Revealing additional preference heterogeneity with an extended random parameter logit model: the case of extra virgin olive oil
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Publication date
2014-07-09ISSN
1695-971X
Abstract
Methods that account for preference heterogeneity have received a significant amount of attention in recent literature.Most of them have focused on preference heterogeneity around the mean of the random parameters, which has been specified as a function of socio-demographic characteristics. This paper aims at analyzing consumers’ preferences towards extra-virgin olive oil in Catalonia using a methodological framework with two novelties over past studies: 1) it accounts for both preference heterogeneity around the mean and the variance; and 2) it considers both sociodemographic characteristics of consumers as well as their attitudinal factors. Estimated coefficients and moments of
willingness to pay (WTP) distributions are compared with those obtained from alternative Random Parameter Logit (RPL) models. Results suggest that the proposed framework increases the goodness-of-fit and provides more useful insights for policy analysis. The most important attributes affecting consumers’ preferences towards extra virgin olive oil are the price and the product’s origin. The consumers perceive the organic olive oil attribute negatively, as they think that it is not worth paying a premium for a product that is healthy in nature.
Document Type
Article
Document version
Published version
Language
English
Subject (CDU)
64 - Home economics. Domestic science. Housekeeping
663/664 - Food and nutrition. Enology. Oils. Fat
Pages
15
Publisher
Instituto Nacional de Investigación y Tecnología Agraria y Alimentaria
Is part of
Spanish Journal of Agricultural Research
Citation
Yangui, Ahmed, Montserrat Costa-Font, and Jose M. Gil. 2014. "Revealing Additional Preference Heterogeneity With An Extended Random Parameter Logit Model: The Case Of Extra Virgin Olive Oil". Spanish Journal Of Agricultural Research 12 (3): 553. doi:10.5424/sjar/2014123-5501.
Program
Economia Agroalimentària
This item appears in the following Collection(s)
- ARTICLES CIENTÍFICS [2646]
Except where otherwise noted, this item's license is described as http://creativecommons.org/licenses/by/4.0/