Modeling Response Incentive Effects in Dichotomous Choice Contingent Valuation Data

This paper introduces model specifications that can be used to explain response incentive effects that might occur with discrete response contingent valuation data when follow-up responses are collected. The models allowfor possible random response shocks, structural ships in willingness to pay betweenpayment questionsand heteroskedasticity between and within responses. Three well-known contingent valuation survey datasets that include follow-up payment questions are used to empirically test the models. (JEL C33, C35)