understanding heterogeneous preferences in random utility models a latent class approach a finite mixture approach toconditional logit models is developed in whichlatent classes are used to promoteunderstanding of systematic heterogeneity the model is applied to wilderness recreationin which a branded choice experiment involvingchoice of one park from a demand system wasadministered to a sample of recreationists the basis of membership in the classes orsegments in the sample involved attitudinalmeasures of motivations for taking a trip aswell as their stated preferences overwilderness park attributes the econometricanalysis suggested that four classes of peopleexist in the sample using the model toexamine welfare measures of some hypotheticalpolicy changes identified markedly differentwelfare effects than the standard singlesegment model and provided insight into thedifferential impact of alternative policies

serial nonparticipation in repeated discrete choice models we consider alternative econometric strategies for addressing serial nonparticipation that is repeated choice of the same alternative or same type of alternative across a series of choice occasions in data typically analyzed within the repeated discrete choice framework single and double hurdle variants of the repeated discrete choice model are developed and applied to choice experiment and multisite seasonal recreation demand data our results suggest that hurdle models can generate significant improvements in statistical fit and qualitatively different policy implications particularly in choice experiment applications where the proper treatment of serial nonparticipation is relatively more ambiguous

from plan to plant effects of certification on operational start up in the emergent independent power sector in this paper we study the transition from planned venture to operational start up in the emergent independent power sector planned ventures face tremendous obstacles in assembling the resources necessary to begin operations we hypothesize and show that formal certification from authorized actors increases the likelihood of making this transition moreover we find that the effects of certification are contingent on the legitimacy of the sector as a whole certifications have a stronger effect on start ups when sector legitimacy is low than when it is high this research helps us understand a rarely studied organizational transition from entrepreneurial intention to actual operations within nascent sectors it directs attention to the legitimating effects of formal certification highlights the importance of a multilevel approach to legitimacy and contributes to the growing rapprochement between entrepreneurial studies and institutional theory

price bubbles and crashes in experimental call markets abstract price bubbles relative to intrinsic dividend value are observed using a call market trading institution market prices tend to track intrinsic value only when the same group of highly experienced traders participate in three consecutive 15 round markets

preferences of scotch malt whisky consumers for changes in pesticide use and origin of barley abstract in a case study related to scotch malt whisky production this study analyses consumers perceptions and preferences regarding two aspects that have emerged in the debate on sustainable production and consumption and on environmentally responsible food choice namely i the use of pesticides in agriculture and ii the provenance of food ingredients we carried out a choice experiment to investigate preferences and estimate willingness to pay of scotch malt whisky consumers for pesticide use restrictions and the potential impact on the production of one of its essential ingredients barley using latent class models we find that about half of the respondents are non demanders with respect to both attributes and only a third of the sample population are willing to pay for further pesticide restrictions demand for more environmentally responsible production of scotch malt whisky is therefore limited indicating that in the case of scotch malt whisky consumers are not likely to be key to driving sustainable production with respect to barley provenance being able to claim a 100 scottish product could be a plausible commercial option for some producers to pursue in a competitive market methodologically the scale adjusted latent class model proved to be successful in uncovering preference heterogeneity and its sources in including non demanders in the analysis and in accounting for differences in scale amongst respondents

hurdle and latent class approaches to serial non participation in choice models in repeated choice modelling studies it is often the case that individuals always select the status quo option although this pattern may reflect considered choices they may also be the result of alternative decisions about whether to participate in the choice process at all alternative methods of dealing with this behaviour each with associated implications for estimates of economic values are presented in particular we consider the alternative strategies of excluding such individuals from the data using hurdle models to explicitly model this group and propose the use of latent class models to endogenously allow for different preference structures an advantage of the latent class approach is that the form of the non participation need not be defined in advance these approaches are considered using uk choice experiment data on food choices where the attributes include genetic modification of food the latent class approach reveals the presence of two forms of non participation in the data

