A General Model of Starting Point Bias in Double-Bounded Dichotomous Contingent Valuation Surveys
This paper develops a general model that addresses the starting point bias in the dichotomous choice evaluation data by incorporating both the anchoring effect and yea-saying bias. The model is applied to a contingent valuation study that evaluated the health benefits of air quality improvement in three major metropolitan areas in Taiwan. The empirical evidence shows a strong anchoring effect but a weak yea-saying bias. The results show a serious understated willingness to pay if the biases in anchoring and yea-saying are not controlled.
|Date of creation:||Mar 2004|
|Date of revision:|
|Contact details of provider:|| Phone: 886-2-27822791|
Web page: http://www.econ.sinica.edu.tw/index.php?foreLang=en
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Herriges, Joseph A. & Shogren, Jason F., 1996.
"Starting Point Bias in Dichotomous Choice Valuation with Follow-Up Questioning,"
Staff General Research Papers
1501, Iowa State University, Department of Economics.
- Herriges, Joseph A. & Shogren, Jason F., 1996. "Starting Point Bias in Dichotomous Choice Valuation with Follow-Up Questioning," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 112-131, January.
- Gary S. Becker, 1974.
"A Theory of Social Interactions,"
NBER Working Papers
0042, National Bureau of Economic Research, Inc.
- Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
- Edna T. Loehman & Sehoon Park & David Boldt, 1994. "Willingness to Pay for Gains and Losses in Visibility and Health," Land Economics, University of Wisconsin Press, vol. 70(4), pages 478-498.
- Silverman, Jonathan & Klock, Mark, 1989. "The behavior of respondents in contingent valuation: Evidence on starting bids," Journal of Behavioral Economics, Elsevier, vol. 18(1), pages 51-60.
- Kevin J. Boyle & Richard C. Bishop & Michael P. Welsh, 1985. "Starting Point Bias in Contingent Valuation Bidding Games," Land Economics, University of Wisconsin Press, vol. 62(2), pages 188-194.
- Hadker, Nandini & Sharma, Sudhir & David, Ashish & Muraleedharan, T. R., 1997. "Willingness-to-pay for Borivli National Park: evidence from a Contingent Valuation," Ecological Economics, Elsevier, vol. 21(2), pages 105-122, May.
- Alberini Anna, 1995. "Optimal Designs for Discrete Choice Contingent Valuation Surveys: Single-Bound, Double-Bound, and Bivariate Models," Journal of Environmental Economics and Management, Elsevier, vol. 28(3), pages 287-306, May.
- Craig Bullock & Jim Kay, 1997. "Preservation and Change in the Upland Landscape: The Public Benefits of Grazing Management," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 40(3), pages 315-334.
- John C. Whitehead, 2002. "Incentive Incompatibility and Starting-Point Bias in Iterative Valuation Questions," Land Economics, University of Wisconsin Press, vol. 78(2), pages 285-297.
- Kahneman, Daniel & Knetsch, Jack L., 1992. "Valuing public goods: The purchase of moral satisfaction," Journal of Environmental Economics and Management, Elsevier, vol. 22(1), pages 57-70, January.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Adamowicz, Wiktor & Swait, Joffre & Boxall, Peter & Louviere, Jordan & Williams, Michael, 1997. "Perceptions versus Objective Measures of Environmental Quality in Combined Revealed and Stated Preference Models of Environmental Valuation," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 65-84, January.
- Holmes Thomas P. & Kramer Randall A., 1995. "An Independent Sample Test of Yea-Saying and Starting Point Bias in Dichotomous-Choice Contingent Valuation," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 121-132, July.
- Richard O‘Conor & Magnus Johannesson & Per-Olov Johansson, 1999. "Stated Preferences, Real Behaviour and Anchoring: Some Empirical Evidence," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 13(2), pages 235-248, March.
- Lee, Lung-Fei & Tyler, William G., 1978. "The stochastic frontier production function and average efficiency : An empirical analysis," Journal of Econometrics, Elsevier, vol. 7(3), pages 385-389, April.
- 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.
When requesting a correction, please mention this item's handle: RePEc:sin:wpaper:04-a008. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (HsiaoyunLiu)
If references are entirely missing, you can add them using this form.