Investigating the reliability of a hedonic travel cost model: a Monte Carlo approach

1994 ◽  
Vol 24 (2) ◽  
pp. 358-363 ◽  
Author(s):  
Michael S. Common ◽  
Daniel W. McKenney
Keyword(s):  
Decision Making ◽  
Sensitivity Analysis ◽  
Monte Carlo ◽  
Cost Model ◽  
Monte Carlo Model ◽  
Consumer Surplus ◽  
Travel Cost ◽  
Management Decision ◽  
Travel Cost Model ◽  
Management Decision Making

The reliability of nonmarket welfare estimates has been examined by analysts in a variety of contexts. Much of the focus of previous work has been on individual, rather than aggregate values. This paper examines the reliability of aggregate consumer surplus estimates via a Monte Carlo model. The basic elements of a hedonic travel cost model are represented in a forest management decision-making context. One result is that what would appear as minor errors in visitor estimates between sites has a significant impact on aggregate consumer surplus estimates. The results serve to emphasize that sensitivity analysis is critical when using nonmarket welfare estimates for decision making.

scholarly journals Effects of Ad-hoc Data Truncation and Homogeneous Preferences on Recreational Demand and Values: An Application to the George Washington and Jefferson National Forests

2021 ◽  
pp. 1-15
Author(s):  
Kavita Sardana ◽  
John C. Bergstrom ◽  
J. M. Bowker
Keyword(s):  
Latent Class ◽  
Ad Hoc ◽  
Cost Model ◽  
Consumer Surplus ◽  
Poisson Model ◽  
Travel Cost ◽  
National Forests ◽  
Heterogeneous Preferences ◽  
George Washington ◽  
Travel Cost Model

Abstract We estimate a travel cost model for the George Washington & Jefferson National Forests using an On-Site Latent Class Poisson Model. We show that the constraints of ad-hoc truncation and homogenous preferences significantly impact consumer surplus estimates derived from the on-site travel cost model. By relaxing the constraints, we show that more than one class of visitors with unique preferences exists in the population. The resulting demand functions, price responsive behaviors, and consumer surplus estimates reflect differences across these classes of visitors. With heterogeneous preferences, a group of ‘local residents’ exists with a probability of 8% and, on average take 113 visits.

scholarly journals Testing Significance of Multi-Destination and Multi-Purpose Trip Effects in a Travel Cost Method Demand Model for Whale Watching Trips

2000 ◽  
Vol 29 (2) ◽  
pp. 183-191 ◽  
Author(s):  
John Loomis ◽  
Shizuka Yorizane ◽  
Douglas Larson
Keyword(s):  
Willingness To Pay ◽  
Count Data ◽  
Cost Model ◽  
Consumer Surplus ◽  
Travel Cost ◽  
Travel Cost Method ◽  
Demand Model ◽  
Generalized Model ◽  
Travel Cost Model ◽  
Recreation Site

Inclusion of multi-destination and multi-purpose visitors has an appreciable influence on a standard count data travel cost model derived estimate of willingness to pay but the differences are not statistically significant. We adapt a more general travel cost model (TCM) of Parsons and Wilson (1997) that allows for inclusion of multi-destination visitors as incidental demand to allow estimation of an unbiased measure of single and multi-destination willingness to pay for whale viewing using a single pooled equation. The primary purpose trip values from the standard TCM and simple generalized TCM model are identical at $43 per person per day and neither are significantly different from the $50 day value from a generalized model that distinguishes between joint and incidental trips. The general models avoid underestimation of total recreation site benefits that would result from omitting the consumer surplus of multi-destination visitors.

Navigating the corn maze: Customizing travel cost models to value market segments in heterogeneous industries

2020 ◽  
pp. 135481662097696
Author(s):  
Anders Van Sandt ◽  
Dawn Thilmany McFadden
Keyword(s):  
Rural Communities ◽  
Cost Model ◽  
Consumer Surplus ◽  
The United States ◽  
Travel Cost ◽  
Cost Models ◽  
Travel Cost Model ◽  
Traveler Heterogeneity ◽  
To Come ◽  
The Impact

Agritourism is an example of a growing and important industry to rural communities in the United States seeking to leverage interest in their natural resource, agricultural, and other heritage assets. We use survey data and a flexible travel cost model to estimate the part-worth consumer surplus (CS) values of Western US agritourism trips for different regions, activities, and traveler types. Given the rural nature of agritourism may require interested travelers to come from long distances, we also pay particular attention to and compare travelers’ marginal and cumulative travel costs to evaluate the impact on CS estimates. Results indicate that trip and traveler heterogeneity, if unaccounted for, may lead to misinformed policy and management decisions.

