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Starting-point bias and respondent uncertainty in dichotomous choice contingent valuation surveys

Author

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  • Emmanuel Flachaire

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Guillaume Hollard

    (OEP - UPEM - Université Paris-Est Marne-la-Vallée)

Abstract

In this article, we develop a dichotomous choice model with follow-up questions that describes the willingness to pay being uncertain in an interval. The initial response is subject to starting point bias. Our model provides an alternative interpretation of the starting point bias in the dichotomous choice valuation surveys. Using the Exxon Valdez survey, we show that, when uncertain, individuals tend to answer "yes".

Suggested Citation

  • Emmanuel Flachaire & Guillaume Hollard, 2007. "Starting-point bias and respondent uncertainty in dichotomous choice contingent valuation surveys," Post-Print halshs-00175925, HAL.
    • Handle: RePEc:hal:journl:halshs-00175925
    DOI: 10.1016/j.reseneeco.2007.05.003
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00175925
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    References listed on IDEAS

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    Keywords

    starting point bias; preference uncertainty; contingent valuation;
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