Lottery-rationed public access under alternative tariff arrangements: changes in quality, quantity, and expected utility

    Authors

    D. Scrogin

    Comments

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    Abbreviated Journal Title

    J.Environ.Econ.Manage.

    Keywords

    access; lotteries; quotas; tariffs; recreation demand; nested; multinomial logit; MODELS; WELFARE; CONGESTION; RECREATION; DEMAND; Business; Economics; Environmental Studies

    Abstract

    A recent phenomenon is the emergence of quotas restricting individual access to public resources. As regulators commonly ration access opportunities by lottery, this paper extends the traditional, open access destination choice framework for non-market demand and welfare analysis. Conceptual results for one-and two-part tariff lotteries indicate that individuals may sustain welfare losses from improvements in quality or increases in the quota if aggregate demand is sufficiently responsive relative to individual utility. Nested random expected utility models (REUMs) are estimated with a panel dataset of individual choices of lottery-rationed harvest rights for wild game. Empirical results indicate that the types and timing of tariff payments affect participation, choices over rationed and open access alternatives and the benefits derived from changes in the quality and quantity of the lottery-rationed access opportunities. (c) 2004 Elsevier Inc. All rights reserved.

    Journal Title

    Journal of Environmental Economics and Management

    Volume

    50

    Issue/Number

    1

    Publication Date

    1-1-2005

    Document Type

    Article

    Language

    English

    First Page

    189

    Last Page

    211

    WOS Identifier

    WOS:000230324500010

    ISSN

    0095-0696

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