Measuring Willingness-to-Pay in Discrete Choice Models with Semi-Parametric Techniques

Abstract

It is usual to estimate willingness-to-pay in discrete choice models through Logit models -or their expanded versions. Nevertheless, these models have very restrictive distributional assumptions. This paper is intended to examine the above-mentioned issue and to propose an alternative estimation using non-parametric techniques (through Simple Index Models). Furthermore, this paper introduces an empirical application of willingness- to-pay for improved subway travel times in the City of Buenos Aires.