The Provision Point Mechanism and Scenario Rejection in Contingent Valuation

Peter Groothuis and John Whitehead

Agricultural and Resource Economics Review, 2009, vol. 38, issue 2, 271-280

Abstract: The provision point mechanism mitigates free-riding behavior in economic experiments. In two contingent valuation method surveys, we implement the provision point design. We ask respondents for their perceptions about the success of the provision point mechanism. We find that respondents who believe that the provision point would not be met are more likely to say no to a contingent valuation dichotomous choice question. The scenario rejection that arises may result in biased willingness-to-pay estimates.

Date: 2009
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Journal Article: The Provision Point Mechanism and Scenario Rejection in Contingent Valuation (2009)
Working Paper: The Provision Point Mechanism and Scenario Rejection in Contingent Valuation (2008)
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