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Dynamic Random Utility Modeling: A Monte Carlo Analysis
Author(s) -
Hicks Robert L.,
Schnier Kurt E.
Publication year - 2006
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.1467-8276.2006.00900.x
Subject(s) - monte carlo method , estimator , computer science , variety (cybernetics) , econometrics , trajectory , mathematical optimization , economics , mathematics , statistics , physics , astronomy , artificial intelligence
Applied studies of commercial fishing have largely ignored the intertemporal aspects of repeated site choices. For many fisheries, fishermen might choose a dynamically optimal cruise trajectory rather than myopic day‐to‐day strategies and a model that ignores these considerations will likely lead to biased parameter estimates and poor policy guidance. A dynamic random utility model is developed that utilizes the same information as static site‐choice models but is entrenched in the principles of dynamic optimization. Using Monte Carlo analysis, we evaluate the performance of this estimator as compared to the static model for a variety of simulated fishery types.