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Payment Certainty in Discrete Choice Contingent Valuation Responses: Results from a Field Validity Test

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Author Info
Christian A. Vossler () (Department of Applied Economics and Management, Cornell University)
Robert G. Ethier () (ISO-New England, Holyoke, MA)
Gregory L. Poe () (Department of Applied Economics and Management, Cornell University)
Michael P. Welsh () (Christensen Associates)

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Abstract

Two methods for calibrating discrete choice contingent valuation responses—the dichotomous choice with follow-up certainty question method of and the multiple-bounded method of —are evaluated using data from a field validity comparison of hypothetical and actual participation decisions in a green electricity pricing program. Both calibration methods can produce hypothetical participation levels that closely correspond with actual program participation rates. However, the two methods demonstrate procedural variance as they yield significantly different underlying distributions of willingness to pay.

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Publisher Info
Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 69 (2003)
Issue (Month): 4 (April)
Pages: 886-902
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Handle: RePEc:sej:ancoec:v:69:4:y:2003:p:886-902

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  2. Christian Vossler & Michael McKee, 2006. "Induced-Value Tests of Contingent Valuation Elicitation Mechanisms," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 35(2), pages 137-168, October. [Downloadable!] (restricted)
  3. Ana Bedate & Luis Herrero & José Sanz, 2009. "Economic valuation of a contemporary art museum: correction of hypothetical bias using a certainty question," Journal of Cultural Economics, Springer, vol. 33(3), pages 185-199, August. [Downloadable!] (restricted)
  4. Glenn Blomquist & Karen Blumenschein & Magnus Johannesson, 2009. "Eliciting Willingness to Pay without Bias using Follow-up Certainty Statements: Comparisons between Probably/Definitely and a 10-point Certainty Scale," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(4), pages 473-502, August. [Downloadable!] (restricted)
  5. Sund, Björn, 2009. "Certainty calibration in contingent valuation - exploring the within-difference between dichotomous choice and open-ended answers as a certainty measure," Working Papers 2009:1, Örebro University, Swedish Business School. [Downloadable!]
  6. John C. Whitehead & Todd L. Cherry, 2004. "Mitigating the Hypothetical Bias of Willingness to Pay: A Comparison of Ex-Ante and Ex-Post Approaches," Working Papers 04-21, Department of Economics, Appalachian State University. [Downloadable!]
  7. Steven B. Caudill & Peter A. Groothuis & John C. Whitehead, 2006. "Testing for Hypothetical Bias in Contingent Valuation Using a Latent Choice Multinomial Logit Model," Working Papers 06-09, Department of Economics, Appalachian State University. [Downloadable!]
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