Economic Valuation of Hypothetical Paratransit Retrofitting

Economic Valuation of the Shadegan Wetland

The Shadegan Wetland is located in the southwest of Iran. It is one of the wetlands internationally registered in the Ramsar Convention. Thanks to its variety of functionalities this wetlands has provided the local people with lots of job opportunities. Nowadays, as a result of located in the oil fields, this wetland is threatened by many of the projects run in its vicinity, like oil exploratio...

Contingent Valuation, Hypothetical Bias and Experimental Economics

Although the contingent valuation method has been widely used to value a diverse array of nonmarket environmental and natural resource commodities, recent empirical evidence suggests that it may not accurately estimate real economic values. The hypothetical nature of environmental valuation surveys typically results in responses that are significantly greater than actual payments. Economists ha...

RESEARCHING PREFERENCES, VALUATION and HYPOTHETICAL BIAS*

A number of recent papers in environmental economics have focused on the process of researching preferences – agents are uncertain about preferences but with effort may narrow their uncertainty. This issue has arisen in formulating bids in contingent valuation as well as the debate over the divergence between WTP and WTA. In the context of contingent valuation, it has been suggested that the hy...

External Validity of Contingent Valuation: Comparing Hypothetical and Actual Payments.

Whilst contingent valuation is increasingly used in economics to value benefits, questions remain concerning its external validity that is do hypothetical responses match actual responses? We present results from the first within sample field test. Whilst Hypothetical No is always an Actual No, Hypothetical Yes exceed Actual Yes responses. A constant rate of response reversals across bids/price...

A Meta-analysis of Hypothetical Bias in Stated Preference Valuation