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Article: Data on agricultural economics described by R. Scarpa et al.
- Article from:
- Agriculture Week
- Article date:
- November 27, 2008
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"We compare two approaches for estimating the distribution of consumers' willingness to pay (WTP) in discrete choice models. The usual procedure is to estimate the distribution of the utility coefficients and then derive the distribution of WTP, which is the ratio of coefficients," scientists writing in the American Journal of Agricultural Economics report.
"The alternative is to estimate the distribution of WTP directly. We apply both approaches to data on site choice in the Alps," wrote R. Scarpa and colleagues.
The researchers concluded: "We find that the alternative approach fits the data better, reduces the incidence of exceedingly large estimated ...