Discrete and Continuous Preference Heterogeneity in a Kuhn-Tucker Model: Beach Recreational Demand
扩展了库恩-塔克模型，融合离散和连续偏好异质性，用于分析海滩休闲需求，发现忽略任一种异质性会导致福利估计偏差和政策结论相反。
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.