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- Title
THE CHOICE OF JOURNEY DESTINATION: A THEORETICAL AND EMPIRICAL ANALYSIS.
- Authors
Rugg, Donald
- Abstract
The theoretical framework developed in this paper analyzes the consumer's choice of journey destination. In order to avoid the difficulties inherent in orthodox price theory, the model is based upon the Lancasterian notion that consumers derive utility from characteristics which are produced by commodities. The model developed includes several constructs which have been ignored by most travel demand economists, namely, the inclusion of a time constraint; the modification of the budget constraint to include the transportation costs between alternate destinations; and the modification of the time constraint to include the time costs incurred when traveling between alternate destinations. The model was tested empirically by estimating thirteen demand functions for international air passenger travel suggested by the constraint variables and destinational characteristics defined within the structure of the model. The results generated from two sets of sample data strongly uphold the hypothesis that the model is valid representation of the consumer's choice of journey destination since every regression estimated is shown to be highly significant and to explain a large percentage of the variation in passenger travel flows.
- Subjects
TRAVEL; VOYAGES &; travels; CONSUMER preferences; TOURISM; MICROECONOMICS; MONITORIAL system of education; ECONOMIC demand; AIRLINE industry
- Publication
Review of Economics & Statistics, 1973, Vol 55, Issue 1, p64
- ISSN
0034-6535
- Publication type
Article
- DOI
10.2307/1927995