IDEAS home Printed from https://ideas.repec.org/p/ags/wisagr/12642.html
   My bibliography  Save this paper

Experience, Expectations and Hindsight: Evidence of a Cognitive Wedge in Stated Preference Retrospectives

Author

Listed:
  • Bennett, Michael
  • Provencher, Bill
  • Bishop, Richard C.

Abstract

This paper combines fishing trip decisions - made before observing trip outcomes - with responses to set of double-bounded dichotomous choice CV questions regarding the outcome of the trip, to explore cognitive elements of choice and their implications for decision modeling and welfare analysis. Extending the approach taken by McConnell et al. (1999), wherein the unobserved component of random utility is linked between the trip decision and the retrospective trip evaluation, we decompose the unobserved component into linked and independent elements, and make the linked component a function of cognitive factors hypothesized as affecting differences between the RP and SP responses. Results suggest that a significant "wedge" exists between the closely related trip decision and its retrospective valuation, and that this wedge is not fully explained by factors such as experience, recall, and unobserved time costs.

Suggested Citation

  • Bennett, Michael & Provencher, Bill & Bishop, Richard C., 2004. "Experience, Expectations and Hindsight: Evidence of a Cognitive Wedge in Stated Preference Retrospectives," Staff Papers 12642, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    • Handle: RePEc:ags:wisagr:12642
    DOI: 10.22004/ag.econ.12642
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/12642/files/stpap468.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.12642?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Christopher D. Azevedo & Joseph A. Herriges & Catherine L. Kling, 2000. "Ask a Hypothetical Question, Get a Valuable Answer?," Center for Agricultural and Rural Development (CARD) Publications 00-wp260, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Joseph A. Herriges & Catherine L. Kling & Daniel J. Phaneuf, 1999. "Corner Solution Models of Recreation Demand: A Comparison of Competing Frameworks," Chapters, in: Joseph A. Herriges & Catherine L. Kling (ed.), Valuing Recreation and the Environment, chapter 6, pages 163-198, Edward Elgar Publishing.
    3. Timothy C. Haab & Ju-Chin Huang & John C. Whitehead, 1999. "Are Hypothetical Referenda Incentive Compatible? A Comment," Journal of Political Economy, University of Chicago Press, vol. 107(1), pages 186-196, February.
    4. Adamowicz, Wiktor & Swait, Joffre & Boxall, Peter & Louviere, Jordan & Williams, Michael, 1997. "Perceptions versus Objective Measures of Environmental Quality in Combined Revealed and Stated Preference Models of Environmental Valuation," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 65-84, January.
    5. Brownstone, David & Bunch, David S. & Train, Kenneth, 2000. "Joint mixed logit models of stated and revealed preferences for alternative-fuel vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 34(5), pages 315-338, June.
    6. Edward R. Morey & Robert D. Rowe & Michael Watson, 1993. "A Repeated Nested-Logit Model of Atlantic Salmon Fishing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(3), pages 578-592.
    7. M. K. Haener & P. C. Boxall & W. L. Adamowicz, 2001. "Modeling Recreation Site Choice: Do Hypothetical Choices Reflect Actual Behavior?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 629-642.
    8. Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
    9. Brownstone, David & Bunch, David S. & Train, Kenneth, 2000. "Joint mixed logit models of stated and revealed preferences for alternative-fuel vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 34(5), pages 315-338, June.
    10. Joseph A. Herriges & Catherine L. Kling (ed.), 1999. "Valuing Recreation and the Environment," Books, Edward Elgar Publishing, number 1315.
    11. Hanemann, W. Michael, 1983. "Marginal welfare measures for discrete choice models," Economics Letters, Elsevier, vol. 13(2-3), pages 129-136.
    12. Niklitschek+, Mario & Leon+, Javier, 1996. "Combining Intended Demand and Yes/No Responses in the Estimation of Contingent Valuation Models," Journal of Environmental Economics and Management, Elsevier, vol. 31(3), pages 387-402, November.
    13. Provencher, Bill & Bishop, Richard C., 1997. "An Estimable Dynamic Model of Recreation Behavior with an Application to Great Lakes Angling," Journal of Environmental Economics and Management, Elsevier, vol. 33(2), pages 107-127, June.
    14. Trudy Ann Cameron, 1992. "Combining Contingent Valuation and Travel Cost Data for the Valuation of Nonmarket Goods," Land Economics, University of Wisconsin Press, vol. 68(3), pages 302-317.
