Using Continuous and Finite Mixture Models to Account for Preference Heterogeneity in a group of Outdoor Recreationalists

Multi-attribute revealed preference data are used to investigate the heterogeneity of tastes in a sample of kayakers in relation to a panel of eleven whitewater sites in Ireland. The paper focuses on a comparison of the analysis of preference heterogeneity using a random parameter logit model and a latent class model. We assess and contrast the evidence for the presence of a finite number of 2, 3, 4 and 5 latent preference groups (classes) and contrast these with the presence of a continuous distribution of parameter estimates using the random parameter logit model. Welfare estimates associated with changes in the attributes of particular whitewater sites are also presented and are found to vary considerably depending on the approach taken.