discrete choice experiments in developing countries willingness to pay versus willingness to work a concern when conducting stated preference valuation studies in rural developing or very low income contexts is the use of monetary willingness to pay wtp estimates in circumstances where cash incomes are extremely low a significant proportion of the population are not engaged in waged labour and the exchange of goods or services is augmented through barter or work exchange the role of money is likely to be different from that within an urban developed setting as such ability to pay using money may be impaired and downwardly biased when compared with other mediums of exchange in recognition of this several studies have used hypothetical labour contributions as payment vehicles and a common finding is that households are more often willing to contribute labour than they are money in this paper we present the results of a split sample dce using money and labour contributions as payment vehicles for improved drinking water quality in kandal province cambodia we find little differences between the payment vehicles in terms of attribute non attendance marginal utilities of attributes or derived welfare values we argue that this provides support for the use of wtp in rural developing areas where there are functioning labour markets

judgemental overconfidence self monitoring and trading performance in an experimental financial market we measure the degree of overconfidence in judgment in the form of miscalibration i e the tendency to overestimate the precision of one s information and self monitoring a form of attentiveness to social cues of 245 participants and also observe their behaviour in an experimental financial market under asymmetric information miscalibrated traders underestimating the conditional uncertainty about the asset value are expected to be especially vulnerable to the winner s curse high self monitors are expected to behave strategically and achieve superior results our empirical results show that miscalibration reduces and self monitoring enhances trading performance the effect of the psychological variables is strong for men but non existent for women

what affects the market s ability to adjust for optimistic forecast bias evidence from experimental asset markets abstract this study uses experimental asset markets to investigate the effects of experience and common knowledge on a market s ability to adjust for optimistic forecast bias as a baseline we find that period end prices reflect unbiased forecasts in markets with private information and inexperienced traders with low bias forecasts traders need experience before price adjusts for the bias with high bias forecasts traders need experience and public forecast releases before price adjusts for the bias overall our findings provide insight into identifying conditions that are critical for the full revelation of biased imperfect forecasts and provide direction for future theoretical work

experience and confidence in an internet based asset market experiment the experience effect in asset markets is one that was thought to be settled as subjects gained experience with the interface and each other they typically exhibit fewer instances of mispricing and at lower magnitudes but questions regarding trading experience are not easy to address in the lab with the typical subject pool since the kind of experience one can typically generate in the lab is experience with the experimental environment itself not with external environments however in virtual worlds asset markets are highly evolved providing a subject pool with skilled and experienced traders that can be accessed via the internet this study compares experimental asset markets with participants recruited from virtual world trading groups to experimental markets with participants recruited from the virtual world at large i further examine trader performance and trading behavior within markets the findings indicate that asset markets with virtual world participants recruited from trading groups are more prone to exhibit bubbles than are markets with virtual world participants recruited at large within condition experienced traders are less likely to follow fundamentals and more likely to engage in strategies that result in loss of earnings excess confidence is rejected as an explanation for this pattern as confidence is found to be related to higher earnings and fundamental value trading strategies

is it a car or a truck managerial beliefs the choice of product architecture and the emergence of the minivan market segment new markets segments are a common setting for studies in technology strategy these studies generally assume that new segments already exist or have formed following the introduction of a product innovation by an entering firm thus theory on the role of established firms in the emergence of new market segments is underdeveloped this study informs current research by explaining the product innovation decisions of established firms during the emergence of a new market segment the results of a case study on the development and commercialization of the minivan at chrysler ford and general motors between 1970 and 1985 indicate that existing theories based on managerial cognition firm capabilities economic incentives and organizational structure are insufficient to explain the decisions this article develops theory based on the interrelationship of these four mechanisms

