The choice of the mixing density in random parameter logit models remains a complex issue. Freque... more The choice of the mixing density in random parameter logit models remains a complex issue. Frequently, trade-offs need to be made between ease of estimation, shape flexibility and behavioural relevance. We contrast a set of alternative distributions, including the asymmetric triangular, in a choice experiment on flood risk exposure and estimate our models in a Bayesian WTP-space framework. Results show that the triangular distribution can be applied, but is outperformed by the lognormal distribution in terms of model fit. The Gibbs Sampler reveals that simple distributional forms are not likely to be consistent with the underlying distribution of preferences.
ABSTRACT In this paper we extend the behavioural scope of discrete choice models for leisure acti... more ABSTRACT In this paper we extend the behavioural scope of discrete choice models for leisure activity-travel choices. More specifically, we investigate to what extent choices for leisure activities and related travels are driven by the satisfaction of needs. In addition to conventional attributes (such as activity costs), our regret based discrete choice model incorporates latent variables representing the anticipated level of individual needs-satisfaction by a particular leisure activity. The latent variables are calibrated with the help of subjective indicators of needs-satisfaction associated with the leisure activities. Results show that needs-satisfaction allows us to decompose a substantial share of the unobserved heterogeneity in leisure activity-travel decisions across respondents. Identifying the structural drivers of anticipated needs-satisfaction also enables a better prediction of leisure activity choice.
Australian Journal of Agricultural and Resource Economics, 2015
ABSTRACT This study tests the transferability of the nonmarket values of water conservation for d... more ABSTRACT This study tests the transferability of the nonmarket values of water conservation for domestic and environmental purposes across three south European countries and Australia applying a common choice experiment design. Different approaches are followed to test the transferability of the estimated values, aiming to minimise transfer errors for use in policy analysis, comparing both single- and multicountry transfers, with and without socio-economic adjustments. Within Europe, significant differences are found between implicit prices for environmental water use, but not for domestic water use. In the Australian case study, alleviating restrictions on domestic water use has no significant value. Pooling the three European samples improves the transferability of the environmental flow values between Europe and Australia. Results show that a reduction in transfer error is achieved when controlling for unobserved and observed preference heterogeneity in the single- and multicountry transfers, providing additional support for the superiority of socio-economic adjustment procedures in value transfer.
Journal of Environmental Economics and Management, 2012
This paper studies patenting decisions by firms in relation to the negotiation and signing of the... more This paper studies patenting decisions by firms in relation to the negotiation and signing of the Helsinki and Oslo protocol as part of the Convention on Long-Range Transboundary Air Pollution. We use a uniquely constructed patent data set on SO2 abatement technologies filed in 15 signatory and non-signatory countries in the period 1970–1997. The data distinguish between so-called ‘mother’ patents,
ABSTRACT This paper introduces to the field of marketing a regret-based discrete choice model for... more ABSTRACT This paper introduces to the field of marketing a regret-based discrete choice model for the analysis of multi-attribute consumer choices from multinomial choice sets. This random regret minimization (RRM) model, which has recently been introduced in the field of transport, forms a regret-based counterpart of the canonical random utility maximization (RUM) paradigm. This paper assesses empirical results based on 43 comparisons reported in peer-reviewed journal articles and book chapters, with the aim of finding out to what extent, when, and how RRM can form a viable addition to the consumer choice modeler's toolkit. The paper shows that RRM and hybrid RRM–RUM models outperform RUM counterparts in a majority of cases, in terms of model fit and predictive ability. Although differences in performance are quite small, the two paradigms often result in markedly different managerial implications due to considerable differences in, for example, market share forecasts.
