The cross-price effect on willingness-to-pay estimates in open-ended contingent valuation

Previous literature has shown that potential buyers use a reference price or product to form their opinion about the value of a new product. Therefore, the pricing decision is an interactive process. We investigate the two generalizations of the cross-price effect (the neighborhood price effect and the asymmetric price effect) on consumer willingness-to-pay (WTP) for multiple similar products in an open-ended contingent valuation context. Results show that the cross-price effect on WTP is prominent, with the neighborhood price effect holding in contingent valuation. No conclusions are reached about the asymmetric price effect.     

The price effects of greening vacant lots: How neighborhood attributes matter

We identify the effects of greening vacant lots on nearby housing prices and show how neighborhood attributes matter to these outcomes. Using data from a longstanding program in Philadelphia, we find that prices for houses within 1,000 feet of a greened vacant lot rise by about 4%, consistent with the literature, with the effect size increasing over time. Using the extensive data available in Philadelphia, we show how these effects vary by the attributes of the neighborhood in which they occur, with larger effects in areas with a high share of vacant land and higher-than-average median household incomes, with peak responses estimated at 19% and 15%, respectively. We demonstrate the importance of sample selection bias adjustment for identification of the effect of vacant lot greening.     

Black and White Preferences for Neighborhood Racial Composition

The research investigates the existence, nature and magnitude of the preferences of races to voluntarily "self-segregate" into particular areas of urban housing markets. Housing market theory is employed to develop a model showing how housing price variations within a group can provide unambiguous evidence of their preferences for neighborhood racial composition. The model is operationalized in a multiple regression specification wherein the variations in a given racial group's housing prices become a function of the dwelling's attributes and the attributes of the neighborhood (including quality, status, stability and density) as well as housing submarket location and racial composition. The size and statistical significance of the coefficient of the last attribute provides the evidence sought.
The regressions are estimated using two micro-household data bases from St. Louis (1967) and Wooster, Ohio (1975), and results compared. Results show that St. Louis black owners had an aversion to larger black proportions within black submarket neighborhoods, with .7% lower housing prices associated with a 1% higher percentage black. Racial effects for black owners in preponderantly white areas and for black renters in all areas were statistically insignificant. St. Louis whites of both tenures did not demonstrate aversion to neighborhoods with higher percentages of blacks as long as they remained 25% black or less. In areas 25–50% black, however, white prices were 1.5% lower for owners and 3.2% lower for renters per 1% higher proportion black. Such associations continued in majority-black areas, although the magnitudes of the price effect became progressively smaller. Wooster whites showed an aversion to living in neighborhoods having even a few percent of blacks, with prices 11% lower for owners and 7% lower for renters in such areas compared to all-white ones.     

Can Urban Indicators Predict Home Price Appreciation? Implications for Redlining Research

Economists commonly control for neighborhood indicators, such as median income, in underwriting models that test for redlining. Many such indicators are highly correlated with neighborhood racial composition and therefore have the capacity to "explain away" the role of race in lending decisions. This paper argues that indicators should be included in models of underwriting only if they affect future home prices, and hence the value of the default option, in a consistent fashion. Testing the effect of nine census variables, taken from two recent redlining papers, on California tract appreciation from 1986 to 1994, a consistent relationship between indicators and home price is not found.     

Risk Segmentation of American Homes: Evidence from Denver

This article empirically examines the segmentation of house price risk across 99 ZIP‐code‐delineated neighborhoods in metropolitan Denver. The house price risk in each neighborhood is measured with the temporal variation of quarterly appreciation rates of the neighborhood house price index over the 2002–2007 period. Cross‐sectional regressions of neighborhood house price risk on the median household income and the percentage of population in poverty from the 2000 census data for the same neighborhoods provide strong evidence that the house price risk is significantly higher in low‐income/poor neighborhoods. Subperiod analyses further indicate that the risk segmentation exists in both a booming period (pre 2005:2) and a busting period (post 2005:3). The results indicate that homeownership can be a much riskier investment for low‐income/poor households.     

