How Can Behavioral Economics Inform Non-Market Valuation? An Example from the Preference Reversal Literature
AbstractPsychological insights have made inroads within most major areas of study in economics. One area where less advance has been made is environmental and resource economics. In this study, we examine the implications of preference reversals over evaluation modes, in which stated economic values critically depend on whether the good is valued jointly with others or in isolation. The question arises because two commonly used methods for eliciting stated preferences differ in that one presents objects together and another presents objects to be evaluated in isolation. Beyond showing an example of the import of behavioral economics, our empirical evidence sheds new light on the factors associated with insensitivity of valuations to the scope of the good.
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Date of creation: May 2010
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- Jonathan E. Alevy & John A. List & Wiktor L. Adamowicz, 2011. "How Can Behavioral Economics Inform Nonmarket Valuation? An Example from the Preference Reversal Literature," Land Economics, University of Wisconsin Press, vol. 87(3), pages 365-381.
- Jonathan E. Alevy & John A. List & Wiktor Adamowicz, 2010. "How can Behavioral Economics Inform Non-Market Valuation? An Example from the Preference Reversal Literature," Working Papers 2010-08, University of Alaska Anchorage, Department of Economics.
- Jonathan Alevy & John List & Vic Adamowicz, 2010. "How can behavioral economics inform non-market valuation? An example from the preference reversal literature," Artefactual Field Experiments 00002, The Field Experiments Website.
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
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