Preferences heterogeneity and choice experiments: A random parameters logit applied to the demand of walnuts

Authors

  • Dena Mª Camarena-Gómez Centro de Investigación y Tecnología Agroalimentaria (Gobierno de Aragón)
  • Ana I. Sanjuán-López Centro de Investigación y Tecnología Agroalimentaria (Gobierno de Aragón)

DOI:

https://doi.org/10.7201/earn.2004.08.06

Keywords:

mixed or random parameters logit, stated preferences, choice experiment, heterogeneous preferences, walnuts

Abstract

Consumers’ stated preferences towards walnuts are studied by means of a choice experiment, with a double objective: first, to identify the main attributes searched by consumer at purchase and second, to analyse the chances for the introduction into the Spanish market of the Pecan variety. From this study, commercial guidelines may be derived, that helps distribution and import companies to commercialise this nut. A mixed or random parameters logit is estimated which relaxes the IIA property (independence of irrelevant alternatives) present in the logit model with fixed parameters. In a mixed logit, coefficients of each attribute/level vary randomly across consumers, reflecting the heterogeneity of individuals’ preferences. This model also allows estimate efficiently the parameters when each individual chooses several times, as in the present study.

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Author Biographies

Dena Mª Camarena-Gómez, Centro de Investigación y Tecnología Agroalimentaria (Gobierno de Aragón)

Unidad de Economía Agraria y Recursos Naturales. Centro de Investigación y Tecnología Agroalimentaria de Aragón (CITA).

Ana I. Sanjuán-López, Centro de Investigación y Tecnología Agroalimentaria (Gobierno de Aragón)

Unidad de Economía Agraria y Recursos Naturales. Centro de Investigación y Tecnología Agroalimentaria de Aragón (CITA).

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Published

2011-10-21

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