Which types of multi-stage marketing increase direct customers' willingness-to-pay? Evidence from a scenario-based experiment in a B2B setting

The present study investigates empirically which types of multi-stage marketing by a business-to-business supplier affect its direct customers' willingness-to-pay. We conceptually develop comprehensive and selective multi-stage marketing as well as multi-stage awareness as distinct types of this concept. Their properties lead to differentiated hypotheses concerning their effects on direct customers' relationship value perceptions and perceived price importance which in turn influence willingness-to-pay. The paper also demonstrates how the direct customers' power position toward their own customers affects the effectiveness of a supplier's multi-stage marketing endeavors. We conduct a scenario-based, experimental study among 103 knowledgeable purchasing managers in customer companies to the adhesives industry, measuring willingness-to-pay, perceived relationship value, and price importance with a limit conjoint analysis. Multi-level modeling is used to test our hypotheses. The results show that comprehensive multi-stage marketing significantly increases purchasing agents' willingness-to-pay, mostly through their relationship value perception, and especially when the customer company is in a less powerful position toward its own customers. For managers, our study highlights the benefits of comprehensive multi-stage marketing over the other multi-stage marketing types.     

Are Rising College Premiums Capitalized into House Prices? Evidence from China

Many areas in China experienced steeply rising house prices beginning in 2003. We test whether a change in local residency requirements may have played a role in driving up house prices in some places by tying access to Chinese universities to local homeownership status in the presence of a rising college premium. We generate a novel dataset that combines China housing market and neighborhood data with household and university admission data. We find evidence of capitalization effects and a sizable increase in the likelihood of homeownership postpolicy change in places with the greatest preferential access to China's elite universities.     

Applying Hedonic Pricing Models and Factorial Surveys at Parker Pen to Enhance New Product Success

Walking the path from new product concept to successful commercialization is a tightrope act. Product developers must carefully balance a variety of factors, including predictions of consumer price sensitivity as well as which combination of product attributes will be most valued by the intended market. A well-chosen mix of analytical tools can enhance a firm's chances of accurately predicting market demand. Chuck Tomkovick and Kathryn E. Dobie describe how the integration of two product attribute assessment techniques–hedonic pricing models and factorial surveys–allows product designers to more accurately gauge price sensitivity and market receptivity to new product designs. They also describe how these analytical tools were used to improve decision-making in product development at the Parker Pen Company, and they discuss the role these tools can play in facilitating the transition from concept to commercialization. Hedonic price analysis is an econometric method for determining the value purchasers place on attributes of existing products. In product development, factorial surveys are used to identify the value members of the target market place on new product concepts and prototypes. When used in combination with identified hedonic prices, the responses to a factorial survey allow product developers to predict consumer willingness-to-pay for various combinations of new product attributes. Following development of prototypes for two new product lines, product developers at the Parker Pen Company used hedonic pricing models and factorial surveys as a means for reducing demand uncertainty and for clarifying what consumers were willing to pay for various combinations of product attributes that were under consideration. The integration and use of these techniques involved a five-step process of target market identification, product attribute identification, hedonic price estimation, administering of the factorial survey, and determination of consumer willingness-to-pay. The results of these analyses allowed Parker Pen to better focus product development efforts on those design elements for which test market customers indicated both demand and willingness-to-pay. The Parker Pen Company found hedonic pricing and factorial surveys useful for predicting both the rate and the degree of change in consumers' marginal utility for specific product attributes. The usefulness of these techniques also extends beyond the early stages of new product conception. These techniques are helpful in the development and implementation of dynamic new product marketing mix strategies, including such elements as product design, pricing, channel selection, and promotion.     

Lenders’ pricing strategy: Do neighborhood risks matter?

