Taste Indicators and Heterogeneous Revealed Preferences for Congestion in Recreation Demand
AbstractResearchers using revealed preference data have mostly relied on the Mixed Logit (ML) framework to model unobserved heterogeneity. In this paper, we suggest an extension of this model where we integrate direct measures of taste and revealed preferences, under a unified econometric setting, to describe heterogeneous preferences for congestion in recreation demand. ML is a random parameter discrete choice model, which decomposes the coefficients of the regression equation into a mean effect shared by all individuals in the sample, and a deviation with respect to this mean, specific to each individual. Within this structure, heterogeneity is summarized using a parametric density function for the coefficients of the model. From this distribution one can identify the portion of people who like or dislike an attribute of the good. On the other hand, taste indicators, represented in a like-dislike scale, constitute complementary information about the distribution of tastes in the population. We combine both sources of information to characterize preferences in our model. The traditional ML suggests almost 60% of people in the sample like crowded places while our integrated model implies almost 100% of the people dislike congestion. These results show the beneâ€¦ts of using taste indicators to describe heterogeneous preferences for attributes describing alternatives of a choice set.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Agricultural & Resource Economics, UC Berkeley in its series Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series with number qt4rz5z706.
Date of creation: 11 Jun 2008
Date of revision:
Contact details of provider:
Postal: 207 Giannini Hall #3310, Berkeley, CA 94720-3310
Phone: (510) 642-3345
Fax: (510) 643-8911
Web page: http://www.escholarship.org/repec/are_ucb/
More information through EDIRC
mixed logic framework; recreation demand; research;
Other versions of this item:
- Vasquez Lavin, Felipe & Hanemann, William Michael, 2008. "Taste indicators and heterogeneous revealed preferences for congestion in recreation demand," CUDARE Working Paper Series 1075, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- Felipe Vásquez & Michael Hanemann, 2008. "Taste Indicators and Heterogeneous Revealed Preferences for Congestion in Recreation Demand," Working Papers 10-2008, Departamento de Economía, Universidad de Concepción.
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.:
- J. Miguel Villas-Boas & Russell S. Winer, 1999. "Endogeneity in Brand Choice Models," Management Science, INFORMS, vol. 45(10), pages 1324-1338, October.
- Walker, Joan & Ben-Akiva, Moshe, 2002. "Generalized random utility model," Mathematical Social Sciences, Elsevier, vol. 43(3), pages 303-343, July.
- Timmins, Christopher & Murdock, Jennifer, 2007. "A revealed preference approach to the measurement of congestion in travel cost models," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 230-249, March.
- Boxall, Peter & Rollins, Kimberly & Englin, Jeffrey, 2003.
"Heterogeneous preferences for congestion during a wilderness experience,"
Resource and Energy Economics,
Elsevier, vol. 25(2), pages 177-195, May.
- Boxall, Peter C. & Rollins, Kimberly S. & Englin, Jeffrey E., 2002. "Heterogeneous Preferences For Congestion During A Wilderness Experience," Working Papers 34133, University of Guelph, Department of Food, Agricultural and Resource Economics.
- Kerry Smith, V., 1981. "Congestion, travel cost recreational demand models, and benefit evaluation," Journal of Environmental Economics and Management, Elsevier, vol. 8(1), pages 92-96, March.
- Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
- von Haefen R.H. & Phaneuf D.J. & Parsons G.R., 2004. "Estimation and Welfare Analysis With Large Demand Systems," Journal of Business & Economic Statistics, American Statistical Association, vol. 22, pages 194-205, April.
- Ben-Akiva, Moshe & McFadden, Daniel & Train, Kenneth & Börsch-Supan, Axel, 2002.
"Hybrid Choice Models: Progress and Challenges,"
Sonderforschungsbereich 504 Publications
02-29, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim.
- Harris, Katherine M. & Keane, Michael P., 1998. "A model of health plan choice:: Inferring preferences and perceptions from a combination of revealed preference and attitudinal data," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 131-157, November.
- Murdock, Jennifer, 2006. "Handling unobserved site characteristics in random utility models of recreation demand," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 1-25, January.
- Train, Kenneth E & McFadden, Daniel L & Goett, Andrew A, 1987. "Consumer Attitudes and Voluntary Rate Schedules for Public Utilities," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 383-91, August.
- Bell, Frederick W. & Leeworthy, Vernon R., 1990. "Recreational demand by tourists for saltwater beach days," Journal of Environmental Economics and Management, Elsevier, vol. 18(3), pages 189-205, May.
- F. J. Anderson & N. C. Bonsor, 1974. "Allocation, Congestion, and the Valuation of Recreational Resources," Land Economics, University of Wisconsin Press, vol. 50(1), pages 51-57.
- Peter Schuhmann & Kurt Schwabe, 2004. "An Analysis of Congestion Measures and Heterogeneous Angler Preferences in a Random Utility Model of Recreational Fishing," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 27(4), pages 429-450, April.
- Kenneth E. McConnell, 1977. "Congestion and Willingness to Pay: A Study of Beach Use," Land Economics, University of Wisconsin Press, vol. 53(2), pages 185-195.
- McConnell, K. E., 1988. "Heterogeneous preferences for congestion," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 251-258, September.
- Louviere, Jordan J, 2001. " What If Consumer Experiments Impact Variances as Well as Means? Response Variability as a Behavioral Phenomenon," Journal of Consumer Research, University of Chicago Press, vol. 28(3), pages 506-11, December.
- Jordan Louviere & Kenneth Train & Moshe Ben-Akiva & Chandra Bhat & David Brownstone & Trudy Cameron & Richard Carson & J. Deshazo & Denzil Fiebig & William Greene & David Hensher & Donald Waldman, 2005. "Recent Progress on Endogeneity in Choice Modeling," Marketing Letters, Springer, vol. 16(3), pages 255-265, December.
- Deyak, Timothy A. & Smith, V. Kerry, 1978. "Congestion and participation in outdoor recreation: A household production function approach," Journal of Environmental Economics and Management, Elsevier, vol. 5(1), pages 63-80, March.
- Bo Shelby, 1980. "Crowding Models for Backcountry Recreation," Land Economics, University of Wisconsin Press, vol. 56(1), pages 43-55.
- Jensen, Kimberly L. & Clark, Christopher D. & English, Burton C. & Menard, R. Jamey & Skahan, Denise K. & Marra, Adrienne C., 2010. "Willingness to pay for E85 from corn, switchgrass, and wood residues," Energy Economics, Elsevier, vol. 32(6), pages 1253-1262, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lisa Schiff).
If references are entirely missing, you can add them using this form.