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An Inferred Valuation Method


  • Jayson L. Lusk
  • F. Bailey Norwood


Although estimates of people’s values for public goods are often needed to conduct costbenefit analysis, existing value elicitation methods are prone to a number of well-documented biases. We argue that some of these biases result because people derive utility from the act of saying they are willing to pay for a good. To counteract this phenomenon, we consider an approach that asks people to predict or infer others’ values for a good instead of asking people to state their own value. Both a conceptual model and results from a laboratory experiment lend support for the new approach.

Suggested Citation

  • Jayson L. Lusk & F. Bailey Norwood, 2009. "An Inferred Valuation Method," Land Economics, University of Wisconsin Press, vol. 85(3), pages 500-514.
  • Handle: RePEc:uwp:landec:v:85:y:2009:i:3:p:500-514

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    References listed on IDEAS

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    25. Klaiman, Kimberly & Ortega, David & Garnache, Cloe, 2016. "Consumer Preferences and Demand for Packaging Material and Recyclability," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235549, Agricultural and Applied Economics Association.

    More about this item

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects


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