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A Lancasterian Approach for Specifying Derived Demands for Recreational Activities

Accurate estimations of recreational demand schedules are important for projecting attendance at new facilities. Projecting future demand levels and calculating social benefits of additional facilities can be biased, however, if an analyst does not consider the influence of recreational opportunities. The Lancasterian theory of household behavior provides a framework for exploring implications of the influence of such recreational opportunities on demand estimations, projections, and consumer surplus measures. A case study of boating demand is presented to empirically investigate this framework.