Willingness to pay -*Double Bounded Method - Dichotomous choice

[loxam no]

Hi !

I am new on this forum.
I need to estimate the willingness to pay for a product, by consumers. I did a survey, using the double bounded method.
Would you be willing to pay 50€ ? Yes/no
- If yes, would you be willing to pay 60€ ? yes/no
- If No, would you be willing to pay 40€ ? yes/no

I also have other variables that can influence the choice....

I would like to know the WTP mean for my product.

i read about the bivariate probit model but I don't know how to implement it on Stata...


Thanks by advance for your help !

[Mari Meir]

Hello,

Please make sure that you will obtain the mean willingness to pay given your questions are asked in categories.

Please refer to -help probit- or -help logit-

Best

[loxam no]

Thanks Mari,

I will have a look...
I also read about special model for that type of questions...

Regards,

[Babatope Akinyemi]

Hi Loxam,
Using bivariate probit may be more appropriate for your study given that you adopted double bounded contingent valuation.
You can estimate bivariate probit in stata using

biprobit depvar1 depvar2 [indepvars] [if] [in] [weight] [, options]

or

 doubleb varlist [if] [in] [weight] [, level(#) noconstant ]

.
Choice between which of the variants of estimation model to use depend on the theoretical framework adopted for your study and or assumptions on which the study is based.
Check up help biprobit and help doubleb for more information.

Kind regards,

Babatope

[loxam no]

Thanks a lot !

I am actually trying something with the doubleb model..
But I am not confident with my results,

Regards

[loxam no]

Babatope,

How must be the control variables in the doubleb model ?

Thanks!

[Babatope Akinyemi]

Hi Loxam,

Your post in #6

How must be the control variables in the doubleb model ?

is not clear to me.
Can you clarify what you are trying to say?

Kind regards,

Babatope

[loxam no]

Thanks Babatope,

Well, in the DOUBLEB model, you can add variables, like [weight] in the example. In the help, it is written that "the remaining variables will be intepreted as covariates or control variables".
I would like to know how must be that variables, that is to say how to present it in the database to include it in the model ? and how to interprate the results after the use of control variables ?

Thanks a lot !

Kind Regards,

[jahangir khan]

hi dear all
i am using double bounded dichotomous choice model for WTP estimation. i got my results. overall coefficient and p values are significant. now i need to find out marginal effects.please can anyone help me how to find these marginal effects?