Modifying willingness to pay estimates where respondents mis-report their preferences

Kelvin George Balcombe, A. Bailey, A. Chalak and Iain Fraser ()

Applied Economics Letters, 2008, vol. 15, issue 5, pages 327-330

Abstract: The likelihood for the Logit model is modified, so as to take account of uncertainty associated with mis-reporting in stated preference experiments estimating willingness to pay (WTP). Monte Carlo results demonstrate the bias imparted to estimates where there is mis-reporting. The approach is applied to a data set examining consumer preferences for food produced employing a nonpesticide technology. Our modified approach leads to WTP that are substantially downwardly revised.

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