Exploring preference anomalies in double bounded contingent valuation

Research output: Contribution to journalArticle

31 Citations (Scopus)

Abstract

Double bounded dichotomous choice (DBDC) contingent valuation offers increased efficiency of willingness to pay (WTP) estimates compared with the single bounded format. However, evidence suggests DBDC generates anomalous respondent behaviour. This paper provides the first investigation and explanation of these anomalies in health. Results suggest the incentives for truthful preference revelation are altered in the presence of a follow up question. This result is found using both regression techniques and analysis of raw responses. Although findings suggest 'very certain' respondents exhibit less anomalous behaviour inconsistencies remain across bounds. The results of this Study question the use of iterative valuation formats. (C) 2006 Elsevier B.V. All rights reserved.

Original languageEnglish
Pages (from-to)463-482
Number of pages20
JournalJournal of Health Economics
Volume26
Issue number3
Early online date22 Nov 2006
DOIs
Publication statusPublished - 1 May 2007

Keywords

  • contingent valuation
  • anomalies
  • prospect theory
  • anchoring
  • calibration
  • willingness-to-pay
  • starting-point bias
  • dichotomous-choice
  • health-care
  • stated preference
  • payment card
  • questions
  • formats
  • elicitation
  • efficiency

Cite this

Exploring preference anomalies in double bounded contingent valuation. / Watson, Verity; Ryan, Mandy Elaine.

In: Journal of Health Economics, Vol. 26, No. 3, 01.05.2007, p. 463-482.

Research output: Contribution to journalArticle

@article{6beb6b3bae9b4807b92b0208adeee36e,
title = "Exploring preference anomalies in double bounded contingent valuation",
abstract = "Double bounded dichotomous choice (DBDC) contingent valuation offers increased efficiency of willingness to pay (WTP) estimates compared with the single bounded format. However, evidence suggests DBDC generates anomalous respondent behaviour. This paper provides the first investigation and explanation of these anomalies in health. Results suggest the incentives for truthful preference revelation are altered in the presence of a follow up question. This result is found using both regression techniques and analysis of raw responses. Although findings suggest 'very certain' respondents exhibit less anomalous behaviour inconsistencies remain across bounds. The results of this Study question the use of iterative valuation formats. (C) 2006 Elsevier B.V. All rights reserved.",
keywords = "contingent valuation, anomalies, prospect theory, anchoring, calibration, willingness-to-pay, starting-point bias, dichotomous-choice, health-care, stated preference, payment card, questions, formats, elicitation, efficiency",
author = "Verity Watson and Ryan, {Mandy Elaine}",
year = "2007",
month = "5",
day = "1",
doi = "10.1016/J.JHEALECO.2006.10.009",
language = "English",
volume = "26",
pages = "463--482",
journal = "Journal of Health Economics",
issn = "0167-6296",
publisher = "Elsevier",
number = "3",

}

TY - JOUR

T1 - Exploring preference anomalies in double bounded contingent valuation

AU - Watson, Verity

AU - Ryan, Mandy Elaine

PY - 2007/5/1

Y1 - 2007/5/1

N2 - Double bounded dichotomous choice (DBDC) contingent valuation offers increased efficiency of willingness to pay (WTP) estimates compared with the single bounded format. However, evidence suggests DBDC generates anomalous respondent behaviour. This paper provides the first investigation and explanation of these anomalies in health. Results suggest the incentives for truthful preference revelation are altered in the presence of a follow up question. This result is found using both regression techniques and analysis of raw responses. Although findings suggest 'very certain' respondents exhibit less anomalous behaviour inconsistencies remain across bounds. The results of this Study question the use of iterative valuation formats. (C) 2006 Elsevier B.V. All rights reserved.

AB - Double bounded dichotomous choice (DBDC) contingent valuation offers increased efficiency of willingness to pay (WTP) estimates compared with the single bounded format. However, evidence suggests DBDC generates anomalous respondent behaviour. This paper provides the first investigation and explanation of these anomalies in health. Results suggest the incentives for truthful preference revelation are altered in the presence of a follow up question. This result is found using both regression techniques and analysis of raw responses. Although findings suggest 'very certain' respondents exhibit less anomalous behaviour inconsistencies remain across bounds. The results of this Study question the use of iterative valuation formats. (C) 2006 Elsevier B.V. All rights reserved.

KW - contingent valuation

KW - anomalies

KW - prospect theory

KW - anchoring

KW - calibration

KW - willingness-to-pay

KW - starting-point bias

KW - dichotomous-choice

KW - health-care

KW - stated preference

KW - payment card

KW - questions

KW - formats

KW - elicitation

KW - efficiency

U2 - 10.1016/J.JHEALECO.2006.10.009

DO - 10.1016/J.JHEALECO.2006.10.009

M3 - Article

VL - 26

SP - 463

EP - 482

JO - Journal of Health Economics

JF - Journal of Health Economics

SN - 0167-6296

IS - 3

ER -