Journal #J-01/1999 |
Willingness-to-Pay Estimates Using the Double-Bounded Dichotomous-Choice Contingent Valuation Format: A Test for Validity and Precision in a Bayesian Framework
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Don Mc Leod1 & Olvar Bergland |
Department of Economics & Reesource Management
Agricultural University of Norway
PO Box 5033, N-1432 Ås, Norway
http://www.nlh.no/ior/
e-mail: olvar.bergland@ior.nlh.no |
(1) Don McLeod, Dept. of Agricultural and Applied Economics, University of Wyoming, ( http://www.uwyo.edu/ag/agecon/pageone.htm ),
e-mail: dmcleod@uwyo.edu
McLeod, D., & O. Bergland (1999): "Willingness-to-Pay Estimates Using the Double-Bounded Dichotomous-Choice Contingent Valuation Format: A Test for Validity and Precision in a Bayesian Framework", Land Economics, 75(1):115-125.
Abstract:
The double-bounded dichotomous choice contingent valuation format is thought to yield more precise estimates. Questions remain about it validity. The initial bid may represent information with which respondents update their willingness-to-pay. A Bayesian model of respondent decision making is estimated for two data sets. The results indicate updating or shifts in respondents willingness-to-pay between iterated valuations. Nonparametric testing of the welfare estimates reveals that the model incorporating updating yields different values from the standard model. The expected increases in the precision of the welfare losses are lost when updating occur.
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