The “more is less” phenomenon in Contingent and Inferred valuation
AbstractWe examine inconsistencies in preference orderings of the “more is less” kind (Alevy et al. 2011) using the Contingent valuation (CV) and the Inferred valuation (IV) method (Lusk and Norwood 2009a, 2009b). We find that when moving in a familiar market for consumers (i.e., the food market) we only observe weak effects of inconsistencies. In addition, we find that the IV method is no better than the CV method in generating more consistent preference orderings. Surprisingly, we also find that the IV method generates higher valuations than CV, rendering one of its advantages of mitigating social desirability bias questionable.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 29456.
Date of creation: Mar 2011
Date of revision:
willingness-to-pay (WTP); Contingent Valuation (CV); Inferred Valuation(IV); preference reversals;
Other versions of this item:
- Stachtiaris, Spiros & Drichoutis, Andreas C. & Klonaris, Stathis, 2011. "The "more is less" phenomenon in Contingent and Inferred valuation," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116013, European Association of Agricultural Economists.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-19 (All new papers)
- NEP-CBE-2011-03-19 (Cognitive & Behavioural Economics)
- NEP-EXP-2011-03-19 (Experimental Economics)
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