The Apple and Your Eye: Visual and Taste Rank-Ordered Probit Analysis with Correlated Errors

20 Pages Posted: 22 Jan 2009

See all articles by Laura Schechter

Laura Schechter

University of Wisconsin at Madison - Agricultural and Applied Economics; University of Wisconsin at Madison - Economics

Date Written: January 19, 2009

Abstract

I look at data from an experiment in which people rank apples according to how they think they will taste. They are then blindfolded and rank how they actually taste. I estimate a multinomial rank-ordered probit model with correlated errors between the taste and visual rankings. I find that the errors for visual characteristics are correlated based on coloring, while the errors for taste are correlated based on sweetness or tartness. Allowing for correlation between the errors in the two regressions shows that, although people often misperceive apple taste based upon visual cues, they do so in systematic ways. People who prefer the looks of an apple they think to be tart (Granny Smith), will like the taste of other apples which are also tart but less well-known (Jonagold).

Keywords: rank-ordered probit, apples, experiment, stated preference, revealed preference, marketing

JEL Classification: Q13, M31, C90, C35

Suggested Citation

Schechter, Laura, The Apple and Your Eye: Visual and Taste Rank-Ordered Probit Analysis with Correlated Errors (January 19, 2009). Available at SSRN: https://ssrn.com/abstract=1330139 or http://dx.doi.org/10.2139/ssrn.1330139

Laura Schechter (Contact Author)

University of Wisconsin at Madison - Agricultural and Applied Economics ( email )

427 Lorch St.
Madison, WI 53706-1503
United States

HOME PAGE: http://aae.wisc.edu/lschechter

University of Wisconsin at Madison - Economics ( email )

William H. Sewell Social Science Building
1180 Observatory Drive
Madison, WI 53706-1393
United States

HOME PAGE: http://aae.wisc.edu/lschechter

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