Title

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

Authors

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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