Recreation Nonparticipation as Choice Behavior Rather Than Statistical Outcome

Eric English

American Journal of Agricultural Economics, 2008, vol. 90, issue 1, pages 186-196

Abstract: In recreation demand models nonparticipation is usually estimated as the probability mass on zero demand given a positive level of expected demand and a discrete distribution of demand outcomes. Researchers have attempted to improve predictions of nonparticipation by modifying the parameters of the demand distribution. This study departs from previous approaches by explicitly incorporating nonparticipation into the behavioral model. The choice to participate is described by a distribution of preferences combined with a choke price on individual demands to distinguish participants from nonparticipants. The model is found to accurately predict nonparticipation and the size of the user group. Copyright ©2008 American Agricultural Economics Association.

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