failure is an option institutional change entrepreneurial risk and new firm growth does an institutional change that lowers failure barriers improve new firm growth we take advantage of a quasi natural experiment in japan that drastically reduced the stringency of bankruptcy regulations to examine this question using longitudinal data over a 10 year period we find that bankruptcy reform increases the rates of bankruptcy and founding and more importantly the likelihood of high growth ventures by disproportionately encouraging elite individuals i e those with superior human and social capital to start firms in turn these firms are more likely than others to achieve high growth broadly put we contribute to research at the nexus of institutional theory and entrepreneurship by emphasizing the connectedness of barriers to failure venture growth and elite entrepreneurs we also highlight how institutional change that eases bankruptcy change can foster a regenerative cycle of failure founding and growth by attracting more capable entrepreneurs overall we conclude that lowerin

super partes assessing the effect of judicial independence on entry incumbents can enjoy a cost advantage vis a vis new entrants and so deter new firm entry by establishing and leveraging connections with the judicial system connected firms may in fact avoid fully complying with the costly norms implied by a law a regulation or a contract at the same time they can also credibly threaten to sue new entrants therefore a change in the institutional environment that diminishes the ability of incumbent firms to establish judicial connections i e an increase in judicial independence can promote entrepreneurship exploiting reforms that change the way in which u s state judges are selected we confirm that this is the case and we show that this effect is more salient in states and industries where the likelihood of entering into a business dispute is higher the paper also sheds some light on the mechanisms behind this effect data and the online appendix are available at https doi org 10 1287 mnsc 2017 2794 this paper was accepted by toby stuart entrepreneurship

can a low carbon energy transition be sustained in post fukushima japan assessing the varying impacts of exogenous shocks abstract in the aftermath of the fukushima nuclear crisis japan began contemplating energy policy reforms that drew inspiration from low carbon research this article focuses on a question central to advancing low carbon research in japan and elsewhere namely how does an exogenous shock affect the onset magnitude and permanence of changes in electricity consumption the article employs intervention analysis with an autoregressive moving average arma model to answer this question the data analysis reveals that post fukushima electricity use underwent a sudden significant and sustained reduction across japan the shock not only affected the tokyo electric power company tepco coverage area but the more distant kansai electric power company kepco coverage area large electricity users responded with an immediate and significant reduction in electricity consumption that rebounded to below pre crisis levels households responded more gradually with no rebound two of the more interesting results from the data analysis the persistence in reductions in the more distant kepco coverage area and the rebound among large users are then explained with a review of survey data and policy trends overall the quantitative and qualitative evidence suggests that an exogenous shock may give rise to a reduction in electricity consumption but cannot sustain a low carbon transition

environmental jolts institutional change and the creation of entrepreneurial opportunity in the us electric power industry the relationship between institutional change and entrepreneurship is poorly understood we build the theory in this area by tracing institutional change in the us electric power industry over a 40 year period our analysis shows that environmental jolts mobilize actors to reformulate institutions resulting in increased entrepreneurial opportunity when the institutional environment is stable we find that incumbent organizational forms and embedded logics present formidable obstacles to entrepreneurial activity environmental jolts however catalyze search processes and motivate the evaluation of current institutional logics specifically in the case of the electric power industry environments of abundance and regulation resulted in homogeneity of organizational structures and strategies and few entrepreneurial opportunities environments marked by scarcity and crisis however witnessed heavy scrutiny of existing institutional arrangements that eroded their taken for grantedness and symbolic value resulting in opportunities for entrepreneurial action

lexicographic preferences in contingent valuation a theoretical framework with illustrations this paper considers some implications of l ordering an incommensurable preference model proposed in earlier cvliterature the structure and existence of inverse demand functions is shown to be a function of three elements the relationship between goods and wants wta wtp formats and the endowment of the good in a many to many relationship uncompensated and even compensated inverse demand functions may exist whereas a one to one relationship implicitly assumed in earlier literature does not necessarily produce either an illustration is provided in support of the theoretical framework especially the hypothesis that one to one relationship and high share of cv responses revealing lexicographic preferences are correlated

