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A Consistent Method for Calibrating Contingent Value Survey Data
Author(s) -
Mansfield Carol
Publication year - 1998
Publication title -
southern economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.762
H-Index - 58
eISSN - 2325-8012
pISSN - 0038-4038
DOI - 10.1002/j.2325-8012.1998.tb00086.x
Subject(s) - respondent , preference , econometrics , value (mathematics) , willingness to pay , interpretation (philosophy) , contingent valuation , survey data collection , statistics , revealed preference , term (time) , computer science , mathematics , economics , microeconomics , programming language , political science , law , physics , quantum mechanics
This paper outlines a statistical method for calibrating contingent value survey data derived from the assumption that individuals make constrained utility maximizing decisions. The method proposed allows us to determine the influence of respondent characteristics on bias, as distinct from their influence on the preference parameters. A specific functional form for individual preferences was used to derive closed‐form analytical expressions for willingness‐to‐pay and willingness‐to‐accept that allow systematic deviations in individual responses to be explicitly modeled by providing a structural interpretation of the error term. Promising results are obtained for both open‐ended and dichotomous choice data using three CV data sets.