Pierre-Alexandre Mahieu, Romain Crastes dit Sourd, Pascal Gastineau, Benoît Chèze, Andrea Taylor
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How Does the Cost Vector Affect Payment Consequentiality in a Binary Choice Contingent Valuation Survey?
Abstract
Payment consequentiality should improve the validity of welfare estimates in stated preference surveys according to a growing body of research. In this paper, we study whether the type of amounts (precision, parity) that composes the cost vector affects payment consequentiality. Our experiment consists in a binary choice survey on renewable energy where the cost amounts range between 0.5 and 25 euros. For small amounts, we find that precision increases payment consequentiality. For larger amounts, even numbers perform better than odd numbers. Our results suggest that the type of cost amount (e.g., even/odd, general/precise) should be carefully considered by the analyst.
期刊介绍:
Land Economics is dedicated to the study of land use, natural resources, public utilities, housing, and urban land issues. Established in 1925 by the renowned economist and founder of the American Economic Association, Richard T. Ely at the University of Wisconsin, Land Economics has consistently published innovative, conceptual, and empirical research of direct relevance to economists. Each issue brings the latest results in international applied research on such topics as transportation, energy, urban and rural land use, housing, environmental quality, public utilities, and natural resources.