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Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach

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Author Info
Peter Boxall ()
Wiktor Adamowicz
Abstract

A finite mixture approach toconditional logit models is developed in whichlatent classes are used to promoteunderstanding of systematic heterogeneity. The model is applied to wilderness recreationin which a branded choice experiment involvingchoice of one park from a demand system wasadministered to a sample of recreationists. The basis of membership in the classes orsegments in the sample involved attitudinalmeasures of motivations for taking a trip, aswell as their stated preferences overwilderness park attributes. The econometricanalysis suggested that four classes of peopleexist in the sample. Using the model toexamine welfare measures of some hypotheticalpolicy changes identified markedly differentwelfare effects than the standard singlesegment model, and provided insight into thedifferential impact of alternative policies. Copyright Kluwer Academic Publishers 2002

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File URL: http://hdl.handle.net/10.1023/A:1021351721619
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 23 (2002)
Issue (Month): 4 (December)
Pages: 421-446
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:enreec:v:23:y:2002:i:4:p:421-446

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Related research
Keywords: choice experiments; latent class; environmental valuation; preference heterogeneity;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Yatchew, Adonis & Griliches, Zvi, 1985. "Specification Error in Probit Models," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 134-39, February. [Downloadable!] (restricted)
  2. I Salomon & M Ben-Akiva, 1983. "The use of the life-style concept in travel demand models," Environment and Planning A, Pion Ltd, London, vol. 15(5), pages 623-638, May. [Downloadable!] (restricted)
  3. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239. [Downloadable!] (restricted)
  4. Cameron, Trudy Ann & Englin, Jeffrey, 1997. "Respondent Experience and Contingent Valuation of Environmental Goods," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 296-313, July. [Downloadable!] (restricted)
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  5. Boxall, Peter C. & Adamowicz, Wiktor L., 1999. "Understanding Heterogeneous Preferences in Random Utility Models: The Use of Latent Class Analysis," Staff Paper Series 24090, University of Alberta, Department of Rural Economy. [Downloadable!]
  6. Adamowicz, Wiktor & Swait, Joffre & Boxall, Peter & Louviere, Jordan & Williams, Michael, 1997. "Perceptions versus Objective Measures of Environmental Quality in Combined Revealed and Stated Preference Models of Environmental Valuation," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 65-84, January. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

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  3. Tanya O’Garra & Susana Mourato, 2007. "Public Preferences for Hydrogen Buses: Comparing Interval Data, OLS and Quantile Regression Approaches," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(4), pages 389-411, April. [Downloadable!] (restricted)
  4. Moore, Rebecca, 2008. "Using Attitudes to Characterize Heterogeneous Preferences," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6488, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  5. Tonsor, Glynn T. & Olynk, Nicole & Wolf, Christopher, 2008. "Consumer Preferences for Animal Welfare Attributes: Case of Gestation Crates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6062, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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  7. Katrina Mullan & Andreas Kontoleon, 2009. "Participation in Payments for Ecosystem Services programmes in developing countries: The Chinese Sloping Land Conversion Programme," Environmental Economy and Policy Research Working Papers 42.2009, University of Cambridge, Department of Land Economics, revised 2009. [Downloadable!]
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  9. Bhattacharjee, Sanjoy & Petrolia, Daniel R. & Hanson, Terrill R., 2009. "Study of Evacuation Behavior of Coastal Gulf of Mexico Residents," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46845, Southern Agricultural Economics Association. [Downloadable!]
  10. Birol, Ekin & Villalba, Eric Rayn & Smale, Melinda, 2007. "Farmer preferences for Milpa diversity and genetically modified maize in Mexico: A latent class approach," IFPRI discussion papers 726, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  11. Kristine M. Grimsrud & Ron C. Mittelhammer & Robert P. Berrens, 2006. "A Mixture Model of Consumers’ Intended Purchase Decisions for Genetically Modified Foods," Economics Bulletin, Economics Bulletin, vol. 3(23), pages 1-11. [Downloadable!]
  12. Ekin Birol & Eric Rayn Villalba, 2006. "Estimating Mexican Farmers’ Valuation of Milpa Diversity and Genetically Modified Maize: A Choice Experiment Approach," Environmental Economy and Policy Research Working Papers 21.2006, University of Cambridge, Department of Land Economics, revised 2006. [Downloadable!]
  13. Riccardo Scarpa & Susanne Menzel, 2005. "Protection Motivation Theory and Contingent Valuation: Perceived Realism, Threat and WTP Estimates for Biodiversity Protection," Working Papers 2005.26, Fondazione Eni Enrico Mattei. [Downloadable!]
  14. Junyi Shen & Tatsuyoshi Saijo, 2007. "Does energy efficiency label alter consumersf purchase decision? A latent class approach on Shanghai data," OSIPP Discussion Paper 07E005, Osaka School of International Public Policy, Osaka University. [Downloadable!]
  15. Christoph, Inken B. & Roosen, Jutta & Bruhn, Maike, 2006. "Willingness to pay for genetically modified food and non-food products," 2006 Annual meeting, July 23-26, Long Beach, CA 21303, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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