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Do divergences between stated and actual willingness to pay signify the existence of bias in contingent valuation surveys?

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  • Onwujekwe, Obinna
  • Hanson, Kara
  • Fox-Rushby, Julia

Abstract

This study's objective is to determine the factors that cause divergences over time (differences) between stated willingness to pay (WTP) and actual WTP (purchase behaviour), and consider whether any divergence signifies the presence of bias in contingent valuation studies. Stated WTP for insecticide-treated bed-nets (ITNs) was elicited from a random sample of respondents using three question formats in Nigeria. The question formats were the bidding game (BG), binary with follow-up (BWFU) and a novel structured haggling (SH) technique. The sales of the nets and a second survey were conducted 1 month after the first survey. In the second survey, factors that might explain the divergences were built into the questionnaire and these together with socio-economic variables were examined for causes of divergences in WTP. Data were analysed using non-parametric tests, testing of means and cross-tabulations. There were divergences in WTP in all three question formats: 69.4% in the BG, 78.7% in the BWFU and 48.8% in the SH. The higher the stated WTP, the more likely the divergence between stated and actual WTP. The attitude of the community leaders to the ITNs in the BG (p

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  • Onwujekwe, Obinna & Hanson, Kara & Fox-Rushby, Julia, 2005. "Do divergences between stated and actual willingness to pay signify the existence of bias in contingent valuation surveys?," Social Science & Medicine, Elsevier, vol. 60(3), pages 525-536, February.
    • Handle: RePEc:eee:socmed:v:60:y:2005:i:3:p:525-536
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    5. Kanya, Lucy & Saghera, Sabina & Lewin, Alex & Fox-Rushby, Julia, 2019. "The criterion validity of willingness to pay methods: a systematic review and meta-analysis of the evidence," LSE Research Online Documents on Economics 100741, London School of Economics and Political Science, LSE Library.
    6. Mandy Ryan & Emmanouil Mentzakis & Suthi Jareinpituk & John Cairns, 2017. "External Validity of Contingent Valuation: Comparing Hypothetical and Actual Payments," Health Economics, John Wiley & Sons, Ltd., vol. 26(11), pages 1467-1473, November.
    7. Paul McNamee & Laura Ternent & Adjima Gbangou & David Newlands, 2010. "A game of two halves? Incentive incompatibility, starting point bias and the bidding game contingent valuation method," Health Economics, John Wiley & Sons, Ltd., vol. 19(1), pages 75-87, January.
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    10. Awad Mataria & Stéphane Luchini & Yousef Daoud & Jean-Paul Moatti, 2007. "Demand assessment and price-elasticity estimation of quality-improved primary health care in palestine: a contribution from the contingent valuation method," Health Economics, John Wiley & Sons, Ltd., vol. 16(10), pages 1051-1068.
    11. M. Trapero‐Bertran & H. Mistry & J. Shen & J. Fox‐Rushby, 2013. "A Systematic Review And Meta‐Analysis Of Willingness‐To‐Pay Values: The Case Of Malaria Control Interventions," Health Economics, John Wiley & Sons, Ltd., vol. 22(4), pages 428-450, April.
    12. Aziz, Sonia & Pakhtigian, Emily L. & Akanda, Ali S. & Jutla, Antarpreet & Huq, Anwar & Alam, Munirul & Ashan, Gias U. & Colwell, Rita R., 2021. "Does improved risk information increase the value of cholera prevention? An analysis of stated vaccine demand in slum areas of urban Bangladesh," Social Science & Medicine, Elsevier, vol. 272(C).
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