Abstract
The statistical efficiency of conventional dichotomous choice contingent valuation surveys can be improved by asking each respondent a second dichotomous choice question which depends on the response to the first question—if the first response is “yes,” the second bid is some amount greater than the first bid; while, if the first response is “no,” the second bid is some amount smaller. This “double-bounded” approach is shown to be asymptotically more efficient than the conventional, “singlebounded” approach. Using data from a survey of Californians regarding their willingness to pay for wetlands in the San Joaquin Valley, we show that, in a finite sample, the gain in efficiency can be very substantial.
Original language | English (US) |
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Pages (from-to) | 1255-1263 |
Number of pages | 9 |
Journal | American Journal of Agricultural Economics |
Volume | 73 |
Issue number | 4 |
DOIs | |
State | Published - Nov 1991 |
Externally published | Yes |
Keywords
- Contingent valuation
- Wetlands
- Wildlife
- Willingness to pay
ASJC Scopus subject areas
- Agricultural and Biological Sciences (miscellaneous)
- Economics and Econometrics