Estimation of Average Willingness to Pay from Double Bounded Dichotomous Choice Data: Does the “Follow Up” matter?†
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چکیده
In Double Bounded Dichotomous Choice (DBDC) Contingent Valuation (CV) studies estimated parameters of the first response equations are used to obtain Mean WTP because of the anchoring bias inherent in follow up responses. In this paper we show that through an efficient scheme of bid design and using a recursive probit model one can arrive at estimates of mean WTP using the follow up responses that are both efficient and robust compared to the standard Interval Data Model and Bivariate Probit Model. JEL Classifications: C 35, Q 51, Q 53.
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