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A Censored Random Coefficients Model for the Detection of Zero Willingness to Pay

Reichl, Johannes and Frühwirth-Schnatter, Sylvia (2011) A Censored Random Coefficients Model for the Detection of Zero Willingness to Pay. Quantitative Marketing and Economics, 10 (2). pp. 259-281. ISSN 1573-711X

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Abstract

In this paper we address the problem of negative estimates of willingness to pay. We find that there exist a number of goods and services, especially in the fields of marketing and environmental valuation, for which only zero or positive WTP is meaningful. For the valuation of these goods an econometric model for the analysis of repeated dichotomous choice data is proposed. Our model restricts the domain of the estimates of WTP to strictly positive values, while also allowing for the detection of zero WTP. The model is tested on a simulated and a real data set.

Item Type: Article
Additional Information: The original publication is available at www.springerlink.com. To see the final version of this paper please visit the publisher's website. Access to the published version requires a subscription.
Keywords: Willingness to Pay / Censored Random Coefficients / Bayesian Inference
Classification Codes: JEL C11, Q51
Divisions: Departments > Finance, Accounting and Statistics > Statistics and Mathematics
Version of the Document: Accepted for Publication
Variance from Published Version: Minor
Depositing User: ePub Administrator
Date Deposited: 03 Dec 2012 11:23
Last Modified: 14 Nov 2017 16:41
Related URLs:
FIDES Link: https://bach.wu.ac.at/d/research/results/61051/
URI: http://epub.wu.ac.at/id/eprint/3707

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