change actors in the u s electric energy system the role of environmental groups in utility adoption and diffusion of wind power we study the contribution of environmental groups to new technology adoption and diffusion by dominant incumbents building on institutional and social movement theory we develop a theoretical framework that sheds light on environmental groups as change actors we theorize that by approaching embedded key constituents with various strategic actions environmental groups affect taken for granted beliefs build legitimacy for renewable energy technologies and convince skeptical constituents to support the new technology we verify our theoretical framework with a case study of wind power development in colorado we find that environmentalists educate constituents on the benefits of the new technology engage in activities leading to regulatory and legislative decisions for wind while also providing direct assistance to the utility as a result utilities are both pressured and encouraged to adopt and diffuse wind power on a large scale this research directs attention to the role of environmental groups as change actors and the legitimating effects of their actions it highlights their part in creating a more favorable institutional environment for new technologies while directly influencing the incumbent s technology choice this paper contributes to an understanding of bottom up actor initiated changes in energy systems taking into account both the systemic technological infrastructure and the institutional context

innovation processes in large technical systems market liberalization as a driver for radical change abstract electricity supply is a large technical system which exhibits strong path dependencies and high barriers for radical innovations recent market liberalization however has initiated a fundamental restructuring the paper analyzes how liberalization has altered innovation processes in the field of electricity supply we examine three radical innovations under monopoly conditions and contrast the findings with the results from a survey on the innovation behavior of electric utilities in liberalized markets we argue that the selection environment for innovations has changed in various respects in our sample new options open to innovation activities have emerged at the level of the firm and utility strategies turn out to be more heterogeneous this may be interpreted as an increase in the variety of search processes which may lead to a mid term decrease of path dependencies

institutional regime shift in intellectual property rights and innovation strategies of firms in china this study develops a novel conceptual framework to understand the differential impact of formal institutional regime shift in intellectual property rights on the innovation and patenting strategies of chinese and western firms operating in china we argue that to the extent that chinese firms have been deeply embedded in china s informal institutions they are less responsive to formal institutional changes than western firms operating in china using the major china patent law reform of 2001 as an exogenous event we find results consistent with our key arguments with the strengthening of the previously weak utility model patent protection chinese firms are less likely to apply for such patents to safeguard their innovations than western firms however this difference becomes less pronounced in regions with higher quality intellectual property rights and legal institutions that foster research and development and innovation and when western firms gain longer operational experience in china this s

structuring a theory of moral sentiments institutional and organizational coevolution in the early thrift industry the authors investigate the coevolution of organizations and institu tions they study how institutional definitions rules and expectations unfold in tandem with the organizational structures and processes that embody those institutions the research site is the early thrift industry changes in thrifts technical environment the rise of a transient and heterogeneous population and institutional environment the rise of progressivism propelled this coevolutionary process the coevolution of thrift organizations and institutions proceeded primarily through selection adaptation was constrained by both institutional factors it was difficult to adopt a novel institutional logic and technical factors early thrifts were generally small so entry and exit were easy

property rights regimes in complex fishery management systems a choice experiment application the tonle sap wetland fishery was previously divided into 3 different management zones for conservation open access fishing and private fishing rights to the private fishing zone involved auctions for exclusive rights to temporarily designated plots this paper aims to explore the auction based system by investigating how this fishery management system affects different groups of small scale fishermen and how different characteristics of the fishing lots affect the bidding a choice experiment approach was used to model fishermen s choices in a hypothetical auction market by offering fishermen the choice between purchasing different potential fishing lots and a no purchase option implying fishing only in the communal fishing grounds the preferred latent class model with two segments of fishermen showed that the bidding behavior of the more privileged group out competes the other group irrespective of the lot characteristics this result suggests that it is unlikely that the redesign of the auction system itself would be an effective way of securing access to fishing resources for the two observed groups of fishermen this implies that open access fishing grounds and or other regulations may also be needed in future management as they serve an important role for the poorer segments

