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Starting Point Bias in Dichotomous Choice Valuation with Follow-Up Questioning

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  • Herriges, Joseph A.
  • Shogren, Jason F.

Abstract

Follow-up questions are frequently used to improve the efficiency of dichotomous choice contingent valuation questionnaires. However, a number of authors (e.g., [12, 16]) have noted a significant difference between the WTP distributions implied by initial and follow-up question responses. This paper investigates starting point bias as one explanation for the phenomenon. We develop a model of starting point bias in the context of dichotomous choice questioning with follow-up, using a Monte Carlo simulation to illustrate the potential bias imparted to WTP estimates. An application is provided based on data from a CV study in northcentral Iowa.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 1501.

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Date of creation: 01 Jan 1996
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Publication status: Published in Journal of Environmental Economics and Management 1996, vol. 30, pp. 112-131
Handle: RePEc:isu:genres:1501

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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  1. > Environmental and Natural Resource Economics > Environmental Economics > Valuation > Contingent valuation method > Question format and econometric issues
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