Binary Choice Valuation Studies with Heteregeneous Preferences Regarding the Program Being Valued
We investigate the effect of respondents' heterogeneous preferences regarding the good to be valued in binary-choice contingent valuationstudies. This is especially important when the valuation options give rise to both highly negative and highly positive attitudes.The survey design employs questionnaires which include separate items for willingness to favorandwillingness to contribute in monetary terms to the provision of the good. In light of our analysis, eliciting respondents' differentpreferences for the project first, without monetary considerations, wouldimprove the WTP estimates as welfare measures. Our results alsosuggest that nonparametric estimation could offer another solution foraccounting for preference heterogeneity. Nonparametric estimation is less sensitive to those `no' responses which are in fact not intended toreflect the respondents' WTP as such but merely to express their dislikefor the good at issue. Copyright Kluwer Academic Publishers 2000
Volume (Year): 16 (2000)
Issue (Month): 3 (July)
|Contact details of provider:|| Web page: http://www.springerlink.com/link.asp?id=100263|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-19, November.
- Kealy, Mary Jo & Montgomery, Mark & Dovidio, John F., 1990. "Reliability and predictive validity of contingent values: Does the nature of the good matter?," Journal of Environmental Economics and Management, Elsevier, vol. 19(3), pages 244-263, November.
- Bengt Kristr�m, 1997. "Spike Models in Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 1013-1023.
- Haab, Timothy C. & McConnell, Kenneth E., 1997.
"Referendum Models and Negative Willingness to Pay: Alternative Solutions,"
Journal of Environmental Economics and Management,
Elsevier, vol. 32(2), pages 251-270, February.
- Timothy C. Haab & Kenneth E. McConnell, . "Referendum Models and Negative Willingness to Pay: Alternative Solutions," Working Papers 9610, East Carolina University, Department of Economics.
- Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
- Cummings, Ronald G & Harrison, Glenn W & Rutstrom, E Elisabet, 1995. "Homegrown Values and Hypothetical Surveys: Is the Dichotomous Choice Approach Incentive-Compatible?," American Economic Review, American Economic Association, vol. 85(1), pages 260-66, March.
- Carson, Richard T & Wilks, Leanne & Imber, David, 1994. "Valuing the Preservation of Australia's Kakadu Conservation Zone," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 727-49, Supplemen.
When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:16:y:2000:i:3:p:263-279. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.