Showing papers by "Marco Boeri published in 2012"
TL;DR: In this paper, the authors introduce the discrete choice model-paradigm of Random Regret Minimization (RRM) to the field of environmental and resource economics, and compare RRM-based models with RUM-based ones in terms of parameter estimates, goodness of fit, elasticities and consequential policy implications.
Abstract: This paper introduces the discrete choice model-paradigm of Random Regret Minimization (RRM) to the field of environmental and resource economics. The RRM-approach has been very recently developed in the context of travel demand modelling and presents a tractable, regret-based alternative to the dominant choice-modelling paradigm based on Random Utility Maximization-theory (RUM-theory). We highlight how RRM-based models provide closed form, logit-type formulations for choice probabilities that allow for capturing semi-compensatory behaviour and choice set-composition effects while being equally parsimonious as their utilitarian counterparts. Using data from a Stated Choice-experiment aimed at identifying valuations of characteristics of nature parks, we compare RRM-based models and RUM-based models in terms of parameter estimates, goodness of fit, elasticities and consequential policy implications.
80 citations
TL;DR: In this paper, the authors compare the regret minimization and utility maximization models for determining recreational choice in the Republic of Ireland, using data from a travel cost study exploring factors that influence kayakers' site-choice decisions.
Abstract: This paper compares the Random Regret Minimization and the Random Utility Maximization models for determining recreational choice. The Random Regret approach is based on the idea that, when choosing, individuals aim to minimize their regret – regret being defined as what one experiences when a non-chosen alternative in a choice set performs better than a chosen one in relation to one or more attributes. The Random Regret paradigm, recently developed in transport economics, presents a tractable, regret-based alternative to the dominant choice paradigm based on Random Utility. Using data from a travel cost study exploring factors that influence kayakers’ site-choice decisions in the Republic of Ireland, we estimate both the traditional Random Utility multinomial logit model (RU-MNL) and the Random Regret multinomial logit model (RR-MNL) to gain more insights into site choice decisions. We further explore whether choices are driven by a utility maximization or a regret minimization paradigm by running a bina...
40 citations
TL;DR: In this article, two alternative approaches to accommodate scale heterogeneity (also referred to as heteroskedasticity) in latent class models were developed and compared, respectively associating the heterogeneity in scale factor with respondent's characteristics or deriving it probabilistically (i.e. unobserved scale heterogeneity).
Abstract: This paper develops and compares two alternative approaches to accommodate scale heterogeneity (also referred to as heteroskedasticity) in latent class models. Our modelling approach compares two different representations of heteroskedasticity, respectively associating the heterogeneity in scale factor with respondent's characteristics (i.e. observed scale heterogeneity) or deriving it probabilistically (i.e. unobserved scale heterogeneity). The results reveal a number of benefits associated with this type of approach, particularly when heterosckedasticity can be linked to observed characteristics of the respondent. Our data comes from a discrete choice experiment eliciting recreational users preferences for farmland walking trails in Ireland
1 citations