Valuing Bundled Attributes: A Latent Characteristics Approach

Linwood H. Pendleton and J Shonkwiler

Land Economics, 2001, vol. 77, issue 1, 118-129

Abstract: Lancaster wrote that attributes of goods may combine to produce characteristics that are the primary units of consumption (1966). Often, the attributes of goods are bundled and cannot be separated. We show that if attributes are technically bundled then valuation analyses that treat these attributes as independent will be wrong. We show that a latent characteristics approach improves upon other methods by incorporating more information about attributes than standard methods and by directly modeling the linkages among attributes. For the case of wilderness hiking, the latent approach provides a statistically better model of site choice than other standard methods.

JEL-codes: Q20 Q26 (search for similar items in EconPapers)
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://le.uwpress.org/cgi/reprint/77/1/118
A subscription is required to access pdf files. Pay per article is available.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:77:y:2001:i:1:p:118-129

Access Statistics for this article

More articles in Land Economics from University of Wisconsin Press
Bibliographic data for series maintained by ().