作者
Ricardo Alvarez Daziano
发表日期
2013/5/25
研讨会论文
International Choice Modelling Conference 2013
简介
Whereas the structural taste parameters of a random utility maximization model lack a straightforward interpretation, parameter ratios of a linear utility can be interpreted as marginal rates of substitution. In particular, a consumer’s willingness-to-pay for qualitative improvements can be derived from the ratio of the marginal utility of a specific hedonic attribute and the marginal utility of income. Willingness-to-pay has not only a clear economic interpretation, but also is a relevant input for welfare analysis, developing marketing strategies, and policy-making. Because inference on parameter ratios is associated with statistical problems, transforming the original utility maximization problem into a consumer surplus maximization seems desirable. Recent literature uses a reparameterization of the model parameters from the original preference space to the willingness-to-pay space. However, I propose to use an alternative normalization of scale to obtain direct inference on consumers’ monetary valuation of attributes. To analyze the willingness-to-pay estimates that are derived from the normalization of the marginal utility, I use microdata on adoption of energy-efficient durable goods.
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