An Empirical Undergraduate Introduction to Estimating Consumer Preferences Using Ride Choices at Disneyland

Abstract

This paper describes a simple and interesting method to introduce and teach undergraduate students about preference estimation using random utility models. The example centers around estimating preferences over rides at Disneyland theme parks and uses actual stated-preference survey data. The lesson is designed to be self-contained in a single 90 minute lecture. Given the strong background that many undergraduate economic students have with consumer choice theory, introducing preference estimation as a real-world application into econometrics curriculum can be an enriching experience.