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Evaluating the Validity of the Dichotomous Choice Question Format in Contingent Valuation

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  • John Loomis
  • Thomas Brown
  • Beatrice Lucero
  • George Peterson

Abstract

Hypothetical and actual cash willingness to pay (WTP) for an art print were elicited with dichotomous choice and open-ended question formats. Comparing hypothetical and actual dichotomous choice responses using both a likelihood ratio test and the method of convolutions suggests we reject equality at the 0.05 but not the 0.01 level. Hypothetical WTP was roughly two times actual WTP with the dichotomous choice format. There were no significant differences between the open-ended and dichotomous choice question formats when both were used to estimate hypothetical WTP or both used to estimate actual WTP. Copyright Kluwer Academic Publishers 1997

Suggested Citation

  • John Loomis & Thomas Brown & Beatrice Lucero & George Peterson, 1997. "Evaluating the Validity of the Dichotomous Choice Question Format in Contingent Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(2), pages 109-123, September.
    • Handle: RePEc:kap:enreec:v:10:y:1997:i:2:p:109-123
    DOI: 10.1023/A:1026403916622
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    References listed on IDEAS

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