Issues in the Contingent Valuation of Environmental Goods: Methodologies for Data Collection and Analysis

Fat tails and truncated bids in contingent valuation: an application to an endangered shorebird species

“…McFadden and Leonard (1993) found the same. In a study valuing the preservation of wilderness areas, they drop respondents who received a bid of $2,000 (where the next highest is $200) and mean willingness to pay declined to 54% of its initial value.…”

Is WTP an attitudinal measure? Empirical analysis of the psychological explanation for contingent values

“…Kahneman and Ritov (1994), noting the findings by McFadden and Leonard (1992), point out that the propensity to make positive contributions and the size of these contributions may be essentially independent characteristics of respondents. Brown et al (1996) also note that most of the explanatory power of the independent variables in explaining open-ended WTP could be attributed solely to the binary distinction between a $0 payment and a positive payment.…”

A comparison of responses to single and repeated discrete choice questions

“…Recognising the large sample sizes required for statistically significant estimation when using the SB choice format, some CV surveys have incorporated a follow-up question in the elicitation format. Numerous studies have found differences in WTP implied by the first and second questions in this doublebounded CV format (Cameron and Quiggin, 1994;Hanemann et al, 1991;McFadden and Leonard, 1995). Several interpretations of the difference have been given.…”