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Modifying willingness to pay estimates where respondents mis-report their preferences

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Author Info
K. Balcombe
A. Bailey
A. Chalak
I. Fraser

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Abstract

The likelihood for the Logit model is modified, so as to take account of uncertainty associated with mis-reporting in stated preference experiments estimating willingness to pay (WTP). Monte Carlo results demonstrate the bias imparted to estimates where there is mis-reporting. The approach is applied to a data set examining consumer preferences for food produced employing a nonpesticide technology. Our modified approach leads to WTP that are substantially downwardly revised.

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File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/13504850600706123&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 15 (2008)
Issue (Month): 5 ()
Pages: 327-330
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Handle: RePEc:taf:apeclt:v:15:y:2008:i:5:p:327-330

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