You are here: Home
/ Publication Information
Title: Paired comparison estimates of willingness to accept versus contingent valuation estimates of willingness to pay
Author: Loomis, John B.; Peterson, George; Champ, Patricia A.; Brown, Thomas C.; Lucero, Beatrice;
Source: Journal of economic behavior & organization. 35(4): 501-515
Publication Series: Miscellaneous Publication
Description: Estimating empirical measures of an individual's willingness to accept that are consistent with conventional economic theory, has proven difficult. The method of paired comparison offers a promising approach to estimate willingness to accept. This method involves having individuals make binary choices between receiving a particular good or a sum of money. Willingness to accept can be inferred from the ranking of dollar amounts and the good of interest. Using the paired comparison approach, mean (median) willingness to accept for a private good is estimated at $59($52). Contingent valuation estimate of willingness to pay for the same good yields a mean (median) of $28($28). While these estimates are statistically different, the ratio of willingness to accept to willingness to pay is less than in most previous studies and closer to ratios found in actual cash experiments.
Keywords: private goods, experiment, contingent valuation, willingness to pay, validity
- We recommend that you also print this page and attach it to the printout of the article, to retain the full citation information.
- This article was written and prepared by U.S. Government employees on official time, and is therefore in the public domain.
- You may send email to email@example.com to request a hard copy of this publication. (Please specify exactly which publication you are requesting and your mailing address.)
XML: View XML
Loomis, John B.; Peterson, George; Champ, Patricia A.; Brown, Thomas C.; Lucero, Beatrice 1998. Paired comparison estimates of willingness to accept versus contingent valuation estimates of willingness to pay. Journal of economic behavior & organization. 35(4): 501-515
Get the latest version of the Adobe Acrobat reader or Acrobat Reader for Windows with Search and Accessibility