Truong, Thuy D.; Adamowicz, Wiktor L.; Boxall, Peter C. - In: Resource and Energy Economics 39 (2015) C, pp. 89-107
the decision process. In this article, we develop a model that estimates cutoff levels endogenously. Our model has two … error components, one for the utility function and another for the cutoff function. This facilitates the estimation of the … cutoff as a function of individual specific variables. We estimate the model by maximizing the log-likelihood function that …