Scale sensitivity and question order in the contingent valuation method

Abstract

This study examines the effect on respondents' willingness to pay to reduce mortality risk by the order of the question in a stated preference study. Using answers from an experiment conducted on a Swedish sample where respondents' cognitive ability was measured and where they participate in a contingent valuation survey it is found that scale sensitivity is the strongest when respondents are asked about a smaller risk reduction first ("Bottom-up" approach). This contradicts some previous evidence in the literature. It is also found that the respondents' cognitive ability is correlated with their answers being line with theoretical predictions. The latter being important for the validity of the answers. Hence, the results of this paper suggest that scale sensitivity is related to the order of the questions and to respondents' cognitive ability.

Value of statistical life year in extreme poverty: a randomized experiment of measurement methods in rural Burkina Faso

“…We focused on range effects and WTP versus WTA. Andersson and Svensson point to additional features that may become important, notably the size of the assessed risk change [ 40 ]. If the risk change is not determined by substantial factors of the policy question at hand, it may be useful to also consider that dimension.…”

Testing the Transitivity of Reported Risk Perceptions: Evidence of Coherent Arbitrariness

“…Researchers have also found that individuals anchor reported probabilities based simply on the order in which questions appear, such that the characteristics of the initial question affect reported values on subsequent questions (Andersson and Svensson, ; O'Hagan et al., ; Wright and Anderson, ). Question order effects have been observed in a wide range of subjective valuation and expectation studies, including the willingness to pay for health‐care programs (Stewart et al., ) and perceived risk of developing cancer (Taylor et al., ).…”

Revisiting the Impact of Order Effects on Sensitivity to Scope: A Contingent Valuation of a Common‐Pool Resource

“…the public element of the common‐pool resource is dominated by the private element, where sensitivity to scope still applies in a significant degree due to the increased (private) benefit that the farmer obtains. This interpretation could also apply to Andersson and Svensson's () results, which also show order effects but still some differences in the degree of sensitivity to scope in the valuation of decreased mortality risk from bus accidents. They refer to it as a non‐pure private good in which values might contain an element of paternalistic altruism, but that is likely to be less strong than the private benefit of reducing one's own personal risk of dying in a bus accident.…”

“…Results from the Probit model (Table ) indicate that age, education level, tree density and farm income influence the likelihood of being sensitive to scope. Regarding age, Nielsen and Kjær () and Andersson and Svensson () also found that younger respondents are more likely to be sensitive to scope. The education level was also significant in Nielsen and Kjær (), but contrary to our results, they found that higher levels of education positively affect the likelihood of sensitivity to scope.…”

“…We have found that, while order effects were present, they did not affect the existence nor the degree of sensitivity to scope amongst our sample. This is comparable to other ‘puzzling’ results found in previous studies (notably by Clark and Friesen, ; Andersson and Svensson, ).…”