An efficiency approach to choice set formation: theory and application to recreational destination choice

    Authors

    D. Scrogin; R. Hofler; K. Boyle;J. W. Milon

    Comments

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    Abbreviated Journal Title

    Appl. Econ.

    Keywords

    RANDOM-UTILITY-MODELS; SITE CHOICE; DEMAND; DEFINITION; QUALITY; Economics

    Abstract

    An unresolved debate in behavioural choice research surrounds specifying individual choice sets. To overcome the limitations of deterministic and probabilistic approaches in a framework consistent with individual optimizing behaviour, this study develops an efficient frontiers approach to the choice set problem in the context of revealed preference destination choice. Stochastic frontier models relating costly inputs to utility generating outputs are estimated to measure the efficiency of sites; choice sets are then formed by retaining sites that exceed alternative efficiency thresholds. Choice set composition, site choice efficiency and probability of selection and consumer surplus are evaluated in the case of fishery site choice in Maine.

    Journal Title

    Applied Economics

    Volume

    42

    Issue/Number

    3

    Publication Date

    1-1-2010

    Document Type

    Article

    Language

    English

    First Page

    333

    Last Page

    350

    WOS Identifier

    WOS:000273869700007

    ISSN

    0003-6846

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