DEVELOPING A DEMAND REVEALING MARKET CRITERION FOR CONTINGENT VALUATION VALIDITY TESTS
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Author
Rondeau, Daniel
Poe, Gregory L.
Schulze, William D.
Abstract
Past research suggests that contingent valuation overstates demand for public goods. These estimates of hypothetical bias are probably invalid since they rely on voluntary contributions mechanisms which fail to reveal demand. An improved mechanism is shown to reveal aggregate demand in controlled experiments. However, individual contributions deviate from induced value. Key Words: contingent valuation, voluntary contributions, provision point, experiments JEL Codes: H41, C92, Q20
Description
WP 1996-16 November 1996
Date Issued
1996-11-01
Publisher
Charles H. Dyson School of Applied Economics and Management, Cornell University
Type
article