    15. Azevedo, Christopher Dean, 1999. "Linking revealed and stated preference data in recreation demand modeling," ISU General Staff Papers 1999010108000013438, Iowa State University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniel McFadden, 2009. "The human side of mechanism design: a tribute to Leo Hurwicz and Jean-Jacque Laffont," Review of Economic Design, Springer;Society for Economic Design, vol. 13(1), pages 77-100, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bennett, Michael & Provencher, Bill & Bishop, Richard, 2004. "Experience, Expectations and Hindsight: Evidence of a Cognitive Wedge in Stated Preference Retrospectives," Staff Paper Series 468, University of Wisconsin, Agricultural and Applied Economics.
    2. John C. Whitehead & Subhrendu K. Pattanayak & George L. Van Houtven & Brett R. Gelso, 2008. "Combining Revealed And Stated Preference Data To Estimate The Nonmarket Value Of Ecological Services: An Assessment Of The State Of The Science," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 872-908, December.
    3. Phaneuf, Daniel J. & Smith, V. Kerry, 2006. "Recreation Demand Models," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 15, pages 671-761, Elsevier.
    4. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    5. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part I. Macro-scale analysis of literature and integrative synthesis of empirical evidence from applied economics, experimental psychology and neuroimag," Journal of choice modelling, Elsevier, vol. 41(C).
    6. Hocheol Jeon & Joseph A. Herriges, 2017. "Combining Revealed Preference Data with Stated Preference Data: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(4), pages 1053-1086, December.
    7. Lew, Daniel K. & Larson, Douglas M., 2005. "Accounting for stochastic shadow values of time in discrete-choice recreation demand models," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 341-361, September.
    8. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    9. von Haefen, Roger H. & Phaneuf, Daniel J., 2008. "Identifying demand parameters in the presence of unobservables: A combined revealed and stated preference approach," Journal of Environmental Economics and Management, Elsevier, vol. 56(1), pages 19-32, July.
    10. Richard T. Carson & Miko_aj Czajkowski, 2014. "The discrete choice experiment approach to environmental contingent valuation," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 9, pages 202-235, Edward Elgar Publishing.
    11. Agimass, Fitalew & Lundhede, Thomas & Panduro, Toke Emil & Jacobsen, Jette Bredahl, 2018. "The choice of forest site for recreation: A revealed preference analysis using spatial data," Ecosystem Services, Elsevier, vol. 31(PC), pages 445-454.
    12. Adelina Gschwandtner & Jose Eduardo Ribeiro & Cesar Revoredo-Giha & Michael Burton, 2021. "Combining Stated and Revealed Preferences for valuing Organic Chicken Meat," Studies in Economics 2113, School of Economics, University of Kent.
    13. Bergantino, Angela Stefania & Bolis, Simona, 2004. "An analysis of maritime ro-ro freight transport service attributes through adaptive stated preference: an application to a sample of freight forwarders," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 25-26, pages 33-51.
    14. Smith, V. Kerry, 2000. "JEEM and Non-market Valuation: 1974-1998," Journal of Environmental Economics and Management, Elsevier, vol. 39(3), pages 351-374, May.
    15. Helveston, John Paul & Feit, Elea McDonnell & Michalek, Jeremy J., 2018. "Pooling stated and revealed preference data in the presence of RP endogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 109(C), pages 70-89.
    16. John C. Whitehead & Daniel K. Lew, 2020. "Estimating recreation benefits through joint estimation of revealed and stated preference discrete choice data," Empirical Economics, Springer, vol. 58(4), pages 2009-2029, April.
    17. Cheng, Li & Lupi, Frank, 2016. "Combining Revealed and Stated Preference Methods for Valuing Water Quality Changes to Great Lakes Beaches," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235746, Agricultural and Applied Economics Association.
    18. Kovacs, Kent F. & Larson, Douglas M., 2006. "Recreation at open space and residential development patterns," 2006 Annual meeting, July 23-26, Long Beach, CA 271502, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Daigee Shaw & Yu-Lan Chien & Yih-Ming Lin, 1999. "Alternative approach to combining revealed and stated preference data: evaluating water quality of a river system in Taipei," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 2(2), pages 97-112, June.
    20. Daigee Shaw & Yu-Lan Chien & Yih-Ming Lin, 1999. "Alternative approach to combining revealed and stated preference data: evaluating water quality of a river system in Taipei," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 2(2), pages 97-112, June.

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:wisagr:12642. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/dauwius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.