IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v100y2024i4p639-651.html
   My bibliography  Save this article

Fat Tails, Flat Tails, and Willingness to Pay: Kriström Revisited

Author

Listed:
  • Lynne Y. Lewis
  • Leslie Richardson
  • John C. Whitehead

Abstract

This article explores the limitations of two commonly used nonparametric approaches: the Turnbull estimator and the Kriström estimator. Fat tails and flat tails in the distribution of bid responses can result in a large divergence in willingness-to-pay estimates across different estimation methods. Since it is extremely rare to capture the tail of the distribution, we highlight the merit of an alternative approach using 120 datasets drawn from the literature. We calculate four nonparametric estimates of willingness to pay for each dataset. Meta-analysis is used to help determine when the Turnbull and Kriström estimators diverge.

Suggested Citation

  • Lynne Y. Lewis & Leslie Richardson & John C. Whitehead, 2024. "Fat Tails, Flat Tails, and Willingness to Pay: Kriström Revisited," Land Economics, University of Wisconsin Press, vol. 100(4), pages 639-651.
    • Handle: RePEc:uwp:landec:v:100:y:2024:i:4:p:639-651
    Note: DOI: https://doi.org/10.3368/le.100.4.060823-0052R
    as

    Download full text from publisher

    File URL: http://le.uwpress.org/cgi/reprint/100/4/639
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

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

    More about this item

    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

    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:uwp:landec:v:100:y:2024:i:4:p:639-651. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: the person in charge (email available below). General contact details of provider: http://le.uwpress.org/ .

    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.