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Interval bidding in a distribution elicitation format

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  • Pierre-Alexandre Mahieu
  • François-Charles Wolff
  • Jason Shogren
  • Pascal Gastineau

Abstract

Interval bidding allows people to report a range of values for a non-market good. Herein, we allow people to choose their distribution over this range endogenously. We consider a multiplicative error model explaining the willingness to pay (WTP) which is estimated using a feasible generalized least squares estimator. We apply our framework to a representative sample of the French population who were asked about the valuation of a bear conservation programme. We find that most participants prefer stating their WTP as a range rather than a point, but the shape of the distribution greatly varies across people. Our results support the use of the interval bidding with endogenous distribution approach in valuation studies.

Suggested Citation

  • Pierre-Alexandre Mahieu & François-Charles Wolff & Jason Shogren & Pascal Gastineau, 2017. "Interval bidding in a distribution elicitation format," Applied Economics, Taylor & Francis Journals, vol. 49(51), pages 5200-5211, November.
    • Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5200-5211
    DOI: 10.1080/00036846.2017.1302065
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    Cited by:

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    2. Champonnois, Victor & Chanel, Olivier & Makhloufi, Khaled, 2018. "Reducing the anchoring bias in multiple question CV surveys," Journal of choice modelling, Elsevier, vol. 28(C), pages 1-9.
    3. Moritz A. Drupp & Zachary M. Turk & Ben Groom & Jonas Heckenhahn, 2024. "Limited Substitutability, Relative Price Changes and the Uplifting of Public Natural Capital Values," CESifo Working Paper Series 11156, CESifo.
    4. Persichina, Marco & Kriström, Bengt, 2022. "Self-selected intervals in psycho-physic experiments and the measurement of willingness to pay," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 98(C).
    5. Voltaire, Louinord, 2017. "Pricing Future Nature Reserves Through Contingent Valuation Data," Ecological Economics, Elsevier, vol. 135(C), pages 66-75.
    6. Schlag, Karl H. & van der Weele, Joël J., 2015. "A method to elicit beliefs as most likely intervals," Judgment and Decision Making, Cambridge University Press, vol. 10(5), pages 456-468, September.
    7. repec:cup:judgdm:v:10:y:2015:i:5:p:456-468 is not listed on IDEAS
    8. Luigi La Riccia & Vanessa Assumma & Marta Carla Bottero & Federico Dell’Anna & Angioletta Voghera, 2023. "A Contingent Valuation-Based Method to Valuate Ecosystem Services for a Proactive Planning and Management of Cork Oak Forests in Sardinia (Italy)," Sustainability, MDPI, vol. 15(10), pages 1-28, May.

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    More about this item

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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