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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

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

Find related papers by JEL classification:
D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles

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