ERA

Download the full-sized PDF of Using Discrete Choice Models to Estimate Non-market Values: Effects of Choice Set Formation and Social NetworksDownload the full-sized PDF

Analytics

Share

Permanent link (DOI): https://doi.org/10.7939/R38P5VH06

Download

Export to: EndNote  |  Zotero  |  Mendeley

Communities

This file is in the following communities:

Graduate Studies and Research, Faculty of

Collections

This file is in the following collections:

Theses and Dissertations

Using Discrete Choice Models to Estimate Non-market Values: Effects of Choice Set Formation and Social Networks Open Access

Descriptions

Other title
Subject/Keyword
choice set formation
discrete choice models
social networks
non-market valuation
Type of item
Thesis
Degree grantor
University of Alberta
Author or creator
Chen, Minjie
Supervisor and department
Wichmann, Bruno (Department of Resource Economics and Environmental Sociology)
Examining committee member and department
Adamowicz, Vic (Department of Resource Economics and Environmental Sociology)
Rude, James (Department of Resource Economics and Environmental Sociology)
Wichmann, Bruno (Department of Resource Economics and Environmental Sociology)
Department
Department of Resource Economics and Environmental Sociology
Specialization
Agricultural and Resource Economics
Date accepted
2014-07-10T14:48:11Z
Graduation date
2014-11
Degree
Master of Science
Degree level
Master's
Abstract
Discrete choice models are often used to estimate non-market values. In standard models, individuals make choices considering all possible alternatives. However, in reality, the set of alternatives individuals consider may differ. Moreover, these choice sets may be influenced by the individual's social networks. For instance, Romeo was going to go to the beach; however after talking to Juliet he is also considering the mountains. Recent research has demonstrated that ignoring the choice set formation (CSF) process leads to biased estimates of non-market values. This paper develops a discrete choice model in which the choice set faced by a decision-maker is influenced by her social network. In the model, a network parameter denominated by social propensity determines the weight a decision-maker places on her network when determining what alternatives to consider. We use Monte-Carlo experiments to investigate the effects of ignoring social networks when modeling CSF. We find that when social propensity is relatively low, CSF models that ignore social networks do not lead to significant bias in welfare estimates. However, as social propensity increases and reaches a certain threshold, welfare estimates that ignore networks are significantly biased and estimates of welfare change are significantly higher than the true welfare change.
Language
English
DOI
doi:10.7939/R38P5VH06
Rights
Permission is hereby granted to the University of Alberta Libraries to reproduce single copies of this thesis and to lend or sell such copies for private, scholarly or scientific research purposes only. Where the thesis is converted to, or otherwise made available in digital form, the University of Alberta will advise potential users of the thesis of these terms. The author reserves all other publication and other rights in association with the copyright in the thesis and, except as herein before provided, neither the thesis nor any substantial portion thereof may be printed or otherwise reproduced in any material form whatsoever without the author's prior written permission.
Citation for previous publication

File Details

Date Uploaded
Date Modified
2015-01-08T08:01:14.055+00:00
Audit Status
Audits have not yet been run on this file.
Characterization
File format: pdf (PDF/A)
Mime type: application/pdf
File size: 2842022
Last modified: 2015:10:18 01:37:37-06:00
Filename: Chen_Minjie_201407_MSc.pdf
Original checksum: b95bd34d85d52ad7a5ab5945be092162
Well formed: true
Valid: true
File title: 20140702newThesis_Cover
File author: gracet
Page count: 85
Activity of users you follow
User Activity Date