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Valuing Urban Lakeview Amenities Using Implicit and Contingent Markets

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  • Glenn Blomquist

    (Department of Economics and Martin School of Public Administration, University of Kentucky)

Abstract

Amenities influence individual location decisions and affect overall social well being. This comparative study focuses on the potential complementarity of implicit and contingent market approaches to valuing amenities. Lakeshore residents in Chicago were surveyed to collect data to estimate implied housing hedonic values and contingent values for two view-related amenities. The consumers in the housing market and the bidders in the contingent market are the exact same people. Presumably differences in estimates are primarily due to the different approaches. For willingness to pay, contingent values are found to be within a factor of two of implicit values. The difference is consistent with sorting which occurs in the housing market. The results provide further evidence of progress in valuing amenities.

Suggested Citation

  • Glenn Blomquist, 1988. "Valuing Urban Lakeview Amenities Using Implicit and Contingent Markets," Urban Studies, Urban Studies Journal Limited, vol. 25(4), pages 333-340, August.
    • Handle: RePEc:sae:urbstu:v:25:y:1988:i:4:p:333-340
    DOI: 10.1080/00420988820080431
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    References listed on IDEAS

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    1. Jeanne Dachary-Bernard & Jean Cavailhès, 2004. "Une évaluation économique du paysage ; suivi d'un commentaire de Jean Cavailhès," Économie et Statistique, Programme National Persée, vol. 373(1), pages 57-80.
    2. Uchenna N. Akpom, 1996. "Housing Attributes And The Cost Of Private Rental Buildings In Lagos Nigeria: A Hedonic Price Analysis," The Review of Regional Studies, Southern Regional Science Association, vol. 26(3), pages 351-365, Winter.
    3. Zhang, Fan & Fogarty, James, 2015. "Nonmarket Valuation of Water Sensitive Cities: Current Knowledge and Issues," Working Papers 207694, University of Western Australia, School of Agricultural and Resource Economics.
    4. Richard T. Carson & Nicholas E. Flores & Kerry M. Martin & Jennifer L. Wright, 1996. "Contingent Valuation and Revealed Preference Methodologies: Comparing the Estimates for Quasi-Public Goods," Land Economics, University of Wisconsin Press, vol. 72(1), pages 80-99.
    5. Jeanne Dachary-Bernard, 2004. "Une évaluation économique du paysage : une application de la méthode des choix multi-attributs aux Monts d'Arrée," Post-Print hal-00450861, HAL.
    6. Ladenburg, Jacob & Dubgaard, Alex, 2007. "Willingness to pay for reduced visual disamenities from offshore wind farms in Denmark," Energy Policy, Elsevier, vol. 35(8), pages 4059-4071, August.
    7. Blomquist, Glenn C. & Whitehead, John C., 1998. "Resource quality information and validity of willingness to pay in contingent valuation," Resource and Energy Economics, Elsevier, vol. 20(2), pages 179-196, June.
    8. Sam Il Myoung Hwang & Leo Ma, 2023. "Top‐floor discounts in residential buildings: Evidence from South Korea," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(2), pages 441-469, March.

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