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mylaruth

Community Trekker

Joined:

Jul 14, 2015

What is theoretical/econometric base of the "willingness to pay" option in choice analysis?

Please help me with my thesis through directing me to the specific methodology applied to generating the willingness to pay. What happens after conditional logit analysis?

3 REPLIES
melinda_thielba

Staff (Retired)

Joined:

May 27, 2014

Re: What is theoretical/econometric base of the "willingness to pay" option in choice analysis?

Hi, mylaruth!

This book:

Stated Choice Methods

Analysis and Applications

AUTHORS:Jordan J. Louviere, University of South AustraliaDavid A. Hensher, University of SydneyJoffre D. Swait, University of FloridaDATE PUBLISHED: October 2000

...has some really nice explanations and examples on Willingness to Pay, as well as some good references. You might also check out:

Freeman (1993) The Measurement of Environmental and Resource Values, which delves pretty deeply in how to measure value in a market.

Good luck!

Melinda

mylaruth

Community Trekker

Joined:

Jul 14, 2015

Re: What is theoretical/econometric base of the "willingness to pay" option in choice analysis?

Thank you so much, you are a great help! By the way, would you happen to know what diagnostic tests that can be used to know if the model JMP used is the best model? For example, for time series data, BIC and AIC values dictate the model's goodness of fit, does JMP have the same indicator for choice data?

melinda_thielba

Staff (Retired)

Joined:

May 27, 2014

Re: What is theoretical/econometric base of the "willingness to pay" option in choice analysis?

The Choice model documentation is here: Choice Models

You can use it to find out which statistics are available in the platform.