A Hybrid Individual—Zonal Travel Cost Model for Estimating the Consumer Surplus of Golfing in Colorado

2008 ◽  
Vol 10 (2) ◽  
pp. 155-167 ◽  
Author(s):  
John Loomis ◽  
Omer Tadjion ◽  
Philip Watson ◽  
Josh Wilson ◽  
Stephen Davies ◽  
...  
Keyword(s):  
Cost Model ◽  
Consumer Surplus ◽  
Travel Cost ◽  
Hybrid Individual ◽  
Travel Cost Model

scholarly journals Individual single-site travel cost model for Czech paradise geopark

2013 ◽  
Vol 61 (7) ◽  
pp. 2851-2858 ◽  
Author(s):  
Jan Špaček ◽  
Michaela Antoušková
Keyword(s):  
Cost Model ◽  
Consumer Surplus ◽  
Travel Cost ◽  
Single Site ◽  
Family Status ◽  
The Czech Republic ◽  
Recreational Value ◽  
Travel Cost Model ◽  
The Individual ◽  
Area Data

Geotourism is a new phenomenon, which has emerged in the tourism literature during the past two decades, and whose meaning suffered from global census. Geotourism is still a new discipline and relatively little has been written about its demand side, demonstrated by a lack of studies in the literature This article studies the recreational value of geotourism areas, and focuses on the first geopark in the Czech Republic, namely the Czech Paradise Geopark. To assess the recreational value the travel cost method is applied, specifically the individual travel cost model. The necessary research data was gathered through intensive tourist surveys conducted in the study area. Data gathered in the respondents’ survey served to determine the consumer surplus as a measure of recreational value and to develop the single site travel cost model. The dependent variable in the conducted model is the number of visits in the area and among the independent variables, studied age, education, travel cost, family status, economic activity and income. The results were subsequently compared to findings in the available literature, research works and case studies.

scholarly journals Economic valuation of sportfishing in the surroundings of Cerralvo Island, Baja California Sur, Mexico using the travel cost method

2020 ◽  
Vol 48 (3) ◽  
pp. 370-380
Author(s):  
Luis C. Almendarez-Hernández ◽  
Marian Rodríguez-Fuentes ◽  
Francisco J. Vergara-Solana ◽  
Marco A. Almendarez-Hernández
Keyword(s):  
Baja California ◽  
Economic Valuation ◽  
Consumer Surplus ◽  
Travel Cost ◽  
Management Decision ◽  
Travel Cost Method ◽  
Baja California Sur ◽  
Management Decision Making ◽  
Recreation Service ◽  
Surrounding Areas

Los Cabos, Baja California Sur, Mexico, is a reference for sportfishing (SF). In this vein, a significant number of artisanal fishers from the communities surrounding Cerralvo Island-located 215 km from Los Cabos-have opted to offer SF as a tourist service in recent years. The SF has generated unevaluated economic activity in the area. Thus, stakeholders need to know this value to improve their management decision making. Therefore, this research aimed to make a valuation of the recreation service and factors that influence the demand of SF in Cerralvo Island and surrounding areas using the indirect travel cost method (TCM). For this purpose, 275 surveys were performed at the boat ramps in nearby towns. The estimated consumer surplus (EC) was USD 1,886 per visitor. Approximately 28,864 annual recreational sportfishing trips were recorded, so the total annual surplus was USD 54,437,504. The EC outperformed other national sites and was ≈140% higher than the highest valuation made for Los Cabos, which presumably derived from the differences in costs (v. gr., fishing charter, lodging). These values suggest the opportunity for the development of this activity in the study area.

Centralization and Effectiveness of Reward Management in Multinational Enterprises

2018 ◽  
Vol 17 (2) ◽  
pp. 55-65 ◽  
Author(s):  
Michael Tekieli ◽  
Marion Festing ◽  
Xavier Baeten
Keyword(s):  
Decision Making ◽  
Social Identity Theory ◽  
Multinational Enterprises ◽  
Role Identity ◽  
Management Decision ◽  
Role Identities ◽  
Management Decision Making ◽  
New Perspective ◽  
Subsidiary Managers ◽  
The Relationship

Abstract. Based on responses from 158 reward managers located at the headquarters or subsidiaries of multinational enterprises, the present study examines the relationship between the centralization of reward management decision making and its perceived effectiveness in multinational enterprises. Our results show that headquarters managers perceive a centralized approach as being more effective, while for subsidiary managers this relationship is moderated by the manager’s role identity. Referring to social identity theory, the present study enriches the standardization versus localization debate through a new perspective focusing on psychological processes, thereby indicating the importance of in-group favoritism in headquarters and the influence of subsidiary managers’ role identities on reward management decision making.

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