Skip to Main Content
Paired comparison estimates of willingness to accept versus contingent valuation estimates of willingness to payAuthor(s): John B. Loomis; George Peterson; Patricia A. Champ; Thomas C. Brown; Beatrice Lucero
Source: Journal of economic behavior & organization. 35(4): 501-515
Publication Series: Miscellaneous Publication
PDF: View PDF (158 KB)
DescriptionEstimating empirical measures of an individual's willingness to accept that are consistent with conventional economic theory, has proven difficult. The method of paired comparison offers a promising approach to estimate willingness to accept. This method involves having individuals make binary choices between receiving a particular good or a sum of money. Willingness to accept can be inferred from the ranking of dollar amounts and the good of interest. Using the paired comparison approach, mean (median) willingness to accept for a private good is estimated at $59($52). Contingent valuation estimate of willingness to pay for the same good yields a mean (median) of $28($28). While these estimates are statistically different, the ratio of willingness to accept to willingness to pay is less than in most previous studies and closer to ratios found in actual cash experiments.
- You may send email to email@example.com to request a hard copy of this publication.
- (Please specify exactly which publication you are requesting and your mailing address.)
CitationLoomis, John B.; Peterson, George; Champ, Patricia A.; Brown, Thomas C.; Lucero, Beatrice. 1998. Paired comparison estimates of willingness to accept versus contingent valuation estimates of willingness to pay. Journal of economic behavior & organization. 35(4): 501-515
Keywordsprivate goods, experiment, contingent valuation, willingness to pay, validity
- Economic valuation by the method of paired comparison, with emphasis on evaluation of the transitivity axiom
- WTA estimates using the method of paired comparison: tests of robustness
- Value learning and the willingness to accept - willingness to pay disparity
XML: View XML