BENEFIT ESTIMATES 



Net economic values for Montana deer hunting were derived 

 from the first stage demand functions shown in Equation 2. The 

 following section presents these estimates. 



Net Economic Values for Montan a Deer Hunting 



As explained above, net economic values were derived from 

 the first stage demand curves by direct integration. The upper 

 limit of integration in the following tables for any given 

 observation is the furthest observed distance traveled in the 

 sample, plus the observed distance. This corresponds to facing 

 each hunter with a hypothetical site fee no higher than the 

 maximum travel cost observed for the opportunity to hunt a 

 particular area. 



Consumer surplus per trip, based on Equation 2, is shown in 

 Tables 3 and 4. The site average per trip, based on the standard 

 cost parameter (13 cents per mile), and using the actual 

 intercept term (Gum and Martin Method), is $38.22, or $108.00 

 based on the reported trip costs (37 cents per mile). The range 

 across sites for the latter is considerable. The average values 

 per day, are $20.88 and $54.94, for the standard and reported 

 cost estimates, respectively. 



The conventional method, used to d'^rive the tables in 

 Appendix C, uses a predicted intercept (or predicted trips) as 

 the starting point for integrating the area under the demand 

 curve. As may be recalled, trips are overpredicted, compared to 

 actual, for most sites. It can be shown that site benefits are 



23 



