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From evidence to calibration for starting point bias: willingness to pay for treated mosquito nets in Gujarat, India

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  • M. R. Bhatia

Abstract

This study uses a bidding format to assess households' willingness to pay (WTP) for treated mosquito nets (TMNs). It tests for starting point bias by allocating respondents randomly to three different starting bids (Rs 50, Rs 75 and Rs 100) and following this response with one further closed bid offer and a final open-ended WTP question. There is a clear presence of starting point bias. By undertaking a simulated market experiment (SME), this study attempts to measure the magnitude and direction of the bias so that the necessary calibration factor can be calculated with which to adjust the mean willingness to pay value. It was observed that the true mean WTP adjusted for starting point bias (Rs 56.26) is not very different from the unadjusted mean WTP of Rs 57.38. It is concluded that the presence of starting point bias, even in carefully designed WTP studies using a bidding format, cannot be ruled out. However, the existence of starting point bias itself does not reflect the magnitude of the problem. It is recommended that future WTP studies using a bidding format not only look for starting point bias but also attempt to measure its magnitude.

Suggested Citation

  • M. R. Bhatia, 2005. "From evidence to calibration for starting point bias: willingness to pay for treated mosquito nets in Gujarat, India," Applied Economics, Taylor & Francis Journals, vol. 37(1), pages 1-7.
    • Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:1-7
    DOI: 10.1080/0003684042000291317
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    2. Tai-Hsin Huang & Ying-Ting Liao & Li-Chih Chiang, 2010. "An examination on the cost efficiency of the banking industry under multiple output prices' uncertainty," Applied Economics, Taylor & Francis Journals, vol. 42(9), pages 1169-1182.
    3. Laura Ternent & Aki Tsuchiya, 2013. "A Note on the Expected Biases in Conventional Iterative Health State Valuation Protocols," Medical Decision Making, , vol. 33(4), pages 544-546, May.
    4. Paul McNamee & Laura Ternent & Adjima Gbangou & David Newlands, 2010. "A game of two halves? Incentive incompatibility, starting point bias and the bidding game contingent valuation method," Health Economics, John Wiley & Sons, Ltd., vol. 19(1), pages 75-87, January.
    5. Pedersen, Line Bjørnskov & Gyrd-Hansen, Dorte & Kjær, Trine, 2011. "The influence of information and private versus public provision on preferences for screening for prostate cancer: A willingness-to-pay study," Health Policy, Elsevier, vol. 101(3), pages 277-289, August.
    6. Laura Ternent & Paul McNamee & David Newlands & Danielle Belemsaga & Adjima Gbangou & Suzanne Cross, 2010. "Willingness to pay for maternal health outcomes," Applied Health Economics and Health Policy, Springer, vol. 8(2), pages 99-109, March.
    7. M. Trapero‐Bertran & H. Mistry & J. Shen & J. Fox‐Rushby, 2013. "A Systematic Review And Meta‐Analysis Of Willingness‐To‐Pay Values: The Case Of Malaria Control Interventions," Health Economics, John Wiley & Sons, Ltd., vol. 22(4), pages 428-450, April.

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