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Validity of open-ended and payment scale approaches to eliciting willingness to pay

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  • Cam Donaldson
  • Ruth Thomas
  • David Torgerson

Abstract

The open-ended and payment scale approaches to eliciting willingness to pay (WTP) valuations are compared. Use of the payment scale led to a higher response rate, a higher rate of completion of the WTP question, higher mean and median WTP values, a stronger association between WTP and ability to pay and a higher R2 in regression analysis of WTP on several independent variables. Taking these results in combination, it can be inferred that the payment scale technique leads to more valid WTP values than use of the open-ended approach.

Suggested Citation

  • Cam Donaldson & Ruth Thomas & David Torgerson, 1997. "Validity of open-ended and payment scale approaches to eliciting willingness to pay," Applied Economics, Taylor & Francis Journals, vol. 29(1), pages 79-84.
    • Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:79-84
    DOI: 10.1080/000368497327425
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    References listed on IDEAS

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