experiment (CE) (n=500). Generalized mixed logit models were estimated.
Findings
Vietnamese consumers are willing to pay a premium of 82 percent for organic rice, and 45 percent for rice produced using IPM, compared to conventionally produced rice. They are also willing to pay a premium of 95 percent for rice claiming to be rich in vitamins and other nutrients, and 50 percent for rice that guarantees a fair price to rice farmers.
Research limitations/implications
A hypothetical CE was employed. Future research using revealed preference methods is suggested.
Originality/value
This study makes a significant contribution to the limited existing literature on consumers’ valuation of quality rice attributes in the context of developing countries such as Vietnam. The study shows that rice, that is, sustainably produced using organic or IPM methods provides a promising avenue for rice producers. This study highlights that there is an added value for rice with credence attributes in relation to sustainable production methods, health benefits, and fair farmer prices in a developing country.
Keqiang Wang, Hongmei Liu, Wuyang Hu and Linda Cox
Dolphin excursions have become increasingly popular worldwide. Many past studies assessing the value of dolphin excursions use choice-based methods such as the conjoint analysis…
Abstract
Purpose
Dolphin excursions have become increasingly popular worldwide. Many past studies assessing the value of dolphin excursions use choice-based methods such as the conjoint analysis. However, this method is often criticized as being hypothetical. The purpose of this paper is to describe a relatively low cost but effective approach to enhance understanding of consumer preference obtained by conjoint analysis. The method relies heavily on using internet-based survey tools.
Design/methodology/approach
Enabled by an online tool, individuals are asked to self-explicate their preferred alternatives using the same attributes as are found in the conjoint design. The difference between the self-constructed, preferred alternatives and those offered in conjoint experiment are incorporated into choice models. Unlike previous research where only rough estimates can be provided, the proposed method allows precise capture of respondents’ preferred alternative through the automated online survey design.
Findings
Results show that although the extra effort involved in data collection is small, the gain in model fit, choice interpretation, and the value (welfare) estimation is sizeable. Evidence indicates that consumers would be willing to pay up to $50 more for adventurous excursions and guarantees that they will interact with dolphins could worth up to $70 per trip. The approach presented in this paper can also serve as a method to test for preference consistency.
Originality/value
This study is the first using an online survey to assess values associated with dolphin excursion. It describes the benefit of involving online tools to enhance modeling and interpretation of consumer behavior. Applications of internet-based surveys on household consumer products are abundant (such as food and electronics) but this study offers a much less discussed application in environmental service.
Details
Keywords
Kjell Jansson, Harald Lang, Dan Mattsson and Reza Mortazavi