INCENTIVE COMPATIBLE REFERENDA AND THE VALUATION OF ENVIRONMENTAL GOODS
Laura Taylor
Agricultural and Resource Economics Review, 1998, vol. 27, issue 2, 8
Abstract:
Recent attempts to test the validity of the contingent valuation method have relied on laboratory-type experiments. In these experiments, willingness to pay responses in hypothetical choice experiments are compared with responses from choice experiments requiring actual payments. Often evidence of hypothetical bias is found. Critical for these experimental tests of hypothetical surveys is that the methodology used to elicit willingness to pay from subjects in the real-payment experiment be demand revealing. If it is not, then differences in responses to hypothetical and real valuation questions could be due to free-riding in the real-payment survey and not due to hypothetical bias in the hypothetical survey. This paper reports on experiments that implement a theoretically incentive-compatible revelation mechanism (a closed referendum) to elicit responses to valuation questions in both hypothetical and real experiments. As in earlier studies, evidence of an upward hypothetical bias is found.
Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32)
Downloads: (external link)
https://ageconsearch.umn.edu/record/31521/files/27020132.pdf (application/pdf)
Related works:
Journal Article: Incentive Compatible Referenda and the Valuation of Environmental Goods (1998) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ags:arerjl:31521
DOI: 10.22004/ag.econ.31521
Access Statistics for this article
More articles in Agricultural and Resource Economics Review from Northeastern Agricultural and Resource Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().