Arbeitspapier
Biases in Willingness-To-Pay Measures from Multinomial Logit Estimates due to Unobserved Heterogeneity
It is a common finding in empirical discrete choice studies that the estimated mean relative values of the coefficients (i.e. WTP's) from multinomial logit (MNL) estimations differ from those calculated using mixed logit estimations, where the mixed logit has the better statistical fit. However, it is less clear under exactly what circumstances such differences arise, whether they are important, and if they can be seen as biases in the WTP estimates from MNL. We use datasets created by Monte Carlo simulation to test, in a controlled environment, the effects of the different possible sources of bias on the accuracy of WTP's estimated by MNL. Consistent with earlier research we find that random unobserved heterogeneity in the marginal utilities does not in itself biases the MNL estimates. Furthermore, whether or not the unobserved heterogeneity is symmetrically shaped also does not affect the accuracy of the WTP estimates of MNL. However, we find that if two heterogeneous marginal utilities are correlated then the WTP's from MNL may be biased. If the correlation between the marginal utilities is negative, then the bias in the MNL estimate is negative, whereas if the correlation is positive the bias is positive.
- Sprache
-
Englisch
- Erschienen in
-
Series: Tinbergen Institute Discussion Paper ; No. 10-014/3
- Klassifikation
-
Wirtschaft
Estimation: General
Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
- Thema
-
Discrete Choice
Biases in WTP's
Multinomial Logit
Correlated Heterogeneous Marginal Utilities
Diskrete Entscheidung
Willingness to pay
Logit-Modell
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
van den Berg, Vincent
Kroes, Eric
Verhoef, Erik T.
- Ereignis
-
Veröffentlichung
- (wer)
-
Tinbergen Institute
- (wo)
-
Amsterdam and Rotterdam
- (wann)
-
2010
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- van den Berg, Vincent
- Kroes, Eric
- Verhoef, Erik T.
- Tinbergen Institute
Entstanden
- 2010
Ähnliche Objekte (12)
Estimation of Multinomial Logit Models with Unobserved Heterogeneity Using Maximum Simulated Likelihood
Estimation of Multinomial Logit Models with Unobserved Heterogeneity Using Maximum Simulated Likelihood
Testing the Multinomial Logit Model
Testing the multinomial logit model
Multinomial Logit Models for the Austrian Labor Market
Using penalized likelihood to select parameters in a random coefficients multinomial logit model
Using penalized likelihood to select parameters in a random coefficients multinomial logit model
Children’s Independent Mobility to School in Seven European Countries: A Multinomial Logit Model
Semiparametric multinomial logit models for analysing consumer choice behaviour
A Bayesian mixed logit-probit model for multinomial choice
A User's Guide for Two Programs to Estimate and Analyze the Multinomial Logit Allocation Model
A multinomial logit model of college stopout and dropout behavior
Estimation of Multinomial Logit Models with Unobserved Heterogeneity Using Maximum Simulated Likelihood
Estimation of Multinomial Logit Models with Unobserved Heterogeneity Using Maximum Simulated Likelihood
Testing the Multinomial Logit Model
Testing the multinomial logit model
Multinomial Logit Models for the Austrian Labor Market
Using penalized likelihood to select parameters in a random coefficients multinomial logit model
Using penalized likelihood to select parameters in a random coefficients multinomial logit model
Children’s Independent Mobility to School in Seven European Countries: A Multinomial Logit Model
Semiparametric multinomial logit models for analysing consumer choice behaviour
A Bayesian mixed logit-probit model for multinomial choice
A User's Guide for Two Programs to Estimate and Analyze the Multinomial Logit Allocation Model
A multinomial logit model of college stopout and dropout behavior
Estimation of Multinomial Logit Models with Unobserved Heterogeneity Using Maximum Simulated Likelihood
Estimation of Multinomial Logit Models with Unobserved Heterogeneity Using Maximum Simulated Likelihood
Testing the Multinomial Logit Model
Testing the multinomial logit model
Multinomial Logit Models for the Austrian Labor Market
Using penalized likelihood to select parameters in a random coefficients multinomial logit model
Using penalized likelihood to select parameters in a random coefficients multinomial logit model
Children’s Independent Mobility to School in Seven European Countries: A Multinomial Logit Model
Semiparametric multinomial logit models for analysing consumer choice behaviour
A Bayesian mixed logit-probit model for multinomial choice
A User's Guide for Two Programs to Estimate and Analyze the Multinomial Logit Allocation Model