Preference Uncertainty in Non‐Market Valuation: A Fuzzy Approach | Zendy

Kooten G. Cornelis | Zendy; Krcmar Emina | Zendy; Bulte Erwin H. | Zendy

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Preference Uncertainty in Non‐Market Valuation: A Fuzzy Approach

Author(s) -

Kooten G. Cornelis,

Krcmar Emina,

Bulte Erwin H.

Publication year - 2001

Publication title -

american journal of agricultural economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 1.949

H-Index - 111

eISSN - 1467-8276

pISSN - 0002-9092

DOI - 10.1111/0002-9092.00172

Subject(s) - valuation (finance) , probabilistic logic , fuzzy logic , contingent valuation , economics , decision maker , econometrics , fuzzy number , mathematical economics , computer science , fuzzy set , microeconomics , mathematics , willingness to pay , operations research , artificial intelligence , finance

In this article, we consider uncertain preferences for non‐market goods, but we move away from a probabilistic representation of uncertainty and propose the use of fuzzy contingent valuation. We assume that a decision maker never fully knows her own utility function and we treat utility as a fuzzy number. The methodology is illustrated using data on forest valuation in Sweden. Fuzzy contingent valuation provides estimates of resource value in the form of a fuzzy number and includes estimates obtained using a standard probabilistic approach.

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