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Valuing the Cultural Monuments of Armenia: Bayesian Updating of Prior Beliefs in Contingent Valuation

Author

Listed:
  • Anna Alberini

    (AREC, University of Maryland)

  • Alberto Longo

    (Queen's University Belfast)

Abstract

We use contingent valuation to place a value on the conservation of built cultural heritage sites in Armenia. When we present the hypothetical scenario in the questionnaire we spell out what would happen to the monuments in the absence of the government conservation program. We posit that respondents combine such information with their own prior beliefs, which the questionnaire also elicits, and that the WTP for the good or program is likely to be affected by these updated beliefs. We propose a Bayesian updating model of prior beliefs, and empirically implement it using the data from our survey. We find that uncertainty about what would happen to the monument in the absence of the program results in lower WTP amounts.

Suggested Citation

  • Anna Alberini & Alberto Longo, 2007. "Valuing the Cultural Monuments of Armenia: Bayesian Updating of Prior Beliefs in Contingent Valuation," Working Papers 2007.36, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2007.36
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    References listed on IDEAS

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    1. Soma Bhattacharya & Anna Alberini & Maureen Cropper, 2007. "The value of mortality risk reductions in Delhi, India," Journal of Risk and Uncertainty, Springer, vol. 34(1), pages 21-47, February.
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    6. Ajzen, Icek & Brown, Thomas C. & Rosenthal, Lori H., 1996. "Information Bias in Contingent Valuation: Effects of Personal Relevance, Quality of Information, and Motivational Orientation," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 43-57, January.
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    8. Viscusi, W Kip, 1989. "Prospective Reference Theory: Toward an Explanation of the Paradoxes," Journal of Risk and Uncertainty, Springer, vol. 2(3), pages 235-263, September.
    9. Ian J. Bateman & Richard T. Carson & Brett Day & Michael Hanemann & Nick Hanley & Tannis Hett & Michael Jones-Lee & Graham Loomes, 2002. "Economic Valuation with Stated Preference Techniques," Books, Edward Elgar Publishing, number 2639.
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    Cited by:

    1. Turner, Robert & Willmarth, Blake, 2014. "Valuation of Cultural and Natural Resources in North Cascades National Park: Results from a Tournament-Style Contingent Choice Survey," Working Papers 2014-01, Department of Economics, Colgate University, revised 23 Jan 2014.
    2. Andrea Leiter & Gerald Pruckner, 2009. "Proportionality of Willingness to Pay to Small Changes in Risk: The Impact of Attitudinal Factors in Scope Tests," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(2), pages 169-186, February.
    3. Mirko Moro & Karen Mayor & Seán Lyons & Richard S J Tol, 2013. "Does the Housing Market Reflect Cultural Heritage? A Case Study of Greater Dublin," Environment and Planning A, , vol. 45(12), pages 2884-2903, December.
    4. Liao, Shu-Yi & Tseng, Wei-Chun & Chen, Chi-Chung, 2010. "Eliciting public preference for nuclear energy against the backdrop of global warming," Energy Policy, Elsevier, vol. 38(11), pages 7054-7069, November.
    5. repec:eee:eneeco:v:63:y:2017:i:c:p:253-260 is not listed on IDEAS
    6. Katuwal, Hari & Venn, Tyron J. & Paveglio, Travis & Prato, Tony, 2015. "Effects of Information Framing and Information Seeking Behavior on Willingness-to-pay for a Wildfire Management Program," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205645, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    7. Longo, Alberto & Boeri, Marco, 2014. "Information, Random Regret Minimisation, Random Utility Maximisation: Willingness to pay for Renewable Energy," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182670, European Association of Agricultural Economists.
    8. Wright, William C.C. & Eppink, Florian V., 2016. "Drivers of heritage value: A meta-analysis of monetary valuation studies of cultural heritage," Ecological Economics, Elsevier, vol. 130(C), pages 277-284.

    More about this item

    Keywords

    Valuation of Cultural Heritage Sites; Non-Market Valuation; Contingent Valuation; Bayesian Updating; Prior Beliefs;

    JEL classification:

    • Z10 - Other Special Topics - - Cultural Economics - - - General

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