2002 World Congress of Environmental and Resource Economists

The notion that consumers create mental accounts (budget categories) for decision-making has gained currency in the behavioral economics and marketing literatures. The consequence of such mental accounting for the modeling of consumer behavior is profound. Of particular interest here is that a dynamic, forward-looking model is required because presumably the consumer is aware of the temporal aspects of allocating the account. In this paper we use data on the trip behavior of Lake Michigan anglers in 1996 and 1997 to investigate the possibility that recreational angling decisions are constrained by a seasonal trip account (budget). Both welfare estimates and forecasting results for a structural dynamic random utility model are compared to those for several static models.



	Paper Title:	'Mental Accounts' And Their Consequences For Realistic Modeling Of Recreation Behavior
	Presenting Author:	Bill Provencher (University of Wisconsin)
	Coauthor 1:	Richard C Bishop
	Coauthor 2:
	Coauthor 3:
	Abstract:	The notion that consumers create mental accounts (budget categories) for decision-making has gained currency in the behavioral economics and marketing literatures. The consequence of such mental accounting for the modeling of consumer behavior is profound. Of particular interest here is that a dynamic, forward-looking model is required because presumably the consumer is aware of the temporal aspects of allocating the account. In this paper we use data on the trip behavior of Lake Michigan anglers in 1996 and 1997 to investigate the possibility that recreational angling decisions are constrained by a seasonal trip account (budget). Both welfare estimates and forecasting results for a structural dynamic random utility model are compared to those for several static models.
	Link to paper:	Not available

	Session / Day / Time	2E / Monday / 10:15 - 11:45 am

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