Nested logit has become common in estimating random utility models of recreation demand. Because welfare analysis is often the objective of estimating these models, it seems natural to ask, what effect does the choice of nesting structure have on the welfare estimates generated by these models?...

We are concerned with the definition of choice set used in Random Utility Models of recreation demand. In particular, we are concerned with the spatial boundaries used to define choice sets. In this paper, using a model of day-trip fishing in Maine, we examine the sensitivity of parameter and...

Nested logit has become common in estimating random utility models of recreation demand. Because welfare analysis is often the objective of estimating these models, it seems natural to ask, what effect does the choice of nesting structure have on the welfare estimates generated by these models?...