Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/17364
Appears in Collections:Economics Working Papers
Title: The Effects of Experience on Preference Uncertainty: Theory and Empirics for Public and Quasi-Public Environmental Goods
Authors: Czajkowski, Mikolaj
Hanley, Nicholas
LaRiviere, Jacob
Contact Email: miq@wne.uw.edu.pl
Citation: Czajkowski M, Hanley N & LaRiviere J (2013) The Effects of Experience on Preference Uncertainty: Theory and Empirics for Public and Quasi-Public Environmental Goods. Stirling Economics Discussion Paper, 2013-11.
Keywords: discrete choice experiment
preference learning
stated preferences
Bayesian updating
generalized multinomial logit
scale
scale variance
JEL Code(s): C51
D83
Q51
H43
Issue Date: Oct-2013
Series/Report no.: Stirling Economics Discussion Paper, 2013-11
Abstract: This paper develop and estimates a model of demand estimation for environmental public goods which allows for consumers to learn about their preferences through consumption experiences. We develop a theoretical model of Bayesian updating, perform comparative statics over the model, and show how the theoretical model can be consistently incorporated into a reduced form econometric model. We then estimate the model using data collected for two environmental goods. We find that the predictions of the theoretical exercise that additional experience makes consumers more certain over their preferences in both mean and variance are supported in each case.
Type: Working or Discussion Paper
URI: http://hdl.handle.net/1893/17364
Affiliation: University of Warsaw
Economics
University of Tennessee

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