This article explores the different pricing strategies of lenders who originate both government-sponsored enterprise (GSE) and non-GSE loans. We find that conditional on loan and borrower characteristics and some observable local economic factors, mortgage rates on GSE loans vary significantly across regions. However, we observe no sizable regional variation in loan amounts or default risk. By contrast, the mortgage rates on non-GSE loans depend almost entirely on borrowers and loan characteristics. In addition, we find that spatial variations in GSE mortgage rates are highly responsive to regional prepayment risk. Our results are robust to various controls for neighborhood characteristics, including regional-level bank competition, borrower accessibility to mortgages, and household income levels. Overall, the findings offer a novel insight into how lenders adjust pricing strategies in response to a changing lending environment. The results provide implications relating to the present and imminent dangers of housing bubbles and the intensified refinancing wave following the COVID-19 pandemic.     

Estimating willingness-to-pay for broadband attributes among low-income consumers: Results from two FCC lifeline pilot projects

Recent studies have confirmed that broadband adoption (as opposed to simply having access to broadband infrastructure) is positively linked with economic growth. In light of this, federal policy efforts have switched from focusing mainly on the provision of infrastructure to more explicit adoption-oriented efforts. One of those efforts was the Federal Communications Commission’s (FCC’s) Low-income Broadband Lifeline Pilot Projects, which ran from 2013 to 2014. The program worked with 14 private telecommunications firms to subsidize household broadband adoption for low-income households by providing discounted monthly and equipment costs. Low-income households are an important component of the broadband adoption puzzle: between 2003 and 2013, the adoption gap between low-income and high-income households actually increased by 5% points. This paper focuses on two specific FCC Broadband Lifeline Pilot projects that allowed consumers to make choices among different options, such as data allowance, speed, and wireless vs. wired connections. Conditional logit models are used to develop estimates of consumer’s willingness-to-pay for specific broadband attributes. The results indicate that low-income consumers have a preference for smartphone connections (versus aircards) – and that this effect is even more pronounced for those households earning less than $20,000; that low-income consumers have a preference for wired connections (versus wireless); and that there is evidence that low-income consumers are willing to pay for an extra GB of data each month – but not for the speed of their connection.     

Energiewende und Übertragungsnetzausbau: Sind Erdkabel ein Instrument zur Steigerung der gesellschaftlichen Akzeptanz des Leitungsbaus? Eine empirische Untersuchung auf Basis der Kontingenten Bewertungsmethode

Transmission network development has led to protests throughout Germany. Many studies present underground cables as a means to increase public agreement to transmission line construction and network development. This paper verifies this thesis analyzing the willingness-to-pay of private households for underground cable employment, which allows for a distinct analysis of strategic behavior and opportunity costs that is omitted in classic questionnaire designs. The results of a contingent valuation study conducted in November and December 2012 in four regions of Germany, which are affected by transmission line development in different ways, are presented. At first glance, an analysis of 1.003 household responses confirms common findings with a majority of households favoring underground cables (about 60 %), albeit preferences vary strongly between sample regions. Willingness-to-pay, however, relativizes this result. A near share of 50 % of households voting for underground cables is not willing to accept an increase in electricity prices to finance respective projects (free riders). The fact that positive willingness-to-pay does not correlate positively with increasing lengths of underground cables in 60 % of cases underlines that underground cables are not supported unconditionally. All-in-all, a flat public approval of underground cable technology cannot be presumed based on WTP-evaluation. Preferences about underground cables and corresponding WTP are explained with demographic characteristics and attitudes using regression models. Fundamental thoughts on energy- and environmental policies do not serve to explain responses. Instead, regional factors and subjective opinions on how to finance such kind of infrastructure measures influence preferences for underground cables.     

