Repeated dichotomous choice formats for elicitation of willingness to pay: Simultaneous estimation and anchoring effect

Environmental and Resource Economics

Volumn 36, Issue 4, 2007, Pages 475-497

  Araña, Jorge E ^a   León, Carmelo J ^a  

^a UNIVERSITY OF LAS PALMAS DE GRAN CANARIA   (Spain)

Author keywords

Anchoring effects; Bayesian methods; Contingent valuation; Endogeneity; Repeated dichotomous choice; Simultaneous equations

Indexed keywords

DATA ACQUISITION; ERROR CORRECTION; MATHEMATICAL MODELS; NUMERICAL METHODS;

BAYESIAN TECHNIQUES; BINARY QUESTIONS; GIBBS SAMPLING; WELFARE ESTIMATES;

ENVIRONMENTAL ENGINEERING;

BAYESIAN ANALYSIS; CONTINGENT VALUATION; ESTIMATION METHOD; NUMERICAL MODEL; PRICE DYNAMICS; WILLINGNESS TO PAY;

EID: 33847644955     PISSN: 09246460     EISSN: None     Source Type: Journal    
DOI: 10.1007/s10640-006-9038-7     Document Type: Article

References (51)

1. Alberini, A., B.Kanninen and R. T.Carson (1997), 'Modeling Response Incentive Effects in Dichotomous Choice Contingent Valuation Data', Land Economics 73(3), 309-324.
2. Albert, J. H. and S.Chib (1993), 'Bayesian Analysis of Binary and Polichotomous Response Data', Journal of American Statistical Association 88, 669-679.
3. Allenby, G. and P.Rossi (1999), 'Marketing Models of Consumer Heterogeneity', Journal of Econometrics 89, 57-78.
4. Araña, J. E. and C. J.León (2002), 'Willingness to Pay for Health Risk Reduction in the Context of Altruism', Health Economics 11(7), 623-635.
5. Araña, J. E. and C. J.León (2005a), 'Flexible Mixture Distribution Modelling of Dichotomous Choice Contingent Valuation with Heterogeneity', Journal of Environmental Economics and Management 50, 170-178.
6. Araña, J. E. and C. J.León (2005b), 'Bayesian Estimation of Dichotomous Choice Contingent Valuation with Follow-Up', in R.Scarpa and A.Alberini, eds., Applications of Simulation Methods in Environmental Resource Economics. Dordrecht, The Netherlands: Springer.
7. Arrow, K., R.Solow, P. Portney, E.Leamer, R. Radner and H.Schuman (1993), 'Report of the National Oceanic and Athmospheric Administration Panel on Contingent Valuation', Federal Register 58, 4602-4614.
8. Bateman, I. J., D. Burgess, W. G. Hutchinson and D. I. Matthews (2004), 'Learning Effects in Repeated Dichotomous Choice Contingent Valuation Questions', Paper presented at the Royal Economic Society Annual Conference 2004.
9. Bateman, I. J., I. H.Langford, A. P.Jones and G. N.Kerr (2001), 'Bound and Path Effects in Double Bounded and Triple Bounded Dichotomous Choice Contingent Valuation', Resource and Energy Economics 23, 191-213.
10. Bettman, J. R., M. F.Luce and J. W.Payne (1998), 'Constructive Consumer Choice Processes', Journal of Consumer Research 22, 187-217.
11. Blundell, R. W. and R. J.Smith (1994), 'Coherency and Estimation in Simultaneous Models with Censoring and Qualitative Dependent Variables', Journal of Econometrics 64, 355-373.
12. Burton, A. C., K. S.Carson, S. M.Chilton and W. G.Hutchinson (2003), 'An Experimental Investigation of Explanations for Inconsistencies in Responses to Second Offers in Double Referenda', Journal of Environmental Economics and Management 46, 472-489.
13. Cameron, T. A. (1988), 'A New Paradigm for Valuing Non-Market Goods Using Referendum Data: Maximum Likelihood Estimation by Censored Logistic Regression', Journal of Environmental Economics and Management 15, 355-379.
14. Carson, R., T. Groves and M. Machina (1999), 'Incentive and Informational Properties of Preference Questions', Plenary Address to the European Association of Resource and Environmental Economists, Oslo, Norway, June.
15. Cameron, T. A. and J.Quiggin (1994), 'Estimation Using Contingent Valuation Data from a 'Dichotomous Choice with Follow-up' Questionnaire', Journal of Environmental Economics and Management 27(3), 218-234.
16. Chalfant, J. A. (1993), 'Estimation of Demand Systems Using Informative Priors', American Journal of Agricultural Economics 75(5), 1200-1206.
17. Chib, S. (1995), 'Marginal Likelihood from the Gibbs Output', Journal of American Statistical Association 90, 1313-1321.
18. Chib, S. (1992), 'Bayes Inference in the Tobit Censored Regression Model', Journal of Econometrics 51, 79-99.
19. Cooper, J. C. (1993), 'Optimal Bid Selection for Dichotomous Contingent Valuation Surveys', Journal of Environmental Economics and Management 24, 25-40.
20. Cooper, J. C. and W. M. Hanemann (1995), 'Referendum Contingent Valuation: How Many Bounds Are Enough?', USDA Economic Research Service, Food and Consumer Economics Division, Working Paper. May, 1995.
21. Cooper, J. C., W. M.Hanemann and G.Signorello (2002), 'One-and-One-Half-Bound Dichotomous Choice Contingent Valuation', The Review of Economics and Statistics 84(4), 742-750.
22. DeShazo, J. R. (2002), 'Designing Transactions without Framing Effects in Iterative Question Formats', Journal of Environmental Economics and Management 44(1), 123-143.