how do respondents process stated choice experiments attribute consideration under varying information load the popularity of stated choice sc experiments has produced many design strategies in which researchers use increasingly more complex choice settings to study choice behaviour when the amount of information to assess increases we wonder how an individual handles such information in making a choice defining the amount of information as the number of attributes associated with each choice set we investigate how this information is processed as we vary its complexity four ordered heterogeneous logit models are developed each for an sc design based on a fixed number of attributes in which the dependent variable defines the number of attributes that are ignored we find that the degree to which individuals ignore attributes is influenced by the dimensionality of the sc experiment the deviation of attribute levels from an experienced reference alternative the use of adding up attributes where feasible the number of choice sets evaluated and the personal income of the respondent the empirical evidence supports the view that individuals appear to adopt a range of coping strategies that are consistent with how they process information in real markets and that aligning choice complexity with the amount of information to process is potentially misleading relevancy is what matters copyright 2006 john wiley sons ltd

nonspeculative bubbles in experimental asset markets lack of common knowledge of rationality vs actual irrationality we report the results of an experiment designed to study the role of speculation in the formation of bubbles and crashes in laboratory asset markets in a setting in which speculation is not possible bubbles and crashes are observed the results suggest that the departures from fundamental values are not caused by the lack of common knowledge of rationality leading to speculation but rather by behavior that itself exhibits elements of irrationality much of the trading activity that accompanies bubble formation in markets where speculation is possible is due to the fact that there is no other activity available for participants in the experiment

institutional influences on business model choice by new ventures in the microgenerated energy industry abstract business model choice plays an important source of competitive advantage for new ventures in the microgeneration sector yet existing literature focuses on strategic management of internal resources as the constraints in this choice process in the energy sector external factors may be at least as influential in shaping these business models this paper examines the roles of politico institutional and socio institutional dynamics in the choice of business models for microgeneration ventures business models have traditionally been viewed as constructions of the internal values strategies and resources of organizations but this perspective overlooks the role that external forces have on these models particularly in more highly institutionalized contexts like microgeneration when these factors are introduced into the existing framework for business model choice the business model based less on firm decision making and more about variables that exist within national innovation systems and political structure local socio technological conditions and cognitive abilities of the entrepreneur and corresponding stakeholders

the self selection of complexity in choice experiments we investigate whether individuals will voluntarily increase the complexity of the tasks they complete within a discrete choice experiment dce we do this via a self selection of complexity design in which respondents choose whether to face choice sets comprising 3 4 or 6 alternatives we link this approach with the emerging excessive choice effect ece literature we find that 30 of the sample opt for the largest sets we test whether this choice of complexity reveals information about respondents capability commitment we find that it does since those with lowest initial error variance levels are most likely to later select the highest level of task complexity we argue that this result offers insights regarding the design of more cognitively efficient dce designs we consider the matching of respondents to the appropriate level of task complexity as analogous to the principal agent problem with asymmetric information rather than trying to understand respondents cognitive capability or commitment ex ante we propose that participants self select designs that achieve the researcher s objective of minimizing error variance copyright 2012 oxford university press

skew and attribute non attendance within the bayesian mixed logit model abstract we investigate non attendance to choice set attributes and the accommodation of preference heterogeneity within the mixed logit model we propose a generalisation of the mixed logit enabling the degree of skew of marginal utility distributions to be estimated the implementation is bayesian with the marginal likelihood used as an arbiter of model performance we find strong evidence of skew in the distributions of marginal utilities for most attributes models incorporating skew are preferred in all cases the irrelevance of an attribute to significant numbers of respondents is a possible cause of such skew we test alternative empirical accommodations of self reported attribute non attendance ana and continue to find strong evidence of skew in the distributions of marginal utilities even having accounted for ana we find that contrary to some recent findings respondents who report having ignored an attribute typically do indeed have a zero marginal utility for that attribute

