Comparing Three Approaches That Generate Bids for the Referendum Contingent Valuation Method

Elnagheeb, Abdelmoneim H.; Jordan, Jeffrey L.

doi:10.1006/jeem.1995.1033

Cited by 8 publications

(4 citation statements)

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“…Cooper (1994) has demonstrated how to use the Krinsky and Robb method and Efron's percentile method, to construct confidence intervals around the welfare measure (Cooper, 1994;Efron, 1987;Krinsky and Robb, 1986). An optimal survey design for the DC question was selected to minimize the mean square error of the welfare measure and estimated using the DWEABS routine provided by Cooper (1993a) (Cooper, 1993b;Elnagheeb and Jordan, 1995).…”

Section: The Modelmentioning

confidence: 99%

Consumers’ willingness to pay for origin labelled wine

Skuras

Vakrou

2002

British Food Journal

208

142

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Quality agricultural products are assuming an increasingly important role in European Union (EU) agricultural and food policies. The potential for differentiating quality products and services on a regional basis has been recognised and legislation has been introduced for protecting the geographical indications and designations of origin for agricultural products and quality foodstuffs. Today, marketing strategies for quality products attempt to explore these new opportunities, trying to build on the products' reputation and the image of their region of origin. This study employs a dichotomous choice model to identify the socio-economic characteristics that influence Greek consumers' willingness to pay for an origin labelled wine. The results indicate that wine consumers' willingness to pay varies only according to social and demographic characteristics. Furthermore, the mean willingness to pay was estimated using two alternative econometric specifications of the dichotomous choice model. We have found that non-quality wine consumers are willing to pay double the price of a bottle of normal table wine if the alternative provides for a guarantee of the place of origin of the wine. Their decision is found to be dependent only upon education and affiliation with the place of origin. The model specifications are compared and useful conclusions referring to price policy for origin labelled wines and their marketing are drawn.

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Section: The Modelmentioning

confidence: 99%

Consumers’ willingness to pay for origin labelled wine

Skuras

Vakrou

2002

British Food Journal

208

142

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“…Instead we end up with a wide range of monetary values, which need to be converted into a statistical probability distribution function before any analysis can be performed and monetary WTP values derived. It is this conversion of a continuous series of bid amounts into a limited set of discrete bid levels, which may give rise to discussion in view of the fact that we do not impose any distributional assumptions during the bid vector design procedure as per Cooper [1993] or Elnagheeb and Jordan [1995].…”

Section: Discussionmentioning

confidence: 99%

“…On the basis of the frequency distribution of this continuum of bid amounts and using an arbitrary acceptance rate of the highest bid as a truncation rule (e.g., 20%) in order to avoid possible fat tail problems [Kriesel and Randall, 1986], we design a posteriori instead of a priori, in what Elnagheeb and Jordan [1995] would refer to as an ad hoc approach, a number of alternative bid vectors (three alternative approaches exist in the literature for optimal DC bid selection based on open-ended WTP pretest results and distributional assumptions [see Elnagheeb and Jordan, 1995]). …”

Section: Bid Vector Designmentioning

confidence: 99%

Nonmarket valuation of water quality in a rural transition economy in Turkey applying an a posteriori bid design

Tümay

Brouwer

2007

Water Resources Research

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[1] In this paper, we investigate the economic benefits associated with public investments in wastewater treatment in one of the special protected areas along Turkey's touristic Mediterranean coast, the Köycegiz-Dalyan watershed. The benefits, measured in terms of boatable, fishable, swimmable and drinkable water quality, are estimated using a public survey format following the contingent valuation (CV) method. The study presented here is the first of its kind in Turkey. The study's main objective is to assess public perception, understanding, and valuation of improved wastewater treatment facilities in the two largest population centers in the watershed, facing the same water pollution problems as a result of lack of appropriate wastewater treatment. We test the validity and reliability of the application of the CV methodology to this specific environmental problem in a rural transition economy and evaluate the transferability of the results within the watershed. In order to facilitate willingness to pay (WTP) value elicitation we apply a novel dichotomous choice procedure where bid design takes place a posteriori instead of a priori. The statistical efficiency of different bid vectors is evaluated in terms of the estimated welfare measures' mean square errors using Monte Carlo simulation. The robustness of bid function specification is analyzed through average WTP and standard deviation estimated using parametric and nonparametric methods.

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“…A more recent proposal by Elnagheeb and Jordan (1995) is based on the Tchebysheff inequality principle and requires only the estimation of the maximum and minimum bids, b s and b 1 , respectively (WTP mean and standard deviation estimates obtained from a pre-test may be incorporated to define the bid vector). On the grounds of a comparison-by simulation-of this procedure to the Boyle et al approach (1988) and the DWEABS ('distribution with equal area bid selection') method proposed by Cooper (1993), described below, these authors recommend the use of either the Cooper et al (1993) or the Boyle et al (1988) procedures to determine the bid vector, although they express a preference for the latter, as it is more readily implemented.…”

Section: Empirical Designsmentioning

confidence: 99%