Statistical efficiency of double-bounded dichotomous choice contingent valuation

Michael Hanemann; John Loomis; Barbara Kanninen

doi:10.2307/1242453

Statistical efficiency of double-bounded dichotomous choice contingent valuation

Michael Hanemann, John Loomis, Barbara Kanninen

Research output: Contribution to journal › Article › peer-review

1173 Scopus citations

Abstract

The statistical efficiency of conventional dichotomous choice contingent valuation surveys can be improved by asking each respondent a second dichotomous choice question which depends on the response to the first question—if the first response is “yes,” the second bid is some amount greater than the first bid; while, if the first response is “no,” the second bid is some amount smaller. This “double-bounded” approach is shown to be asymptotically more efficient than the conventional, “singlebounded” approach. Using data from a survey of Californians regarding their willingness to pay for wetlands in the San Joaquin Valley, we show that, in a finite sample, the gain in efficiency can be very substantial.

Original language	English (US)
Pages (from-to)	1255-1263
Number of pages	9
Journal	American Journal of Agricultural Economics
Volume	73
Issue number	4
DOIs	https://doi.org/10.2307/1242453
State	Published - Nov 1991
Externally published	Yes

Keywords

Contingent valuation
Wetlands
Wildlife
Willingness to pay

ASJC Scopus subject areas

Agricultural and Biological Sciences (miscellaneous)
Economics and Econometrics

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10.2307/1242453

Cite this

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title = "Statistical efficiency of double-bounded dichotomous choice contingent valuation",

abstract = "The statistical efficiency of conventional dichotomous choice contingent valuation surveys can be improved by asking each respondent a second dichotomous choice question which depends on the response to the first question—if the first response is “yes,” the second bid is some amount greater than the first bid; while, if the first response is “no,” the second bid is some amount smaller. This “double-bounded” approach is shown to be asymptotically more efficient than the conventional, “singlebounded” approach. Using data from a survey of Californians regarding their willingness to pay for wetlands in the San Joaquin Valley, we show that, in a finite sample, the gain in efficiency can be very substantial.",

keywords = "Contingent valuation, Wetlands, Wildlife, Willingness to pay",

author = "Michael Hanemann and John Loomis and Barbara Kanninen",

note = "Funding Information: The authors received partial financial support from the NOAA National Sea Grant College Program under grant number NA89AA-D-SG138, Project No. R/MA-32, through the Califomia Sea Grant College, and in part by the Califomia Resources Agency, and from the University of Califomia Water Resources Center No. W-722. The U.S. Govemment is authorized to reproduce and distribute for govemment purposes.",

year = "1991",

month = nov,

doi = "10.2307/1242453",

language = "English (US)",

volume = "73",

pages = "1255--1263",

journal = "American Journal of Agricultural Economics",

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AU - Hanemann, Michael

AU - Loomis, John

AU - Kanninen, Barbara

N1 - Funding Information: The authors received partial financial support from the NOAA National Sea Grant College Program under grant number NA89AA-D-SG138, Project No. R/MA-32, through the Califomia Sea Grant College, and in part by the Califomia Resources Agency, and from the University of Califomia Water Resources Center No. W-722. The U.S. Govemment is authorized to reproduce and distribute for govemment purposes.

PY - 1991/11

Y1 - 1991/11

N2 - The statistical efficiency of conventional dichotomous choice contingent valuation surveys can be improved by asking each respondent a second dichotomous choice question which depends on the response to the first question—if the first response is “yes,” the second bid is some amount greater than the first bid; while, if the first response is “no,” the second bid is some amount smaller. This “double-bounded” approach is shown to be asymptotically more efficient than the conventional, “singlebounded” approach. Using data from a survey of Californians regarding their willingness to pay for wetlands in the San Joaquin Valley, we show that, in a finite sample, the gain in efficiency can be very substantial.

AB - The statistical efficiency of conventional dichotomous choice contingent valuation surveys can be improved by asking each respondent a second dichotomous choice question which depends on the response to the first question—if the first response is “yes,” the second bid is some amount greater than the first bid; while, if the first response is “no,” the second bid is some amount smaller. This “double-bounded” approach is shown to be asymptotically more efficient than the conventional, “singlebounded” approach. Using data from a survey of Californians regarding their willingness to pay for wetlands in the San Joaquin Valley, we show that, in a finite sample, the gain in efficiency can be very substantial.

KW - Contingent valuation

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KW - Wildlife

KW - Willingness to pay

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Statistical efficiency of double-bounded dichotomous choice contingent valuation

Abstract

Keywords

ASJC Scopus subject areas

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