中部地区农村居民消费与农村经济增长关系的实证研究

启动农村居民消费,开拓农村市场,是推动国民经济稳定发展的重大课题。文章运用回归分析、EG协整检验和方差分解等方法对1996年～2007年中部地区农村居民消费与农村经济增长的关系进行了实证研究,基本结论为：中部地区农村居民消费与农村经济增长具有正相关关系,且存在协整关系。     

Consumer valuation of information about food safety achieved using biotechnology: Evidence from new potato products

This study focuses on the role of food labels and information for affecting consumers’ valuation of food safety achieved through application of biotechnological (biotech) methods. In 2002, potato products cooked to a high temperature were first reported to contain the human carcinogen acrylamide. Research discoveries using genetic engineering can substantially reduce carcinogenic-forming potential, and thereby increase food safety of potato products. Adult consumers from three distant regions of the U.S. were the subjects in lab auctions of potato products. They engaged in distinct rounds of bidding, first without packaged information and again after receiving information about the food safety risks and benefits of new biotech potato products. The study finds that willingness-to-pay (WTP) for these new potato products are not significantly different from conventional potato products under no information. However, exposure to a scientific perspective and scientific plus industry perspectives increases participants’ willingness-to-pay for the new potato products and reduces willingness-to-pay for conventional products. Exposure to the negative perspective on the new technology significantly reduces willingness-to-pay. Consumer valuation of the new potato products is affected by food labels, information, and consumer attributes. A consumer information program could be needed to gain consumer acceptance of these potato products or other foods that have been genetically modified to increase certain food safety dimensions.     

Stromspeicher im Quartier

Electricity storage is a possible flexibility option to increase the share of fluctuating electricity sources from renewable energies in the electricity system. In the past, most attention was paid to household and large storage facilities. Community storage solutions at the meso level have so far been largely neglected. It is only in the context of the change in legislation for the electricity supply of tenants that neighborhood solutions have recently been increasingly discussed.In essence, this article examines the challenges currently arising in the context of the implementation of electricity storage facilities at community level in Germany. To this end, the term “community storage” is first being discussed and outlined. Subsequently, economic-legal and socio-cultural challenges are presented and discussed as central challenges in the implementation of neighborhood storage solutions in Germany. Based on the discussion of current challenges, possible business models for the implementation and operation of district storage facilities in Germany will then be derived.     

资源位定律及其应用

本文首先从硬资源和软资源的角度分析了资源整合的机理：硬资源是互不相交的闭集，软资源是可以相互交叉的邻域（开集），软资源是资源整合的媒介，不同硬资源闭集的邻域的交集非空是资源整合的必要条件。接着，提出了关于经济系统资源整合的资源位第一定律和第二定律。资源位第一定律指出，经济系统所能整合的最少外部资源的强度等于包含该经济系统资源位的最小凸集的测度与其实际资源位集合的测度之差，并在此基础上提出了系统势力的概念。资源位第二定律是指，在经济系统的资源位已呈凸集的情况下．可以通过引进凸集外部的一个资源点，将资源位拓展为一个凸锥。在这种情况下，所整合的外部资源可以远远大于经济系统自身的资源。最后．根据这两个资源位定律，提出了经济发展的资源整合对策。     

The Impact of LEED Neighborhood Certification on Condo Prices

The U.S. Green Building Council offers LEED certification for existing and new neighborhood developments that meet sustainable urban development standards. Features of sustainable urban development have been found to positively affect residential sales prices. We investigate whether the intangible labeling effects of LEED neighborhood certification add a premium to the sales prices of LEED and non‐LEED–certified condos. Using a quasi‐experiment, transaction data from Portland, Oregon, and a spatio‐temporal autoregressive (STAR) model, we find no evidence that the intangible labeling effects of LEED neighborhood certification directly or indirectly affect sales prices. Our results suggest that, contrary to LEED building certification, which we find adds a premium to condo sales prices, the LEED neighborhood label by itself fails to add value for condo buyers. Explanations for our findings include market acceptance, neighborhood delineation issues and the free rider problem as it relates to public goods.     

