EconPapers    
Economics at your fingertips  
 

Taste Indicators and Heterogeneous Revealed Preferences for Congestion in Recreation Demand

Felipe Vásquez Lavín and Michael Hanemann ()

Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series from Department of Agricultural & Resource Economics, UC Berkeley

Abstract: 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 bene…ts of using taste indicators to describe heterogeneous preferences for attributes describing alternatives of a choice set.

Keywords: mixed logic framework; recreation demand; research (search for similar items in EconPapers)
Date: 2008-06-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.escholarship.org/uc/item/4rz5z706.pdf;origin=repeccitec (application/pdf)

Related works:
Working Paper: Taste Indicators and Heterogeneous Revealed Preferences for Congestion in Recreation Demand (2008) Downloads
Working Paper: Taste Indicators and Heterogeneous Revealed Preferences for Congestion in Recreation Demand (2008) Downloads
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:cdl:agrebk:qt4rz5z706

Access Statistics for this paper

More papers in Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series from Department of Agricultural & Resource Economics, UC Berkeley Contact information at EDIRC.
Bibliographic data for series maintained by Lisa Schiff ().

 
Page updated 2024-06-28
Handle: RePEc:cdl:agrebk:qt4rz5z706