How Does the Cost Vector Affect Payment Consequentiality in a Binary Choice Contingent Valuation Survey?

Pierre-Alexandre Mahieu, Romain Crastes dit Sourd, Pascal Gastineau, Benoît Chèze and Andrea Taylor

Land Economics, 2024, vol. 100, issue 2, 245-255

Abstract: Payment consequentiality should improve the validity of welfare estimates in stated preference surveys according to a growing body of research. In this article, we study whether the type of amounts (precision, parity) that make up the cost vector affects payment consequentiality. Our experiment consists of a binary choice survey on renewable energy where the cost amounts range between €0.5 and €25. For small amounts, we find that precision increases payment consequentiality. For larger amounts, even numbers perform better than odd numbers. Our results suggest that the type of cost amount (e.g., even/odd, general/precise) should be carefully considered by the analyst.

JEL-codes: Q25 Q51 (search for similar items in EconPapers)
Date: 2024
Note: DOI: https://doi.org/10.3368/le.100.2.111821-0135R1
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