the influence of task complexity on consumer choice a latent class model of decision strategy switching the literature indicating that person context and task specific factors cause consumers to utilize different decision strategies has generally failed to affect the specification of choice models used by practitioners and academics alike who still tend to assume an utility maximizing omniscient indefatigable consumer this article 1 introduces decision strategy selection within a maintained compensatory framework into aggregate choice models via latent classes which arise because of task complexity 2 it demonstrates that within an experimental choice task the model reflects changing aggregate preferences as choice complexity changes and as the task progresses the import of these findings for current practice model interpretation and future research needs is examined

refashioning a field connected consumers and institutional dynamics in markets we investigate the participation of engaged consumers in the fashion market through the lens of institutional theory we develop theoretical insights on the unintended market level changes that ensue when consumers who are avidly interested in a field connect to share ideas with one another we find that consumers take on some of the institutional work previously done primarily by paid actors and introduce new forms of institutional work supportive of the field we show that engaged consumers can precipitate the formation of new categories of actors in the field and the contestation of boundaries between established and emergent actor categories further we propose that new consumer focused institutional logics gain momentum even while consumers support and promote preexisting logics through their practices we compare cases where discontented market actors have brought about market changes with our investigation of one where contented consumers unintentionally precipitated market level dynamics and we show that the accumulation of consumers micro level practices can have pervasive and profound impacts

causes and consequences of lexicographic choices in stated choice studies abstract stated choice sc methods and other choice experiments are now becoming increasingly popular for the valuation of environmental goods this paper shows that lexicographic choices lcs in an sc task or other types of choice experiments do not imply that the respondent has lexicographic preferences lcs may be a result of i study designs where differences between the alternatives are too great and ii simplification of the choice task a traditional approach that investigates motives for lexicographic choices mainly as a result of lexicographic preferences may therefore fail to reveal the whole motive range study designs that cause lcs whether such choices actually are based on non compensatory choices i e genuine lexicographic preferences or strategic behaviour or compensatory choices provide less information about preferences however providing they are not totally dominant such choices are not normally a serious modeling problem it is argued that simplification is a consequence of respondents differing abilities to choose such lcs contribute to the larger variances of sc data relative to less cognitively demanding valuation methods and might therefore have a significant impact on the implied valuation of non market goods if they are not handled in the analysis in data collection we should use survey designs that collect more signals and less noise and in data analysis we should use models that can separate signals from noise however there is obviously a limit to the amount of noise which can be separated from signals in a model and therefore how much noise such models can tolerate and still produce useful valuation estimates for the goods under consideration for further investigation of such limits a direct test procedure that can investigate whether each respondent has completed the task in a compensatory manner like the one presented in the current study is valuable

overcoming the liability of newness entrepreneurial action and the emergence of china s private solar photovoltaic firms abstract this study explores how entrepreneurs introducing a new organizational form can build legitimacy and capabilities to overcome significant liabilities of newness and how their actions and the institutional structure co evolve our multiple case study design enabled us to explicate specific actions that entrepreneurs founding china s private solar photovoltaic pv firms took as they built organizational capabilities and established their legitimacy vis a vis resource holders and global markets we identified three legitimacy based strategies they used leveraging their existing sources of legitimacy aligning their actions with established institutional rules and norms and enacting the institutional environment to change perceptions of what is legitimate we also found a stark contrast between the early and late entrants the early entrants had to build an effective organizational capability and establish their own firm s legitimacy as well as establish the legitimacy of the private chinese solar pv firm as a viable organizational form both domestically and abroad later entrants could leverage the legitimacy established by the early entrants enabling them to more easily and quickly access external resources and become competitive our findings also suggest an important role for government in promoting and supporting entrepreneurship that complements well established approaches namely through its policies and actions the government can create an environment in which experimentation and exploration is legitimate thereby making it easier for entrepreneurs new ventures and new organizational forms to access critical resources and realize their potential