|Appears in Collections:
|Economics Working Papers
|The Effects of Experience on Preference Uncertainty: Theory and Empirics for Public and Quasi-Public Environmental Goods
|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.
|discrete choice experiment
generalized multinomial logit
|C51: Model Construction and Estimation
D83: Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Q51: Valuation of Environmental Effects
H43: Project Evaluation; Social Discount Rate
|Stirling Economics Discussion Paper, 2013-11
|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.
|University of Warsaw
University of Tennessee
|Fulltext - Accepted Version
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