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Trichotomous Choice: A Possible Solution To Dual Response Objectives In Dichotomous Choice Contingent Valuation Questions

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  • Loomis, John B.
  • Traynor, Kerri
  • Brown, Thomas C.

Abstract

We investigate the possibility that some respondents to a dichotomous choice question vote YES, even though they would not pay the posted dollar amount in order to register support for the project or policy. A trichotomous choice question format is proposed to determine if allowing respondents the opportunity to vote in favor of a project at an amount less than their bid affects estimated willingness to pay. Using univariate and multivariate tests, we find the trichotomous choice question format reduces the number of YES responses and produces a statistically significant decrease in willingness to pay for an open-space program.

Suggested Citation

  • Loomis, John B. & Traynor, Kerri & Brown, Thomas C., 1999. "Trichotomous Choice: A Possible Solution To Dual Response Objectives In Dichotomous Choice Contingent Valuation Questions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(2), pages 1-12, December.
    • Handle: RePEc:ags:jlaare:30799
    DOI: 10.22004/ag.econ.30799
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    References listed on IDEAS

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    1. John Loomis & Thomas Brown & Beatrice Lucero & George Peterson, 1997. "Evaluating the Validity of the Dichotomous Choice Question Format in Contingent Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(2), pages 109-123, September.
    2. W. Michael Hanemann, 1989. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Response Data: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 1057-1061.
    3. Thomas C. Brown & Patricia A. Champ & Richard C. Bishop & Daniel W. McCollum, 1996. "Which Response Format Reveals the Truth about Donations to a Public Good?," Land Economics, University of Wisconsin Press, vol. 72(2), pages 152-166.
    4. Hoehn, John P. & Randall, Alan, 1987. "A satisfactory benefit cost indicator from contingent valuation," Journal of Environmental Economics and Management, Elsevier, vol. 14(3), pages 226-247, September.
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    1. Jiang, Qi & Penn, Jerrod & Hu, Wuyang, 2022. "Real payment priming to reduce potential hypothetical bias," Journal of choice modelling, Elsevier, vol. 45(C).
    2. Ahlheim, Michael & Frör, Oliver & Nguyen Minh Duc & Rehl, Antonia & Siepmann, Ute & Pham Van Dinh, 2017. "Labour as a utility measure reconsidered," Hohenheim Discussion Papers in Business, Economics and Social Sciences 03-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    3. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    4. Abate, Tenaw G. & Börger, Tobias & Aanesen, Margrethe & Falk-Andersson, Jannike & Wyles, Kayleigh J. & Beaumont, Nicola, 2020. "Valuation of marine plastic pollution in the European Arctic: Applying an integrated choice and latent variable model to contingent valuation," Ecological Economics, Elsevier, vol. 169(C).
    5. Krawczyk, Michał, 2012. "Testing for hypothetical bias in willingness to support a reforestation program," Journal of Forest Economics, Elsevier, vol. 18(4), pages 282-289.
    6. Duke, Joshua M. & Johnston, Robert J., 2006. "Systematic Influences of Policy Implementation and Conservation Agents on Willingness to Pay for Land Preservation," 2006 Annual meeting, July 23-26, Long Beach, CA 21234, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Mark Morrison & Thomas Brown, 2009. "Testing the Effectiveness of Certainty Scales, Cheap Talk, and Dissonance-Minimization in Reducing Hypothetical Bias in Contingent Valuation Studies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(3), pages 307-326, November.
    8. Alec Smith & B. Douglas Bernheim & Colin F. Camerer & Antonio Rangel, 2014. "Neural Activity Reveals Preferences without Choices," American Economic Journal: Microeconomics, American Economic Association, vol. 6(2), pages 1-36, May.
    9. Dietrich Earnhart, 2006. "Using Contingent-Pricing Analysis to Value Open Space and Its Duration at Residential Locations," Land Economics, University of Wisconsin Press, vol. 82(1), pages 17-35.
    10. Banzhaf, H. Spencer, 2009. "Economics at the Fringe: Non-Market Valuation Studies and their Role in Land Use Plans in the United States," MPRA Paper 101193, University Library of Munich, Germany.
    11. Johnston, Robert J. & Duke, Joshua M. & Kukielka, Jessica B., 2008. "Optimizing Farmland Preservation Choices Across Communities and Jurisdictional Scales: To What Extent are Amenity Values and Selection Criteria Transferable?," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6243, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Bateman, Ian J. & Langford, Ian H. & Jones, Andrew P. & Kerr, Geoffrey N., 2001. "Bound and path effects in double and triple bounded dichotomous choice contingent valuation," Resource and Energy Economics, Elsevier, vol. 23(3), pages 191-213, July.
    13. Ballad, Emma Legaspi & Shinbo, Teruyuki & Morooka, Yoshinori, 2018. "Evaluation of the Villagers' Willingness to Work or Pay for the Promotion of Community-based Marine Protected Areas in Cagayan Province, Philippines," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 20.
    14. Robert Johnston & Joshua Duke, 2008. "Benefit Transfer Equivalence Tests with Non-normal Distributions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(1), pages 1-23, September.
    15. Robert J. Johnston & Joshua M. Duke, 2009. "Willingness to Pay for Land Preservation across States and Jurisdictional Scale: Implications for Benefit Transfer," Land Economics, University of Wisconsin Press, vol. 85(2), pages 217-237.

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