An Inferred Valuation Method

Jayson Lusk and Bailey Norwood ()

Land Economics, 2009, vol. 85, issue 3, 500-514

Abstract: Although estimates of people’s values for public goods are often needed to conduct costbenefit analysis, existing value elicitation methods are prone to a number of well-documented biases. We argue that some of these biases result because people derive utility from the act of saying they are willing to pay for a good. To counteract this phenomenon, we consider an approach that asks people to predict or infer others’ values for a good instead of asking people to state their own value. Both a conceptual model and results from a laboratory experiment lend support for the new approach.

JEL-codes: H41 Q51 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (75)

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