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Are Stated Preferences Invariant To The Prospect Of Real-Money Choice?

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  • Newell, Laurienne Whinstanley
  • Swallow, Stephen K.

Abstract

This paper reports on a choice experiment where respondents stated their preferences for different wetland parcels. The study used hypothetical surveys to measure respondents' preferences, but in one survey version respondents expected and received a follow-up question involving real monetary payments. The results indicate that those respondents who received hypothetical surveys that included a real-money question registered a different preference function from those respondents who received a survey that asked respondents to answer hypothetical questions only. The study finds that respondents may reverse their preferences for parcel attributes, such as public access to the parcel as related to presentation.

Suggested Citation

  • Newell, Laurienne Whinstanley & Swallow, Stephen K., 2002. "Are Stated Preferences Invariant To The Prospect Of Real-Money Choice?," 2002 Annual meeting, July 28-31, Long Beach, CA 19623, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea02:19623
    DOI: 10.22004/ag.econ.19623
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    References listed on IDEAS

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    1. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    2. Karen Blumenschein & Magnus Johannesson & Glenn C. Blomquist & Bengt Liljas & Richard M. O’Conor, 1998. "Experimental Results on Expressed Certainty and Hypothetical Bias in Contingent Valuation," Southern Economic Journal, John Wiley & Sons, vol. 65(1), pages 169-177, July.
    3. 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.
    4. R. K. Blamey & J. W. Bennett & M. D. Morrison, 1999. "Yea-Saying in Contingent Valuation Surveys," Land Economics, University of Wisconsin Press, vol. 75(1), pages 126-141.
    5. Johnston, Robert J. & Weaver, Thomas F. & Smith, Lynn A. & Swallow, Stephen K., 1995. "Contingent Valuation Focus Groups: Insights from Ethnographic Interview Techniques," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(1), pages 56-69, April.
    6. Karen Blumenschein & Magnus Johannesson & Glenn C. Blomquist & Bengt Liljas & Richard M. O'Conor, 1998. "Experimental Results on Expressed Certainty and Hypothetical Bias in Contingent Valuation," Southern Economic Journal, John Wiley & Sons, vol. 65(1), pages 169-177, July.
    7. Adamowicz, Wiktor L. & Boxall, Peter C. & Williams, Michael & Louviere, Jordan, 1995. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments versus Contingent Valuation," Staff Paper Series 24126, University of Alberta, Department of Resource Economics and Environmental Sociology.
    8. Magnus Johannesson & Bengt Liljas & Per-Olov Johansson, 1998. "An experimental comparison of dichotomous choice contingent valuation questions and real purchase decisions," Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 643-647.
    9. Helen R. Neill & Ronald G. Cummings & Philip T. Ganderton & Glenn W. Harrison & Thomas McGuckin, 1994. "Hypothetical Surveys and Real Economic Commitments," Land Economics, University of Wisconsin Press, vol. 70(2), pages 145-154.
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    14. John Loomis & Thomas Brown & Beatrice Lucero & George Peterson, 1996. "Improving Validity Experiments of Contingent Valuation Methods: Results of Efforts to Reduce the Disparity of Hypothetical and Actual Willingness to Pay," Land Economics, University of Wisconsin Press, vol. 72(4), pages 450-461.
    15. Spencer, Michael A. & Swallow, Stephen K. & Miller, Christopher J., 1998. "Valuing Water Quality Monitoring: A Contingent Valuation Experiment Involving Hypothetical and Real Payments," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(1), pages 28-42, April.
    16. Patricia Champ & Richard Bishop, 2001. "Donation Payment Mechanisms and Contingent Valuation: An Empirical Study of Hypothetical Bias," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(4), pages 383-402, August.
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    Cited by:

    1. Swallow, Stephen K., 2013. "Demand-side Value for Ecosystem Services and Implications for Innovative Markets: Experimental Perspectives on the Possibility of Private Markets for Public Goods," Agricultural and Resource Economics Review, Cambridge University Press, vol. 42(1), pages 33-56, April.
    2. Johnston, Robert J. & Joglekar, Deepak P., 2005. "Validating Hypothetical Surveys Using Binding Public Referenda: Implications for Stated Preference Valuation," 2005 Annual meeting, July 24-27, Providence, RI 19519, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Boyle, Kevin J. & Morrison, Mark & Taylor, Laura O., 2004. "Why Value Estimates Generated Using Choice Modelling Exceed Contingent Valuation: Further Experimental Evidence," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58370, Australian Agricultural and Resource Economics Society.

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