Modeling disinterest and dislike: A bounded Bayesian mixed logit model of the UK market for GM food

Dan Rigby, Mike Burton

Research output: Contribution to journalArticlepeer-review

Abstract

Mixed logit models represent a powerful discrete choice analytical model but require assumptions about the functional form of the parameter distributions. The use of unbounded distributions, such as the normal distribution, may be regarded as unsuitable where theory indicates that all are negatively affected by increases in an attribute, such as price. Bounded distributions such as the triangular and log-normal are unable to model the case where a section of the population is indifferent towards an attribute, while the remainder are negatively disposed toward it. Train and Sonnier's bounded mixed logit model accommodates these features and is employed in this paper. A censored normal and Johnson's SB distribution are used to model preferences in the UK for food attributes, including price and GM technology. Bi-modal distributions are identified regarding GM food: some are unlikely to ever consume it, some are close to indifference and willing to consume at relatively small discounts while the remainder are fairly unresponsive to further price reductions. © Springer 2006.
Original languageEnglish
Pages (from-to)485-509
Number of pages24
JournalEnvironmental and Resource Economics
Volume33
Issue number4
DOIs
Publication statusPublished - Apr 2006

Keywords

  • Bayesian
  • Bounded mixed logit
  • Choice modeling
  • Food safety
  • GMOs

Fingerprint

Dive into the research topics of 'Modeling disinterest and dislike: A bounded Bayesian mixed logit model of the UK market for GM food'. Together they form a unique fingerprint.

Cite this