Cognitive Ability and Scale Bias in the Contingent Valuation Method

Henrik Andersson and Mikael Svensson

No 2006:2, Working Papers from Swedish National Road & Transport Research Institute (VTI)

Abstract: This study investigates whether or not the scale bias found in contingent valuation (CVM) studies on mortality risk reductions is a result of cognitive constraints among respondents. Scale bias refers to insensitivity and non near-proportionality of the respondents' willingness to pay (WTP) to the size of the risk reduction. Two hundred Swedish students participated in an experiment where their cognitive ability was tested before they took part in a CVM-study where they were asked about their WTP to reduce bus-mortality risk. The results imply that WTP answers from respondents with a higher cognitive ability are less flawed by scale bias.

Keywords: Cognitive Ability; Contingent Valuation; Mortality Risk; Near-proportionality; Scale Bias (search for similar items in EconPapers)
JEL-codes: D80 I10 Q51 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2006-05-15
New Economics Papers: this item is included in nep-cbe
Note: This paper has been revised and has been replaced by Working Paper 2007:1.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Environmental and Resource Economics, 2008, pages 481-495.

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Related works:
Journal Article: Cognitive ability and scale bias in the contingent valuation method (2008)
Working Paper: Cognitive Ability and Scale Bias in the Contingent Valuation Method (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:vtiwps:2006_002

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