The two primary approaches to estimate marginal willingness-to-pay (MWTP) are hedonic (Rosen, 1974) and discrete choice models (McFadden, 1974). This paper provides a tractable framework to investigate the relationship between MWTP in these models. By deriving the hedonic price gradient implicitly from the share function in the discrete choice model, I present an analytical mapping between the ...

In this paper we derive locally D-optimal designs for discrete choice experiments based on multinomial probit models. These models include several explanatory variables as well a quantitative one. The commonly used logit model assumes independent utilities different options. Thus, optimal such may comprise sets, e.g., consisting of alternatives which are identical in all attributes but the vari...

Two process tracing studies investigated how the information acquisition process in a binary choice task is influenced by the overall level of attractiveness of alternatives, by the magnitude of differences in attractiveness of alternatives, and by the dominance of one alternative. All three factors influenced the subjects’ information selection process regarding the multiattribute choice alter...

5 Social networks and social capital are generally considered to be important 6 variables in explaining the diffusion of behavior. However, it is contested 7 whether the actual social connections, cultural discourse, or individual 8 preferences determine this diffusion. Using discrete choice analysis applied 9 to longitudinal Twitter data, we are able to distinguish between social 10 network in...

This paper provides a few variants of a simple estimator for binary choice models with endogenous or mismeasured regressors, or with heteroskedastic errors, or with panel fixed effects. Unlike control function methods, which are generally only valid when endogenous regressors are continuous, the estimators proposed here can be used with limited, censored, continuous, or discrete endogenous regr...

We evaluate factor analysis and multi-dimensional scaling (MDS) as tools for the analysis of voter decisions over a series of dichotomous choices. We simulate binary voting data with a known form and illustrate that standard factor analyses of these types of data yield additional artifactual dimensions. This effect may be exacerbated by the choice of inter-voter measures of similarity used as i...

Commuters can complete their “home-work-home” trips by three options: subway-only mode, auto-only mode, and park-and-ride mode on a bottleneck-constrained corridor. The purpose of this paper is to enhance the insights into pricing mechanism for subway and parking and corresponding mode choice behavior on the corridor with elastic demand. A nested logit-based stochastic user equilibrium model is...

Recent studies have cast doubt on the dominant role of social contagion in new product diffusion. We critically re-assess what is considered the best evidence of social contagion in the diffusion literature: the Medical Innovation study by Coleman, Katz and Menzel(1966) on the diffusion of the antibiotic tetracycline in the mid 1950s. A descriptive analysis of the tetracycline market indicates ...

5.1. The problem 5.2. The test statistics 5.3. The inequality 5.4. A numerical example 5.5. Instrumental variables 6. Asymptotic equivalence and optimality of the test statistics 7. The Lagrange Multiplier test as a diagnostic 8. Lagrange Multiplier tests for non-spherical disturbances 8.1. Testing for heteroscedasticity 8.2. Serial correlation 9. Testing the specification of the mean in severa...