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Reliability of individual valuations of public and private goods: Choice consistency, response time, and preference refinement

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  • Brown, Thomas C.
  • Kingsley, David
  • Peterson, George L.
  • Flores, Nicholas E.
  • Clarke, Andrea
  • Birjulin, Andrej

Abstract

We examined the reliability of a large set of paired comparison value judgments involving public goods, private goods, and sums of money. As respondents progressed through a random sequence of paired choices they were each given, their response time decreased and they became more consistent, apparently fine-tuning their responses, suggesting that respondents tend to begin a hypothetical value exercise with relatively imprecise preferences and that experience in expressing preference helps reduce that imprecision. Reliability was greater for private than for public good choices, and greater for choices between a good and a monetary amount than for choices between two goods. However, the reliability for public good choices was only slightly lower than for the private goods.

Suggested Citation

  • Brown, Thomas C. & Kingsley, David & Peterson, George L. & Flores, Nicholas E. & Clarke, Andrea & Birjulin, Andrej, 2008. "Reliability of individual valuations of public and private goods: Choice consistency, response time, and preference refinement," Journal of Public Economics, Elsevier, vol. 92(7), pages 1595-1606, July.
  • Handle: RePEc:eee:pubeco:v:92:y:2008:i:7:p:1595-1606
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    References listed on IDEAS

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    Cited by:

    1. Thunström, Linda & Nordström, Jonas & Shogren, Jason F., 2015. "Certainty and overconfidence in future preferences for food," Journal of Economic Psychology, Elsevier, vol. 51(C), pages 101-113.
    2. Tobias Börger, 2016. "Are Fast Responses More Random? Testing the Effect of Response Time on Scale in an Online Choice Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(2), pages 389-413, October.
    3. repec:pri:cepsud:217krueger is not listed on IDEAS
    4. Krueger, Alan B. & Kuziemko, Ilyana, 2013. "The demand for health insurance among uninsured Americans: Results of a survey experiment and implications for policy," Journal of Health Economics, Elsevier, vol. 32(5), pages 780-793.
    5. LaRiviere, Jacob & Czajkowski, Mikołaj & Hanley, Nick & Aanesen, Margrethe & Falk-Petersen, Jannike & Tinch, Dugald, 2014. "The value of familiarity: Effects of knowledge and objective signals on willingness to pay for a public good," Journal of Environmental Economics and Management, Elsevier, vol. 68(2), pages 376-389.
    6. Gianna Lotito & Matteo Migheli & Guido Ortona, 2013. "Is cooperation instinctive? Evidence from the response times in a public goods game," Journal of Bioeconomics, Springer, vol. 15(2), pages 123-133, July.
    7. Nick Hanley & Mikolaj Czajkowski, 2016. "What is the Causal Impact of Knowledge on Preferences in Stated Preference Studies?," Discussion Papers in Environment and Development Economics 2016-09, University of St. Andrews, School of Geography and Sustainable Development.
    8. Mikolaj Czajkowski & Nick Hanley & Jacob LaRiviere, 2015. "The Effects of Experience on Preferences: Theory and Empirics for Environmental Public Goods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(1), pages 333-351.
    9. Kingsley, David C. & Brown, Thomas C., 2013. "Value learning and the willingness to accept–willingness to pay disparity," Economics Letters, Elsevier, vol. 120(3), pages 473-476.
    10. Roy Brouwer & Thijs Dekker & John Rolfe & Jill Windle, 2010. "Choice Certainty and Consistency in Repeated Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(1), pages 93-109, May.
    11. Zhao, Xiaoli & Cai, Qiong & Ma, Chunbo & Hu, Yanan & Luo, Kaiyan & Li, William, 2017. "Economic evaluation of environmental externalities in China’s coal-fired power generation," Energy Policy, Elsevier, vol. 102(C), pages 307-317.
    12. Tobias Börger & Joseph Cook, 2016. "Giving respondents “time to think” reduces response randomness in repeated discrete choice tasks," Discussion Papers in Environment and Development Economics 2016-13, University of St. Andrews, School of Geography and Sustainable Development.
    13. repec:eee:jeeman:v:88:y:2018:i:c:p:18-34 is not listed on IDEAS
    14. Qiu, Jianying, 2015. "Completing incomplete preferences," MPRA Paper 72933, University Library of Munich, Germany, revised 18 Jul 2016.
    15. repec:pri:indrel:dsp01bc386j227 is not listed on IDEAS
    16. repec:kap:enreec:v:68:y:2017:i:3:d:10.1007_s10640-016-0045-z is not listed on IDEAS
    17. Lipovetsky, Stan & Conklin, Michael, 2014. "Best-Worst Scaling in analytical closed-form solution," Journal of choice modelling, Elsevier, vol. 10(C), pages 60-68.
    18. Dekker, T. & Koster, P.R. & Brouwer, R., 2012. "Changing with the tide: Semi-parametric estimation of preference dynamics," Serie Research Memoranda 0005, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    19. Yangui, A. & Akaichi, Faiçal & Costa-Font, M. & Gil, J. M., 2014. "Do experimental protocols in Conjoint Analysis matter in non Hypothetical settings?," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 170345, Agricultural Economics Society.
    20. Solomon Tarfasa & Roy Brouwer, 2011. "Estimation of the public benefits of urban water supply improvements in Ethiopia: a choice experiment," Post-Print hal-00762812, HAL.
    21. Migheli, Matteo, 2014. "Reaction Times in a Field Experiment: Is Really All about Instinctiveness," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201424, University of Turin.

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