Selected Publications

One-and-One Half Bound Dichotomous Choice Contingent Valuation

Cooper, J.,  W.M. Hanemann and G. Signorello. "One-and-One Half Bound Dichotomous Choice Contingent Valuation," Review of Economics and Statistics 84(4): 742-750, 2002.

Abstract

Although the double-bound (DB) fonnat for the discrete choice
contingent valuation method (CVM) has the benefit of higher efficiency in
welfare benefit estimates than the single-bound (SB) discrete choice
CVM, it has been subject to criticism due to evidence that some of the
responses to the second bid may be inconsistent with the responses to the
first bid. As a means to reduce the potential for response bias on the
follow-up bid in multiple-bound discrete choice formats such as the DB
model while maintaining much of the efficiency gains of the multiplebound approach, we introduce the one-and-one-half-bound (OOHB) approach and present a real-world application. In a laboratory setting,
despite the fact that the OOHB model uses less information than the DB
approach, the efficiency gains in moving from SB to OOHB capture a
large portion of the gain associated with moving from SB to DB. Utilizing
distribution-free seminonparametric estimation techniques on a splitsurvey data set, our OOHB estimates demonstrated higher consistency
with respect to the follow-up data than the DB estimates and were more
efficient as well. Hence, OOHB may serve as a viable alternative to the
DB fonnat in situations where follow-up response bias may be a concern.

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