This paper considers the effects for offering a "would-notvote" option in contingent valuation (CV) questions framed using the referendum format. This approach arises from a suggestion made by the National Oceanic and Atmospheric Administration's (NOAA) panel on contingent valuation. The NOAA panel was asked to evaluate the use of this method for estimating the economic value of nonmarketed env...

Following Harrison and Kreps (1979) and Harrison and Pliska (1981), the valuation of contingent claims in continuous-time and discrete-time finite state space settings is generally based on the no-arbitrage principle, and the use of an equivalent martingale measure. In contrast, for some of the most popular discrete time processes used in finance, such as GARCH processes, the existing literatur...

This paper estimates the economic values of household preference for enhanced solid waste disposal services in Malaysia. The contingent valuation (CV) method estimates an average additional monthly willingness-to-pay (WTP) in solid waste management charges of €0.77 to 0.80 for improved waste disposal services quality. The finding of a slightly higher WTP from the generic CV question than that o...

Niagara Mohawk Power Corporation utilized a demand revealing public good mechanism to implement a green electricity program for provision of renewable energy and planting trees. This GreenChoiceTM program provided an opportunity to test the reliability of contingent valuation for predicting actual participation levels. In this study, participation levels predicted by hypothetical open-ended and...

Recently the number of contingent valuation studies conducted in developing countries has increased. Many have been done to value access to clean water, but there are still very few applications to tropical forest resources. In light of the fact that tropical forests cover a mere 7% of the earth’s land surface, yet provide estimates of up to half the world’s biota, there is a distinct need for ...

Sea-level rise, as a result of climate change, will likely inflict considerable economic consequences on coastal regions, particularly low-lying island states like Singapore. Although the literature has addressed the vulnerability of developed coastal lands, this is the first economic study to address nonmarket lands, such as beaches, marshes and mangrove estuaries. This travel cost and conting...

We conducted a field experiment comparing hypothetical and real purchase decisions for a pharmacist provided asthma management program among 172 subjects with asthma. Subjects received either a dichotomous choice contingent valuation question or were given the opportunity to actually enroll in the program. Three different prices were used: US$ 15, 40, and 80. In the hypothetical group, 38% of s...

Recent issues of this journal have presented an interesting debate regarding forest fires in Galicia, Spain. This article proposes a forest-energy programme that will contribute to reducing the risk of forest fires in this Atlantic Region of Southern Europe. We apply the contingent valuation method to assess a programme whereby 10% of the electricity produced from coal, fuel oil and gas would b...

We provide a comprehensive treatement of option pricing with particular emphasis on the valuation of American options on dividend-paying assets. We begin by reviewing valuation principles for European contingent claims in a financial market in which the underlying asset price follows an Itô process and the interest rate is stochastic. Then this analysis is extended to the valuation of American ...