ABSTRACT
Table 1. Mean Willingness to Pay for a 20% Reduction in Air Pollution (1998 dollars}
Conclusions
References
1.Introduction
Amongthedifferentmodelingapproachesforestimatingpreferencesfor housingattributes,theonesthathavereceivedconsiderabletheoreticaland
empirical attention are Rosen's (197 4) two-step standard hedonic model, Ellickson's (1981) random bidding model, and McFadden's (1974) random utility model (RUM). Each of these models can be used to generate benefit estimates for changes in environmental amenities such as clean air. However, since the models are based on different assumptions despite their common reliance on the utility maximization hypothesis, they are likely to lead to different benefit estimates. The purpose of the present paper is to explore these differences.
