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This paper investigates preference heterogeneity of wine consumers by using latent class models based on attitudinal questions. Such responses turn out to be an important source of additional information when the goal is to identify different groups of people with a similar wine preference structure. We assume that preferences are latent and the responses to attitudinal questions are the visible effect of this latent heterogeneity. We find evidence of 4 different classes of respondents with similar response patterns. We focus on preferences for a well-known wine, the Prosecco, and sample the population in the area of production. For each preference-class we estimate a class-specific WTP equation for this wine, so as to estimate the class responsiveness of WTP to various determinants. Estimates for a 4-class model are discussed in detail to illustrate the potential of this approach in characterizing the preferences of local consumers for the two most common certifications of origin.

This paper investigates preferences for various environment-friendly production system for carrots using discretechoice multi-attribute stated-preference data amongst buyers and explore the effect of collective reputations from growers of an Alpine valley known to be completely dedicated to organic production. Results show that buyers distinctly recognize only organic production as a production system different from the conventional one, and there is some evidence of recognition of collective reputation. As well as for marginal utility of income, substantial unobserved heterogeneity is found for many skin imperfections, origin from the organic Alpine valley and the organic production methods. The implied sample distributions of WTP for each of these random attributes are then compared.

Effective public expenditure currently dominates the management focus of many protected areas. This calls for explicit modeling of constraints and motivations that, respectively, obstruct and stimulate visits to selected outdoor destinations. Choice set formation is the result of screening and/or inclusion of specific sites (alternatives) to form the set of sites considered in real choices. Evidence shows that the omission of a structural representation of choice set formation is harmful to econometric inference. Yet, the literature has largely ignored the underlying behavioral phenomenon. We show, using a discrete choice experiment involving selection among seven recreational sites in an Italian national park, that choice set formation is behaviorally relevant, even after controlling for preference discrimination. Motivations (why visit?) are important determinants of preliminary site screening for choice set inclusion, as well as site selection, justifying the additional value of such modeling extension. Refereed/Peer-reviewed