Gr. Parsons et Ab. Hauber, SPATIAL BOUNDARIES AND CHOICE SET DEFINITION IN A RANDOM UTILITY MODEL OF RECREATION DEMAND, Land economics, 74(1), 1998, pp. 32-48
We are concerned with the definition of choice set used in Random Util
ity Models of recreation demand. In particular, we are concerned with
the spatial boundaries used to define choice sets. In this paper, usin
g a model of day-trip fishing in Maine, we examine the sensitivity of
parameter and welfare estimates to changes in the spatial boundary. We
find that there exists some threshold distance beyond which adding mo
re sites to the choice set has negligible effects on the estimation re
sults.