On the use of flexible mixing distributions in WTP space: an induced value choice experiment Academic Article

abstract

• 2018 Australasian Agricultural and Resource Economics Society Inc. In this study, we use data from an induced value choice experiment to compare estimates from mixed logit models in willingness to pay (WTP) space using different parameter distributional assumptions. Specifically, we test differences in WTP estimates when using flexible parameter mixing distributions (i.e. Legendre polynomials, step functions and splines) and conventional parameter distributions (normal and lognormal). Similar WTP estimates are obtained. However, we observe that WTP estimates are statistically different from the induced value when conventional distributions are assumed, but they are not when more flexible distributions are assumed. This suggests that flexible distributions can provide more reliable WTP estimates.

authors

• Nayga, Rodolfo
• Palma, Marco

published proceedings

• AUSTRALIAN JOURNAL OF AGRICULTURAL AND RESOURCE ECONOMICS

author list (cited authors)

• Bazzani, C., Palma, M. A., & Nayga, R.

citation count

• 16

publication date

• April 2018

publisher

• Wiley  Publisher

keywords

• Flexible Mixing Distribution
• Induced Value Choice Experiment
• Normal Distribution
• Wtp Space

Digital Object Identifier (DOI)

• 10.1111/1467-8489.12246

start page

• 185

end page

• 198

volume

• 62

issue

• 2

URL

• http://dx.doi.org/10.1111/1467-8489.12246