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Interval bidding in a distribution elicitation format

Listed author(s):
  • Pierre-Alexandre Mahieu

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes)

  • François-Charles Wolff

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes)

  • Jason Shogren

    (UW - University of Wyoming)

  • Pascal Gastineau

    (IFSTTAR/AME/EASE - Environnement, Aménagement, Sécurité et Eco-conception - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - PRES Université Nantes Angers Le Mans [UNAM])

Interval bidding allows people to report a range of values for a non-market good. Herein, we allow people to choose their distribution over this range endogenously. We consider a multiplicative error model explaining the willingness to pay (WTP) which is estimated using a feasible generalized least squares estimator. We apply our framework to a representative sample of the French population who were asked about the valuation of a bear conservation programme. We find that most participants prefer stating their WTP as a range rather than a point, but the shape of the distribution greatly varies across people. Our results support the use of the interval bidding with endogenous distribution approach in valuation studies.

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Paper provided by HAL in its series Post-Print with number hal-01576239.

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Date of creation: 01 Jan 2017
Publication status: Published in Applied Economics, Taylor & Francis (Routledge), 2017, 49 (51)
Handle: RePEc:hal:journl:hal-01576239
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01576239
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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