Abstract
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 valuationRespondentBounded functionEconomicsEconometricsMathematicsValuation (finance)San JoaquinWillingness to payStatisticsMicroeconomicsEnvironmental science
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Publication Info
- Year
- 1991
- Type
- article
- Volume
- 73
- Issue
- 4
- Pages
- 1255-1263
- Citations
- 1760
- Access
- Closed
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Cite This
W. Michael Hanemann,
John B. Loomis,
Barbara Kanninen
(1991).
Statistical Efficiency of Double‐Bounded Dichotomous Choice Contingent Valuation.
American Journal of Agricultural Economics
, 73
(4)
, 1255-1263.
https://doi.org/10.2307/1242453
Identifiers
- DOI
- 10.2307/1242453