Taste Indicators and Heterogeneous Revealed Preferences for Congestion in Recreation Demand
Researchers 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.
|Date of creation:||11 Jun 2008|
|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
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.:
- 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.
- 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.
- Walker, Joan & Ben-Akiva, Moshe, 2002. "Generalized random utility model," Mathematical Social Sciences, Elsevier, vol. 43(3), pages 303-343, July.
- 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.
- 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.
- Axel BÃ¶rsch-Supan & Moshe Ben-Akiva & Kenneth Train & Daniel McFadden, 2002. "Hybrid Choice Models: Progress and Challenges," MEA discussion paper series 02009, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
- 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.
- Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-890, July.
- 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.
- McConnell, K. E., 1988. "Heterogeneous preferences for congestion," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 251-258, September.
- 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, Springer;European Association of Environmental and Resource Economists, vol. 27(4), pages 429-450, April.
- 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 383-391, August.
- 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.
- 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.
- Louviere, Jordan J, 2001. " What If Consumer Experiments Impact Variances as Well as Means? Response Variability as a Behavioral Phenomenon," Journal of Consumer Research, Oxford University Press, vol. 28(3), pages 506-511, December.
- 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.
- 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.
- 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.
- J. Miguel Villas-Boas & Russell S. Winer, 1999. "Endogeneity in Brand Choice Models," Management Science, INFORMS, vol. 45(10), pages 1324-1338, October.
- Bo Shelby, 1980. "Crowding Models for Backcountry Recreation," Land Economics, University of Wisconsin Press, vol. 56(1), pages 43-55. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:cdl:agrebk:qt4rz5z706. See general information about how to correct material in RePEc.
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.