Valuation on the Frontier: Calibrating Actual and Hypothetical Statements of Value
The lack of robust evidence showing that hypothetical behavior directly maps into real actions remains a major concern for proponents of stated preference nonmarket valuation techniques. This article explores a new statistical approach to link actual and hypothetical statements. Using willingness-to-pay field data on individual bids from sealed-bid auctions for a $350 baseball card, our results are quite promising. Estimating a stochastic frontier regression model that makes use of data that any contingent valuation survey would obtain, we derive a bid function that is not statistically different from the bid function obtained from subjects in an actual auction. If other data can be calibrated similarly, this method holds significant promise since an appropriate calibration scheme, ex ante or ex post, can be invaluable to the policy maker that desires more accurate estimates of use and nonuse values for nonmarket goods and services. Copyright 2004, Oxford University Press.
Volume (Year): 86 (2004)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org/
More information through EDIRC
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.:
- John A. Fox & Jason F. Shogren & Dermot J. Hayes & James B. Kliebenstein, 1998.
"CVM-X: Calibrating Contingent Values with Experimental Auction Markets,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 80(3), pages 455-465.
- Fox, John A. & Shogren, J. & Hayes, Dermot J. & Kliebenstein, James, 2003. "Cvm-X: Calibrating Contingent Values with Experimental Auction Markets," Staff General Research Papers 11935, Iowa State University, Department of Economics.
- Fox, John A. & Shogren, Jason F. & Hayes, Dermot J. & Kliebenstein, James, 1998. "Cvm-X: Calibrating Contingent Values with Experimental Auction Markets," Staff General Research Papers 1311, Iowa State University, Department of Economics.
- Jason Shogren & John List, 2002.
"Calibration of willingness-to-accept,"
Framed Field Experiments
00182, The Field Experiments Website.
- John List, 2001.
"Do explicit warnings eliminate the hypothetical bias in elicitation procedures? Evidence from field auctions for sportscards,"
Framed Field Experiments
00163, The Field Experiments Website.
- John A. List, 2001. "Do Explicit Warnings Eliminate the Hypothetical Bias in Elicitation Procedures? Evidence from Field Auctions for Sportscards," American Economic Review, American Economic Association, vol. 91(5), pages 1498-1507, December.
- Waldman, Donald M., 1982. "A stationary point for the stochastic frontier likelihood," Journal of Econometrics, Elsevier, vol. 18(2), pages 275-279, February.
- Timothy C. Haab & Ju-Chin Huang & John C. Whitehead, 1999.
"Are Hypothetical Referenda Incentive Compatible? A Comment,"
Journal of Political Economy,
University of Chicago Press, vol. 107(1), pages 186-196, February.
- Timothy C. Haab & Ju-Chin Huang & John C. Whitehead, . "Are Hypothetical Referenda Incentive Compatible? A Comment," Working Papers 9708, East Carolina University, Department of Economics.
- List, John A. & Shogren, Jason F., 1998.
"Calibration of the difference between actual and hypothetical valuations in a field experiment,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 37(2), pages 193-205, October.
- Jason Shogren & John List, 1998. "Calibration of the difference between actual and hypothetical valuations in a field experiment," Natural Field Experiments 00296, The Field Experiments Website.
- William C. Horrace & Peter Schmidt, 2002. "Confidence Statements for Efficiency Estimates from Stochastic Frontier Models," Econometrics 0206006, EconWPA.
- Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
- Frykblom, Peter, 1997. "Hypothetical Question Modes and Real Willingness to Pay," Journal of Environmental Economics and Management, Elsevier, vol. 34(3), pages 275-287, November.
When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:86:y:2004:i:1:p:213-221. 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: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.