IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v29y1997i1p79-84.html
   My bibliography  Save this article

Validity of open-ended and payment scale approaches to eliciting willingness to pay

Author

Listed:
  • Cam Donaldson
  • Ruth Thomas
  • David Torgerson

Abstract

The open-ended and payment scale approaches to eliciting willingness to pay (WTP) valuations are compared. Use of the payment scale led to a higher response rate, a higher rate of completion of the WTP question, higher mean and median WTP values, a stronger association between WTP and ability to pay and a higher R2 in regression analysis of WTP on several independent variables. Taking these results in combination, it can be inferred that the payment scale technique leads to more valid WTP values than use of the open-ended approach.

Suggested Citation

  • Cam Donaldson & Ruth Thomas & David Torgerson, 1997. "Validity of open-ended and payment scale approaches to eliciting willingness to pay," Applied Economics, Taylor & Francis Journals, vol. 29(1), pages 79-84.
    • Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:79-84
    DOI: 10.1080/000368497327425
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327425
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/000368497327425?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Schkade David A. & Payne John W., 1994. "How People Respond to Contingent Valuation Questions: A Verbal Protocol Analysis of Willingness to Pay for an Environmental Regulation," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 88-109, January.
    2. Michael Hanemann & John Loomis & Barbara Kanninen, 1991. "Statistical Efficiency of Double-Bounded Dichotomous Choice Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1255-1263.
    3. Johannesson, Magnus & Jonsson, Bengt & Borgquist, Lars, 1991. "Willingness to pay for antihypertensive therapy -- results of a Swedish pilot study," Journal of Health Economics, Elsevier, vol. 10(4), pages 461-473.
    4. Jones, Andrew M., 1991. "An econometric investigation of low birth weight in the United States," Journal of Health Economics, Elsevier, vol. 10(3), pages 381-381, October.
    5. V. Kerry Smith & William H. Desvousges & Ann Fisher, 1986. "A Comparison of Direct and Indirect Methods for Estimating Environmental Benefits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 280-290.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gustafsson-Wright, Emily & Asfaw, Abay & van der Gaag, Jacques, 2009. "Willingness to pay for health insurance: An analysis of the potential market for new low-cost health insurance products in Namibia," Social Science & Medicine, Elsevier, vol. 69(9), pages 1351-1359, November.
    2. Powe, N. A. & Bateman, I. J., 2003. "Ordering effects in nested 'top-down' and 'bottom-up' contingent valuation designs," Ecological Economics, Elsevier, vol. 45(2), pages 255-270, June.
    3. He, Senhui & Jordan, Jeffrey L. & Florkowski, Wojciech J., 2003. "Income Reminder And The Divergence Between Willingness-To-Pay Estimates Associated With Dichotomous Choice And Open-Ended Elicitation Formats," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35193, Southern Agricultural Economics Association.
    4. Ndebele, Tom & Forgie, Vicky, 2017. "Estimating the economic benefits of a wetland restoration programme in New Zealand: A contingent valuation approach," Economic Analysis and Policy, Elsevier, vol. 55(C), pages 75-89.
    5. Kerr, Geoffrey N., 2001. "Contingent Valuation Elicitation Effects: Revisiting the Payment Card," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125686, Australian Agricultural and Resource Economics Society.
    6. Cam Donaldson & Phil Shackley & Mona Abdalla, 1997. "Using Willingness To Pay To Value Close Substitutes: Carrier Screening for Cystic Fibrosis Revisited," Health Economics, John Wiley & Sons, Ltd., vol. 6(2), pages 145-159, March.
    7. Tsigkou, Stavroula & Klonaris, Stathis, 2020. "Eliciting Farmers' Willingness to Pay for Innovative Fertilizer Against Soil Salinity: Comparison of Two Methods in a Field Survey," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 9, December.
    8. Hanemann, W. Michael & Kanninen, Barbara, 1996. "The Statistical Analysis Of Discrete-Response Cv Data," CUDARE Working Papers 25022, University of California, Berkeley, Department of Agricultural and Resource Economics.
    9. Fu, Tsu-Tan & Lin, Yih-Ming & Huang, Chung L., 2011. "Willingness to pay for obesity prevention," Economics & Human Biology, Elsevier, vol. 9(3), pages 316-324, July.
    10. Shackley, Phil & Donaldson, Cam, 2002. "Should we use willingness to pay to elicit community preferences for health care?: New evidence from using a 'marginal' approach," Journal of Health Economics, Elsevier, vol. 21(6), pages 971-991, November.
    11. Ryan, Mandy & Scott, David A. & Donaldson, Cam, 2004. "Valuing health care using willingness to pay: a comparison of the payment card and dichotomous choice methods," Journal of Health Economics, Elsevier, vol. 23(2), pages 237-258, March.
    12. Nick Hanley & Mandy Ryan & Robert Wright, 2003. "Estimating the monetary value of health care: lessons from environmental economics," Health Economics, John Wiley & Sons, Ltd., vol. 12(1), pages 3-16, January.
    13. Ryan, Mandy & San Miguel, Fernando, 2000. "Testing for consistency in willingness to pay experiments," Journal of Economic Psychology, Elsevier, vol. 21(3), pages 305-317, June.
    14. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    15. Rashmita Basu, 2013. "Willingness-to-pay to prevent Alzheimer’s disease: a contingent valuation approach," International Journal of Health Economics and Management, Springer, vol. 13(3), pages 233-245, December.
    16. Verbic, Miroslav & Slabe-Erker, Renata, 2009. "An econometric analysis of willingness-to-pay for sustainable development: A case study of the Volcji Potok landscape area," Ecological Economics, Elsevier, vol. 68(5), pages 1316-1328, March.
    17. Hope Corman & Dhaval Dave & Nancy E. Reichman, 2018. "Evolution of the Infant Health Production Function," Southern Economic Journal, John Wiley & Sons, vol. 85(1), pages 6-47, July.
    18. Franz Hackl & Gerald J. Pruckner, 2005. "Warm glow, free‐riding and vehicle neutrality in a health‐related contingent valuation study," Health Economics, John Wiley & Sons, Ltd., vol. 14(3), pages 293-306, March.
    19. Nayga, Rodolfo M., Jr. & Aiew, Wipon & Woodward, Richard T., 2004. "Willingness to Pay for Irradiated Food: A Non Hypothetical Market Experiment," 84th Seminar, February 8-11, 2004, Zeist, The Netherlands 24995, European Association of Agricultural Economists.
    20. Catherine Heyes & Anthony Heyes, 1999. "Willingness to Pay Versus Willingness to Travel: Assessing the Recreational Benefits from Dartmoor National Park," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 124-139, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:29:y:1997:i:1:p:79-84. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.