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A portfolio choice model of the demand for recreational trips

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  • Tay, Richard
  • McCarthy, Patrick S.
  • Fletcher, Jerald J.

Abstract

Consumer choices of recreational trip-making involve a number of related decisions, including destination, trip frequency, length and timing of trip(s), and choice of mode(s). Previous analyses have generally developed tractable discrete choice models by limiting their focus to one or two decisions and conditioning on the others. The analysis presented in this paper takes a more general perspective by assuming that consumers choose one out of a set of trip portfolios which are made up of alternative destinations, trip frequencies and durations. The model is applied to recreational fishing activities, and produces estimation results that are consistent with the hypothesis of random utility maximization. Choice elasticities are calculated and indicate that portfolio demands are fairly elastic with respect to changes in water qualities and travel costs.

Suggested Citation

  • Tay, Richard & McCarthy, Patrick S. & Fletcher, Jerald J., 1996. "A portfolio choice model of the demand for recreational trips," Transportation Research Part B: Methodological, Elsevier, vol. 30(5), pages 325-337, October.
    • Handle: RePEc:eee:transb:v:30:y:1996:i:5:p:325-337
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    References listed on IDEAS

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    1. Kenneth E. Train & Daniel L. McFadden & Moshe Ben-Akiva, 1987. "The Demand for Local Telephone Service: A Fully Discrete Model of Residential Calling Patterns and Service Choices," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 109-123, Spring.
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    4. George R. Parsons & Michael S. Needelman, 1992. "Site Aggregation in a Random Utility Model of Recreation," Land Economics, University of Wisconsin Press, vol. 68(4), pages 418-433.
    5. R S Tay & P S McCarthy, 1994. "Benefits of Improved Water Quality: A Discrete Choice Analysis of Freshwater Recreational Demands," Environment and Planning A, , vol. 26(10), pages 1625-1638, October.
    6. Smith, V. Kerry & Kaoru, Yoshiaki, 1986. "Modeling recreation demand within a random utility framework," Economics Letters, Elsevier, vol. 22(4), pages 395-399.
    7. Ribaudo, Marc & Young, C. Edwin & Epp, Donald, 1984. "Recreation Benefits From An Improvement In Water Quality At St. Albans Bay, Vermont," Staff Reports 277577, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Björk, Peter & Jansson, Therese, 2008. "Travel Decision-making: The Role of Habit," MPRA Paper 25360, University Library of Munich, Germany, revised 27 Sep 2008.
    2. Chen, Min & Lupi, Frank, 2013. "Modeling Long Overnight Trips by Chaining Recreation Sites," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150489, Agricultural and Applied Economics Association.
    3. Grigolon, Anna B. & Kemperman, Astrid D.A.M. & Timmermans, Harry J.P., 2012. "The influence of low-fare airlines on vacation choices of students: Results of a stated portfolio choice experiment," Tourism Management, Elsevier, vol. 33(5), pages 1174-1184.

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