Criterion and predictive validity of revealed and stated preference data: the case of “Mountain Home Music” concert demand | Zendy

John C. Whitehead | Zendy; Douglas S. Noonan | Zendy; Elizabeth Marquardt | Zendy

Open Access

Criterion and predictive validity of revealed and stated preference data: the case of “Mountain Home Music” concert demand

Author(s) -

John C. Whitehead,

Douglas S. Noonan,

Elizabeth Marquardt

Publication year - 2014

Publication title -

economics and business letters

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.197

H-Index - 4

ISSN - 2254-4380

DOI - 10.17811/ebl.3.2.2014.87-95

Subject(s) - ex ante , preference , revealed preference , economics , valuation (finance) , contingent valuation , econometrics , survey data collection , nonmarket forces , time preference , willingness to pay , microeconomics , statistics , mathematics , macroeconomics , finance , factor market

Despite a robust literature on nonmarket valuation of cultural assets, serious validity concerns remain. We address this by estimating a demand model for a regional concert series. We survey concertgoers during and then again after the concert season to gather ex ante and ex post stated and revealed preference data. Comparing ex ante stated preference data to ex post revealed preference data we find respondents overstate their concert attendance behavior. An ex ante revealed-stated preference demand model with a stated preference adjustment helps calibrate the results and avoid bias from using solely hypothetical, stated preference data. The results demonstrate how to improve predictive accuracy in contingent behavior models and improve our understanding of demand for live music performances.

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