INVESTIGATING PREFERENCE HETEROGENEITY IN A REPEATED DISCRETE-CHOICE RECREATION DEMAND MODEL OF ATLANTIC SALMON FISHING
Estimating a demand system under the assumption that preferences are homogeneous may lead to biased estimates of parameters for any specific individual and significantly different expected consumer surplus estimates. This paper investigates several different parametric methods to incorporate heterog...
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ftagecon:oai:ageconsearch.umn.edu:28168 2023-05-15T15:31:19+02:00 INVESTIGATING PREFERENCE HETEROGENEITY IN A REPEATED DISCRETE-CHOICE RECREATION DEMAND MODEL OF ATLANTIC SALMON FISHING Breffle, William S. Morey, Edward R. 2000 20 application/pdf http://purl.umn.edu/28168 English en eng AgEcon Search Marine Resource Economics>Volume 15, Number 1, 2000 15080 http://purl.umn.edu/28168 Resource /Energy Economics and Policy Journal Article 2000 ftagecon 2012-09-12T16:24:39Z Estimating a demand system under the assumption that preferences are homogeneous may lead to biased estimates of parameters for any specific individual and significantly different expected consumer surplus estimates. This paper investigates several different parametric methods to incorporate heterogeneity in the context of a repeated discrete-choice model. The first is the classic method of assuming utility to be a function of individual characteristics. Second, a random parameters method is proposed, where preference parameters have some known distribution. Random parameters logit causes the random components to be correlated across choice occasions and, in a sense, eliminates IIA. Simulation noise is discussed. Finally, methods are proposed to relax the assumption that the unobserved stochastic component of utility is identically distributed across individuals. For example, randomization of the logit scale, which is a new method, allows noise levels to vary across individuals without the added burden of explaining the source using covariates. The application is to Atlantic salmon fishing, and expected compensating variations and changes in trip patterns are compared across the models for three policy-relevant changes in fishing conditions at the Penobscot River, the best salmon fishing site in Maine. Article in Journal/Newspaper Atlantic salmon AgEcon Search - Research in Agricultural & Applied Economics |
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Open Polar |
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AgEcon Search - Research in Agricultural & Applied Economics |
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ftagecon |
language |
English |
topic |
Resource /Energy Economics and Policy |
spellingShingle |
Resource /Energy Economics and Policy Breffle, William S. Morey, Edward R. INVESTIGATING PREFERENCE HETEROGENEITY IN A REPEATED DISCRETE-CHOICE RECREATION DEMAND MODEL OF ATLANTIC SALMON FISHING |
topic_facet |
Resource /Energy Economics and Policy |
description |
Estimating a demand system under the assumption that preferences are homogeneous may lead to biased estimates of parameters for any specific individual and significantly different expected consumer surplus estimates. This paper investigates several different parametric methods to incorporate heterogeneity in the context of a repeated discrete-choice model. The first is the classic method of assuming utility to be a function of individual characteristics. Second, a random parameters method is proposed, where preference parameters have some known distribution. Random parameters logit causes the random components to be correlated across choice occasions and, in a sense, eliminates IIA. Simulation noise is discussed. Finally, methods are proposed to relax the assumption that the unobserved stochastic component of utility is identically distributed across individuals. For example, randomization of the logit scale, which is a new method, allows noise levels to vary across individuals without the added burden of explaining the source using covariates. The application is to Atlantic salmon fishing, and expected compensating variations and changes in trip patterns are compared across the models for three policy-relevant changes in fishing conditions at the Penobscot River, the best salmon fishing site in Maine. |
format |
Article in Journal/Newspaper |
author |
Breffle, William S. Morey, Edward R. |
author_facet |
Breffle, William S. Morey, Edward R. |
author_sort |
Breffle, William S. |
title |
INVESTIGATING PREFERENCE HETEROGENEITY IN A REPEATED DISCRETE-CHOICE RECREATION DEMAND MODEL OF ATLANTIC SALMON FISHING |
title_short |
INVESTIGATING PREFERENCE HETEROGENEITY IN A REPEATED DISCRETE-CHOICE RECREATION DEMAND MODEL OF ATLANTIC SALMON FISHING |
title_full |
INVESTIGATING PREFERENCE HETEROGENEITY IN A REPEATED DISCRETE-CHOICE RECREATION DEMAND MODEL OF ATLANTIC SALMON FISHING |
title_fullStr |
INVESTIGATING PREFERENCE HETEROGENEITY IN A REPEATED DISCRETE-CHOICE RECREATION DEMAND MODEL OF ATLANTIC SALMON FISHING |
title_full_unstemmed |
INVESTIGATING PREFERENCE HETEROGENEITY IN A REPEATED DISCRETE-CHOICE RECREATION DEMAND MODEL OF ATLANTIC SALMON FISHING |
title_sort |
investigating preference heterogeneity in a repeated discrete-choice recreation demand model of atlantic salmon fishing |
publisher |
AgEcon Search |
publishDate |
2000 |
url |
http://purl.umn.edu/28168 |
genre |
Atlantic salmon |
genre_facet |
Atlantic salmon |
op_relation |
Marine Resource Economics>Volume 15, Number 1, 2000 15080 http://purl.umn.edu/28168 |
_version_ |
1766361806988640256 |