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Scale sensitivity and question order in the contingent valuation method

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  • Henrik Andersson
  • Mikael Svensson

Abstract

This study examines the effect on respondents' willingness to pay to reduce mortality risk by the order of the questions in a stated preference study. Using answers from an experiment conducted on a Swedish sample where respondents' cognitive ability was measured and where they participated in a contingent valuation survey, it was found that scale sensitivity is strongest when respondents are asked about a smaller risk reduction first ('bottom-up' approach). This contradicts some previous evidence in the literature. It was also found that the respondents' cognitive ability is more important for showing scale sensitivity when respondents are asked about a larger risk reduction first ('top-down' approach), also reinforcing the result that a 'bottom-up' approach is more consistent with answers in line with theoretical predictions for a larger proportion of respondents.
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Suggested Citation

  • Henrik Andersson & Mikael Svensson, 2010. "Scale sensitivity and question order in the contingent valuation method," LERNA Working Papers 10.03.309, LERNA, University of Toulouse.
    • Handle: RePEc:ler:wpaper:10.03.309
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    References listed on IDEAS

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    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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