Statistical efficiency of double-bounded dichotomous choice contingent valuation

William Hanemann, John Loomis, Barbara Kanninen

Research output: Contribution to journalArticle

868 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 languageEnglish (US)
Pages (from-to)1255-1263
Number of pages9
JournalAmerican Journal of Agricultural Economics
Volume73
Issue number4
DOIs
StatePublished - 1991
Externally publishedYes

Keywords

  • Contingent valuation
  • Wetlands
  • Wildlife
  • Willingness to pay

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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