HYPOTHETICAL BIAS IN DICHOTOMOUS CHOICE CONTINGENT VALUATION STUDIES

This paper uses a meta-analysis to explore the relationship between hypothetical bias and the price respondents are asked to pay. For public goods, the results clearly indicate a difference in the price elasticity between hypothetical and actual payment conditions. Since the bias increases for larger dollar amounts, any simple guidelines, such as NOAA's "divide by two" rule of thumb, could be misleading. Future attempts to calibrate contingent valuation responses should reflect this price sensitivity.


Issue Date:
2004
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/14506
Total Pages:
12
Series Statement:
ResEc Working Paper 2004-9




 Record created 2017-04-01, last modified 2017-12-06

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