Antecedents of functional integration during new product development: The purchasing–marketing link

In response to different economic and business trends, companies are becoming increasingly dependent on external resources and capabilities as they seek to cater for an ever more complex and challenging demand. Such dependence has led an important group of scholars to draw attention to the inevitable integration of the purchasing and marketing functions. We stress here the need for such integration during new product development, and seek the mechanisms that may promote purchasing–marketing integration. Accordingly, this study describes two essential components underlying the concept of purchasing–marketing integration, and tests the effect of different integration mechanisms gathered from the literature on these two components. The model is tested on a sample of 141 Spanish industrial companies. Our results show that each one of these integration mechanisms varies in its effectiveness in promoting each key component of purchasing–marketing integration. Taking these asymmetric effects into account is crucial for selecting the appropriate purchasing and marketing integration devices within companies.     

Trading off nutrition and education? A panel data analysis of the dissimilar welfare effects of Organic and Fairtrade standards

Millions of smallholder farmers in developing countries participate in different types of sustainability standards. A growing body of literature has analyzed the welfare effects, with mixed results. Yet, there are important knowledge gaps. First, most existing studies have looked at the effects of one standard in one country. When comparing between studies it is unclear whether dissimilar outcomes are the result of different standards or different local conditions. Second, most studies have used cross-section data, so that selectivity issues remain a challenge. Third, existing work has primarily analyzed effects in terms of purely economic indicators, such as prices and income, ignoring other dimensions of household welfare. We address these shortcomings using panel data from small-scale coffee producers in Uganda and comparing the effects of two of the most popular sustainability standards, namely Organic and Fairtrade. Welfare effects are analyzed in terms of household expenditures, child education, and nutrition. Results show that Organic and Fairtrade both have positive effects on total consumption expenditures. However, notable differences are observed in terms of the other outcomes. Organic contributes to improved nutrition but has no effect on education. For Fairtrade it is exactly the other way around. We explore the mechanisms behind these differences.     

A Principal Component Logistic Analysis of the Mobility Decision in Transitional Neighborhoods

This study represents an extension of the literature that examines the factors affecting a household's decision to make an intrametropoli-tan move by emphasizing the importance of neighborhood characteristics in addition to the traditional life-cycle variables on the decision to move. Because of the dichotomous nature of the dependent variable and the collinearity among the independent variables, we employ both principal component and logit analysis. The primary data base is drawn from a sample of households moving into and out of two areas in St. Louis.
The results indicate that many of the traditional life-cycle variables are significant, although some behave differently than in the usual case because of the transitional nature of the neighborhoods we examine. The results also suggest that a household's perceptions regarding the quality of the neighborhood are also important determinants of mobility. Finally, when the maximum likelihood logit analysis results are compared with the principal component logit results, we find that the principal component logit technique performs better in almost all instances.     

Targeting urban malnutrition: a multi-city analysis of the spatial distribution of childhood nutritional status

This paper assesses the degree to which childhood malnutrition and its contributing factors are clustered by neighborhood in seven different cities in Africa, Asia, and Latin America. The analysis is based on data from eight different national household surveys that used a two-stage sampling design (households within clusters). Spatial clustering was assessed using the intracluster correlation coefficient (ρ), which may be interpreted as the expected correlation between any randomly selected pair of observations drawn from the same cluster. In general, per capita expenditure and the share of the household budget spent on food showed relatively high spatial clustering across the seven cities, but the magnitude of this clustering varied markedly from city to city. Spatial clustering in the provision of basic services also varied greatly. There was consistently little evidence of spatial clustering of infectious disease, childhood mortality, or the weight-based nutrition indicators. Age-standardized height, on the other hand, showed a little more spatial clustering, with a median intracluster correlation of ρ=0.12. Some cities showed relatively higher levels of spatial clustering on several measures of deprivation simultaneously, while other cities showed consistently lower levels of clustering. Many nutrition interventions are intrinsically geographically targeted. While geographical targeting tends to be administratively simpler than individual targeting and can be politically convenient, the current analysis suggests that where nutrition interventions are focused on stunting (low height-for-age), targeting by neighborhood may often lead to unacceptably high rates of undercoverage and leakage of benefits to the non-needy.