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 …

Willingness to pay measures derived from discrete choice model not only have a clear
economic interpretation, but also are a relevant input for welfare analysis, developing …

We investigate direct and indirect specification of the distribution of consumer willingness-to-
pay (WTP) for changes in product attributes in a choice setting. Typically, choice models …

In models with unobserved taste heterogeneity, distributional assumptions can be placed in
two ways:(1) by specifying the distribution of coefficients in the utility function and deriving …

Welfare evaluation of a policy that alters the resource allocation can often be cast as the
problem of calculating mean Willingness to Pay (WTP) in a population of consumers with a …

This paper investigates the role of the outside good utility function on admissible substitution
patterns in multiple discrete/continuous demand models. We first present a set of novel …

The idea that decision makers have to, and are willing to, make tradeoffs between the
attributes of choice alternatives lies at the heart of microeconomic consumer theory (eg …

The two primary approaches to estimate marginal willingness-to-pay (MWTP) for
differentiated goods are hedonics (Rosen, 1974) and discrete choice models (McFadden …

Given data on choices made by consumers for different assortments, a key challenge is to
develop parsimonious models that describe and predict consumer choice behavior. One …

Random utility maximisation (RUM) models are one of the cornerstones of discrete choice
modelling. However, specifying the utility function of RUM models is not straightforward and …