Climate change may cause most harm to countries that contribute least to greenhouse gas emissions... more Climate change may cause most harm to countries that contribute least to greenhouse gas emissions. This paper identifies deontology, solidarity and consequentialism as the principles that can serve as a basis for a fair international burden sharing scheme of adaptation costs. We translate these principles into criteria that can be applied in assigning contributions of individual countries, namely historical responsibility,
The choice of the mixing density in random parameter logit models remains a complex issue. Freque... more The choice of the mixing density in random parameter logit models remains a complex issue. Frequently, trade-offs need to be made between ease of estimation, shape flexibility and behavioural relevance. We contrast a set of alternative distributions, including the asymmetric triangular, in a choice experiment on flood risk exposure and estimate our models in a Bayesian WTP-space framework. Results show that the triangular distribution can be applied, but is outperformed by the lognormal distribution in terms of model fit. The Gibbs Sampler reveals that simple distributional forms are not likely to be consistent with the underlying distribution of preferences.
ABSTRACT In this paper we extend the behavioural scope of discrete choice models for leisure acti... more ABSTRACT In this paper we extend the behavioural scope of discrete choice models for leisure activity-travel choices. More specifically, we investigate to what extent choices for leisure activities and related travels are driven by the satisfaction of needs. In addition to conventional attributes (such as activity costs), our regret based discrete choice model incorporates latent variables representing the anticipated level of individual needs-satisfaction by a particular leisure activity. The latent variables are calibrated with the help of subjective indicators of needs-satisfaction associated with the leisure activities. Results show that needs-satisfaction allows us to decompose a substantial share of the unobserved heterogeneity in leisure activity-travel decisions across respondents. Identifying the structural drivers of anticipated needs-satisfaction also enables a better prediction of leisure activity choice.
Australian Journal of Agricultural and Resource Economics, 2015
ABSTRACT This study tests the transferability of the nonmarket values of water conservation for d... more ABSTRACT This study tests the transferability of the nonmarket values of water conservation for domestic and environmental purposes across three south European countries and Australia applying a common choice experiment design. Different approaches are followed to test the transferability of the estimated values, aiming to minimise transfer errors for use in policy analysis, comparing both single- and multicountry transfers, with and without socio-economic adjustments. Within Europe, significant differences are found between implicit prices for environmental water use, but not for domestic water use. In the Australian case study, alleviating restrictions on domestic water use has no significant value. Pooling the three European samples improves the transferability of the environmental flow values between Europe and Australia. Results show that a reduction in transfer error is achieved when controlling for unobserved and observed preference heterogeneity in the single- and multicountry transfers, providing additional support for the superiority of socio-economic adjustment procedures in value transfer.
Journal of Environmental Economics and Management, 2012
This paper studies patenting decisions by firms in relation to the negotiation and signing of the... more This paper studies patenting decisions by firms in relation to the negotiation and signing of the Helsinki and Oslo protocol as part of the Convention on Long-Range Transboundary Air Pollution. We use a uniquely constructed patent data set on SO2 abatement technologies filed in 15 signatory and non-signatory countries in the period 1970–1997. The data distinguish between so-called ‘mother’ patents,
ABSTRACT This paper introduces to the field of marketing a regret-based discrete choice model for... more ABSTRACT This paper introduces to the field of marketing a regret-based discrete choice model for the analysis of multi-attribute consumer choices from multinomial choice sets. This random regret minimization (RRM) model, which has recently been introduced in the field of transport, forms a regret-based counterpart of the canonical random utility maximization (RUM) paradigm. This paper assesses empirical results based on 43 comparisons reported in peer-reviewed journal articles and book chapters, with the aim of finding out to what extent, when, and how RRM can form a viable addition to the consumer choice modeler's toolkit. The paper shows that RRM and hybrid RRM–RUM models outperform RUM counterparts in a majority of cases, in terms of model fit and predictive ability. Although differences in performance are quite small, the two paradigms often result in markedly different managerial implications due to considerable differences in, for example, market share forecasts.
Climate change may cause most harm to countries that contribute least to greenhouse gas emissions... more Climate change may cause most harm to countries that contribute least to greenhouse gas emissions. This paper identifies deontology, solidarity and consequentialism as the principles that can serve as a basis for a fair international burden sharing scheme of adaptation costs. We translate these principles into criteria that can be applied in assigning contributions of individual countries, namely historical responsibility,
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Papers by Thijs Dekker