Abstract
Caulkins, Bishop, and Bouwes (CBB) (1985) raise an important issue concerning the conventional presumption of positive bias in consumer surplus when alternative sites are ignored in the travel cost method treatment of site value (Dwyer, Kelly, and Bowes 1977). They analyze a significant geographic dispersion phenomenon which can cause either negative or positive bias in travel cost model (TCM) estimates of site value when travel costs to alternative sites are omitted.' However, the derivation of specification bias in the TCM which they provide is incomplete and could lead to generalizations which are erroneous. CBB use the well-known specification bias analysis to discuss the possible effects of ignoring alternative recreation sites in the TCM demand analysis. Given the estimated linear regression equation,
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