When is some number really better than no number? On the optimal choice between non-market valuation methods

Alistair Munro

MPRA Paper from University Library of Munich, Germany

Abstract: Decision-makers have a wide variety of competing and complementary methods for non-market valuation, but there is little formal advice on the choice of method. I offer a formal approach, using a loss function (the mean square error) to compare contingent valuation, Citizens'Jury and methods where by intention only a portion of total value is estimated, when a) preferences vary across the population and b) methods are more or less susceptible to framing effects. Illustrative simulations suggest con-ditions under which the Citizens'Jury may dominate contingent valuation when framing effects are significant.

Keywords: contingent valuation; Citizens' Jury; optimal decisions; framing effects; cost-benefit analysis (search for similar items in EconPapers)
JEL-codes: D01 D61 Q51 (search for similar items in EconPapers)
Date: 2007-09-20
New Economics Papers: this item is included in nep-agr, nep-bec, nep-dcm and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:8978

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