Skip to Main Content
Accounting for respondent uncertainty to improve willingness-to-pay estimatesAuthor(s): Rebecca Moore; Richard C. Bishop; Bill Provencher; Patricia A. Champ
Source: Canadian Journal of Agricultural Economics. 58(3): 381-401.
Publication Series: Miscellaneous Publication
PDF: View PDF (224.59 KB)
DescriptionIn this paper, we develop an econometric model of willingness to pay (WTP) that integrates data on respondent uncertainty regarding their own WTP. The integration is utility consistent, there is no recoding of variables, and no need to calibrate the contingent responses to actual payment data, so the approach can "stand alone." In an application to a valuation study related to whooping crane restoration, we find that this model generates a statistically lower expected WTP than the standard contingent valuation (CV) model. Moreover, the WTP function estimated with this model is not statistically different from that estimated using actual payment data suggesting that, when properly analyzed using data on respondent uncertainty, CV decisions can simulate actual payment decisions. This method allows for more reliable estimates of WTP that incorporate respondent uncertainty without the need for collecting comparable actual payment data.
- You may send email to firstname.lastname@example.org to request a hard copy of this publication.
- (Please specify exactly which publication you are requesting and your mailing address.)
- We recommend that you also print this page and attach it to the printout of the article, to retain the full citation information.
- This article was written and prepared by U.S. Government employees on official time, and is therefore in the public domain.
CitationMoore, Rebecca; Bishop, Richard C.; Provencher, Bill; Champ, Patricia A. 2010. Accounting for respondent uncertainty to improve willingness-to-pay estimates. Canadian Journal of Agricultural Economics. 58(3): 381-401.
Keywordsaccounting, econometric model, willingness to pay (WTP)
- A comparison of approaches to mitigate hypothetical bias
- Which response format reveals the truth about donations to a public good?
- Oak woodland economics: a contingent valuation of conversion alternatives
XML: View XML