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Sources of Error in Contingent Valuation
Problems with hypothetical bias have become a central issue in the application of the contingent valuation methods. Hypothetical bias is the difference between the distribution of hypothetical bids obtained from a survey and the distribution of bids that would obtain in areal world incentive compatible market setting. The purpose of this paper is to examine sources of hypothetical bias in a field application of contingent valuation methods. The paper identifies four possible problem area sources of hypothetical bias: 1) large positive outlier bids, 2) refusals to bid, 3) viewing public goods as joint products, and 3) survey context. In the field application, residents of the Denver metropolitan area were asked to value air quality there. The paper discusses the survey protocol used for examining these issues and presents the data analysis and results. Suggestions and recommendations for future research are made.
1. Benefits Analysis
1. Benefits Analysis - Valuation
1. Benefits Analysis - Valuation - Stated Preference
1. Benefits Analysis - Valuation - Stated Preference - Contingent ValuationEnvironmental Media:
a. Air - TroposphericAuthors:
McClelland, Gary H.
Schulze, William D.
Irwin, Julie R.
Schenk, DavidEPA Project Officer/ Manager:
Carlin, AlanGeographic Area:Study Purpose: Empirical Application, Methodology Development & Evaluation
- Participating Organizations
Colorado at Boulder, University of, Department of Psychology and Center for Research on Judgment and Policy Address:
City: Boulder State: CO ZIP: 80309
Environmental Protection Agency
Office of Policy, Planning and Evaluation
City: Washington State: DC ZIP:
- Report Details
FinalDate: 12/01/1990Number of Pages: 39Grant/Contract #: CR-812054
- How to Obtain Report