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Unformatted text preview: 02:21 Parks otelling Travel Cost method: estimate value of a park by summing up consumer H surplus Si
Picture 1 Si= number of visitsi (max cost – travel costi) Demand curve creates right triangle, surplus is right triangle on top of trapezoid of demand Hotelling method only measures the consumption value of a park: Some parks may be conservation sites that people appreciate but never visit: there may be extra value to the parks that a regulator would want to consider beyond the value that one would infer from visits. 02:21 02:21 ...
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- Economics, Right triangle, travel cost method, demand Hotelling method