PT  - JOURNAL ARTICLE
AU  - Kei Kabaya
AU  - Koichi Kuriyama
TI  - Discrete and Continuous Preference Heterogeneity in a Kuhn-Tucker Model: Beach Recreational Demand
AID  - 10.3368/wple.97.3.021120-0016R1
DP  - 2021 Aug 01
TA  - Land Economics
PG  - 548--561
VI  - 97
IP  - 3
4099  - http://le.uwpress.org/content/97/3/548.short
4100  - http://le.uwpress.org/content/97/3/548.full
SO  - Land Econ2021 Aug 01; 97
AB  - This study extended an existing Kuhn-Tucker (KT) model to integrate a mixture of discrete and continuous preference heterogeneity to address taste variations at individual and group levels. Specifically, we introduced random parameters into site quality attributes in a latent segmentation KT framework. In an empirical application to beach recreational demand, our proposed model statistically dominated other conventional specifications and revealed heterogeneous preferences for beach quality across and within groups. Our welfare analysis further showed that ignoring either the continuous or discrete component of the mixing distributions might lead to biased welfare estimates as well as opposite policy implications.