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A general model of starting point bias in double-bounded dichotomous contingent valuation surveys

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  • Chien, Yu-Lan
  • Huang, Cliff J.
  • Shaw, Daigee

Abstract

This paper develops a general model that addresses the starting point bias in the dichotomous choice evaluation data by incorporating both the anchoring effect and yea-saying bias. The model is applied to a contingent valuation study that evaluated the health benefits of air quality improvement in three major metropolitan areas in Taiwan. The empirical evidence shows a strong anchoring effect but a weak yea-saying bias. The results show a serious understated willingness to pay if the biases in anchoring and yea-saying are not controlled.
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  • Chien, Yu-Lan & Huang, Cliff J. & Shaw, Daigee, 2005. "A general model of starting point bias in double-bounded dichotomous contingent valuation surveys," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 362-377, September.
    • Handle: RePEc:eee:jeeman:v:50:y:2005:i:2:p:362-377
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