How can we correct for contingent valuation bias? A case study of the Macau Orchestra

Abstract

The long‐standing contingent valuation method (CVM) is one of the most controversial techniques in economics. But it still remains the main means of assisting policymakers in understanding the preferences of ordinary citizens in valuing a range of non‐market goods believed to have positive external benefits. In the absence of viable alternatives, it is necessary that this method continues to be refined. This is especially important as CVM is increasingly being applied outside the area of environmental economics and outside the Western socio‐political context where theoretical advances have previously been made. This article examines three sources of bias in CVM in the context of valuing cultural goods: information, mixed good, and payment vehicle bias. A small case study of a publicly funded orchestra in an Asian city, the Macau Orchestra, is used to provide a preliminary exploration of the issues discussed.

Evaluating the Social Cost of Conflict between New Media and Society: The Case of Gaming Disorder in South Korea

“…After the verification and modification by NOAA, CVM has been established as a strong and valid economic evaluation methodology [48,49]. CVM has been primarily used in the environment area, but in recent years, it has been used in various fields such as energy [50][51][52], tourism ( [53][54][55], and cultural industries [56,57].…”