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When is some number really better than no number? On the optimal choice between non-market valuation methods

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  • Munro, Alistair

Abstract

Decision-makers have a wide variety of competing and complementary methods for non-market valuation, but there is little formal advice on the choice of method. I offer a formal approach, using a loss function (the mean square error) to compare contingent valuation, Citizens'Jury and methods where by intention only a portion of total value is estimated, when a) preferences vary across the population and b) methods are more or less susceptible to framing effects. Illustrative simulations suggest con-ditions under which the Citizens'Jury may dominate contingent valuation when framing effects are significant.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8978.

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Date of creation: 20 Sep 2007
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Handle: RePEc:pra:mprapa:8978

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Keywords: contingent valuation; Citizens' Jury; optimal decisions; framing effects; cost-benefit analysis;

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Cited by:
  1. Johane Dikgang & Edwin Muchapondwa, 2011. "The valuation of biodiversity conservation by the South African Khomani San "bushmen" community," Working Papers 257, Economic Research Southern Africa.

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