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An Improved Method for Calibrating Purchase Intentions in Stated Preference Demand Models

Published online by Cambridge University Press:  26 January 2015

Stephen Davies  and
John Loomis
Stephen Davies
Affiliation:
Department of Agricultural and Resource Economics, Colorado State University, Fort Collins, CO
John Loomis
Affiliation:
Department of Agricultural and Resource Economics, Colorado State University, Fort Collins, CO
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Abstract

The Orbit demand model allows the magnitude of the calibration to stated purchase intentions to vary based on the magnitude of the stated quantities. Using an empirical example of stated trips, we find that the extent of calibration varies substantially with less correction needed at small stated trips (-25%) but larger corrections at higher quantities of stated visits (-48%). We extend the Orbit model to calculate consumer surplus per stated trip of $26. Combining the calibrations in stated trips and value per trip, the Orbit model provides estimates of annual benefits from 60% to 111% less than the count data model.

Keywords

hypothetical biasOrbitordered probit modeltravel cost modelrecreationstated preferenceD12H44Q26Q51
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 42 , Issue 4 , November 2010 , pp. 679 - 693
Copyright
Copyright © Southern Agricultural Economics Association 2010

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