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Irrational Responses in Contingent Valuation and Their Potential Impacts on Mean Stated Willingness-to-pay

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Listed:
  • He, Senhui
  • Florkowski, Wojciech J.
  • Jordan, Jeffrey L.

Abstract

This paper addresses the issue of rationality of responses in contingent valuation. We found a significant portion of respondents stated a positive willingness-to-pay for a project they perceived to be worthless. The irrational responses had a significant impact on the mean stated willingness-to-pay and the effect can not be removed by simply excluding the those observations from estimation. The dichotomous-choice elicitation format helps to mitigate the effect of the irrational responses, but can not completely solve the problem.

Suggested Citation

  • He, Senhui & Florkowski, Wojciech J. & Jordan, Jeffrey L., 2002. "Irrational Responses in Contingent Valuation and Their Potential Impacts on Mean Stated Willingness-to-pay," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24914, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae02:24914
    DOI: 10.22004/ag.econ.24914
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    References listed on IDEAS

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