Abstract
In their daily lives, consumers choose discretely–what model of car to buy, which beach to visit, whether to use public transportation, and so on. On the surface, the neoclassical model of preferences and demand appears ill-suited to analyzing such discrete choices or to providing a framework for welfare analysis. Nevertheless, there is a well developed and useful literature on econometrics and welfare measurement in this choice setting. The heart of this literature is the McFadden (1974) random utility model, which found its initial applications in transportation. Hanemann (1978) was the first to develop and apply this approach to valuing environmental and natural resources.
Keywords
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2007 Springer
About this chapter
Cite this chapter
Bockstael, N.E., McConnell, K.E. (2007). Measuring Welfare in Discrete Choice Models. In: Environmental and Resource Valuation with Revealed Preferences. The Economics of Non-Market Goods and Resources, vol 7. Springer, Dordrecht. https://doi.org/10.1007/978-1-4020-5318-4_5
Download citation
DOI: https://doi.org/10.1007/978-1-4020-5318-4_5
Publisher Name: Springer, Dordrecht
Print ISBN: 978-0-7923-6501-3
Online ISBN: 978-1-4020-5318-4
eBook Packages: Business and EconomicsEconomics and Finance (R0)