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Research Note: Exaggeration Bias-Corrected Contingent Valuation Method: The Case of Olle Trail

Author

Listed:
  • Won Seok Lee

    (Department of Convention Management, Kyung Hee University, Seoul, Korea)

  • Choong-Ki Lee

    (Department of Tourism Management, Kyung Hee University, Seoul, Korea)

  • Yooshik Yoon

    (Department of Convention Management, College of Hotel and Tourism Management, Kyung Hee University, 26 Kyunghee-daero, Dongdaemoon-gu, Seoul 02447, Korea)

  • Jihee Kim

    (School of Business, North Carolina Central University, Durham, NC, USA)

Abstract

Researchers have criticized the traditional contingent valuation method (CVM) due to its potential response bias. To address this bias, several studies have employed improved CVM survey designs. When respondents disguise the truth, non-sampling errors are created that cannot be corrected by these elaborate survey modifications. To reduce this type of non-sampling error, Park and MacLachlan (2008) suggested the exaggeration bias-corrected (EBC) CVM, which assumes a functional mechanism between real and spurious willingness to pay (WTP). The authors verify the effectiveness of the EBC-CVM in non-sampling error reduction, which in turn derives more error-corrected economic value. Few studies have employed the EBC-CVM in a tourism context. The main goals of this study are to introduce EBC-CVM and to test its validity in a tourism study. The results indicate that EBC-CVM contributes to the reduction of non-sampling errors. The implications of the findings are discussed.

Suggested Citation

  • Won Seok Lee & Choong-Ki Lee & Yooshik Yoon & Jihee Kim, 2015. "Research Note: Exaggeration Bias-Corrected Contingent Valuation Method: The Case of Olle Trail," Tourism Economics, , vol. 21(6), pages 1323-1330, December.
    • Handle: RePEc:sae:toueco:v:21:y:2015:i:6:p:1323-1330
    DOI: 10.5367/te.2014.0408
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    References listed on IDEAS

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    1. Lee, Choong-Ki & W. Mjelde, James, 2007. "Valuation of ecotourism resources using a contingent valuation method: The case of the Korean DMZ," Ecological Economics, Elsevier, vol. 63(2-3), pages 511-520, August.
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    7. Joo Heon Park & Douglas L. MacLachlan, 2008. "Estimating Willingness to Pay with Exaggeration Bias-Corrected Contingent Valuation Method," Marketing Science, INFORMS, vol. 27(4), pages 691-698, 07-08.
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    Cited by:

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