23. Fernández, C., C. J.León, M.Steel and F. J.Vázquez-Polo (2004), 'Bayesian Analysis of Interval Data Contingent Valuation Models', Journal of Business Economics and Statistics 22(4), 431-442.
24. Gelfand, A. E. and A. F. M.Smith (1990), 'Sampling Based Approaches to Calculating Marginal Densities', Journal of the American Statistical Association 85, 398-409.
25. Grether, D. M. and C. R.Plott (1979), 'Economic Theory of Choice and the Preference Reversal Phenomenon', American Economic Review 69, 623-638.
26. Greene, W. H. (2003), Econometric Analysis, 5th edn. Englewood Cliffs, NJ: Prentice Hall.
27. Hanemann, W. M., J.Loomis and B.Kanninen (1991), 'Statistical Efficiency of Double Bounded Dichotomous Choice Contingent Valuation', American Journal of Agricultural Economics 73(11), 1255-1263.
28. Hanemann, W. M. and B. Kanninen (1999), 'The Statistical Analysis of Discrete-Response', in I. Bateman and K. Willis, eds., Valuing the Environment Preferences: Theory and Practice of the Contingent Valuation Method in the US, EC and Developing Countries. Oxford: Oxford University Press.
29. Hanemann, M. W. (1984), 'Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses', American Journal of Agricultural Economics 66, 103-118.
30. Herriges, J. A. and J. F.Shogren (1996), 'Starting Point Bias in Dichotomous Choice Valuation with Follow-Up Questioning', Journal of Environmental Economics and Management 30, 112-131.
31. Huber, J. an K. Train (2001), 'On the Similarity of Classical and Bayesian Estimates of Individual Mean Partworths', Marketing Letters 12(3), 259-269.
32. Kass, R. and A.Raftery (1995), 'Bayes Factors', Journal of the American Statistical Association 90, 773-795.
33. Kochi, I., B. Hubbell and R. Kramer (2006), 'An Empirical Bayes Approach to Combining and Comparing Estimates of the Value of a Statistical Life for Environmental Policy Analysis', Environmental and Resource Economics 34(3), 385-406.
34. Koop, G. and L.Tole (2004), 'Measuring the Health Effects of Air Pollution: To What Extent Can We Really Say that People are Dying from Bad Air?', Journal of Environmental Economics and Management 47, 30-54.
35. Langford, I. H., I. J.Bateman and H. D.Langford (1996), 'A Multilevel Modelling Approach to Triple-bounded Dichotomous Choice Contingent Valuation', Environmental and Resource Economics 7(3), 197-211.
36. Layton, D. F. and R.Levine (2003), 'How Much Does the Far Future Matter? A Hierarchical Bayesian Analysis of the Public's Willingness to Mitigate Ecological Impacts of Climate Change', Journal of the American Statistical Association 98(463), 533-544.
37. Layton, D. F. and R.Levine (2005), 'Bayesian Approaches to Modeling Stated Preference Data', in R.Scarpa and A.Alberini, eds., Applications of Simulation Methods in Environmental and Resource Economics. Dordrecht, The Netherlands: Springer.
38. Layton, D. and T.Lee (2006), 'Embracing Model Uncertainty: Strategies for Response Pooling and Model Averaging', Environmental and Resource Economics 34, 51-85.
39. Leon, R. and C. J.Leon (2003), 'Single or Double Bounded Contingent Valuation? A Bayesian Test', Scottish Journal of Political Economy 50(2), 174-178.
40. Li, K. (1998), 'Bayesian Inference in a simultaneous Equation Model with Limited Dependent Variables', Journal of Econometrics 85, 387-400.
41. Lindley, D. V. (1965), Introduction to Probability and Statistics from a Bayesian Viewpoint. Vol. 1: Probability, Vol. 2: Inference, Cambridege: Cambridge University Press.
42. List, J. (2003), 'Does Market Experience Eliminate Market Anomalies?', Quarterly Journal of Economics 118(1), 41-71.
43. McFadden, D. (1994), 'Contingent Valuation and Social Choice', American Journal of Agricultural Economics 76, 689-708.
44. Payne, J. W., J. R.Bettman and D. A.Schakde (1999), 'Measuring Constructed Preferences: Towards a Building Code', Journal of Risk and Uncertainty 19, 243-270.
45. Rigby, D. and M.Burton (2006), 'Modeling Disinterest and Dislike: A Bounded Bayesian Mixed Logit Model of the UK Market for GM Food', Environmental and Resource Economics 33(4), 485-509.
46. Scarpa, R. and I.Bateman (2000), 'Efficiency Gains Afforded by Improved Bid Design Versus Follow-Up Valuation Questions in Discrete Choice CV Studies', Land Economics 76(2), 299-311.
47. Tanner, T. A. and W. H.Wong (1987), 'The Calculation of Posterior Distributions by Data Augmentation', Journal of American Statistical Association 82, 528-549.
48. Tversky, A., P.Slovic and D.Kahneman (1990), 'The Causes of Preference Reversal', American Economic Review 80(1), 204-217.
49. Tversky, A. and D.Kahneman (1981), 'The Framing of Decisions and the Psychology of Choice', Science 211, 453-458.
50. Whitehead, J. C. (2002), 'Incentive Incompatibility and Starting-Point Bias in Iterated Valuation Questions', Land Economics 72(2), 285-297.
51. Zellner, A. (1971), Introduction to Bayesian Inference in Econometrics, New York: Wiley.