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Scale sensitivity and question order in the contingent valuation method

Listed author(s):
  • Andersson, Henrik

    (Department of Business, Economics, Statistics and Informatics)

  • Svensson, Mikael

    ()

    (Department of Business, Economics, Statistics and Informatics)

This study examines the effect on respondents' willingness to pay to reduce mortality risk by the order of the question in a stated preference study. Using answers from an experiment conducted on a Swedish sample where respondents’ cognitive ability was measured and where they participate in a contingent valuation survey it is found that scale sensitivity is the strongest when respondents are asked about a smaller risk reduction first (“Bottom-up” approach). This contradicts some previous evidence in the literature. It is also found that the respondents’ cognitive ability is correlated with their answers being line with theoretical predictions. The latter being important for the validity of the answers. Hence, the results of this paper suggest that scale sensitivity is related to the order of the questions and to respondents’ cognitive ability.

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File URL: https://www.oru.se/globalassets/oru-sv/institutioner/hh/workingpapers/workingpapers2010/wp-2-2010.pdf
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Paper provided by Örebro University, School of Business in its series Working Papers with number 2010:2.

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Length: 29 pages
Date of creation: 11 Feb 2010
Handle: RePEc:hhs:oruesi:2010_002
Contact details of provider: Postal:
Örebro University School of Business, SE - 701 82 ÖREBRO, Sweden

Phone: 019-30 30 00
Fax: 019-33 25 46
Web page: http://www.oru.se/Institutioner/Handelshogskolan-vid-Orebro-universitet/

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