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Spatial Boundaries and Choice Set Definition in a Random Utility Model of Recreation Demand

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  • George R. Parsons
  • A. Brett Hauber

Abstract

We are concerned with the definition of choice set used in Random Utility Models of recreation demand. In particular, we are concerned with the spatial boundaries used to define choice sets. In this paper, using a model of day-trip fishing in Maine, we examine the sensitivity of parameter and welfare estimates to changes in the spatial boundary. We find that there exists some threshold distance beyond which adding more sites to the choice set has negligible effects on the estimation results.

Suggested Citation

  • George R. Parsons & A. Brett Hauber, 1998. "Spatial Boundaries and Choice Set Definition in a Random Utility Model of Recreation Demand," Land Economics, University of Wisconsin Press, vol. 74(1), pages 32-48.
  • Handle: RePEc:uwp:landec:v:74:y:1998:i:1:p:32-48
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    JEL classification:

    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources

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