2007
DOI: 10.1111/j.1467-8276.2006.01020.x
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Modeling Starting Point Bias as Unobserved Heterogeneity in Contingent Valuation Surveys: An Application to Air Pollution

Abstract: Up to now, the starting point bias has generally been considered to be a homogeneous phenomenon. In this article, we treat anchoring as an unobserved heterogeneous phenomenon. Our contribution is twofold. First, we show analytically and by way of simulations that assuming homogeneous anchoring can be hazardous and lead to misspecifications. Second, we propose an econometric model that starts with a dichotomous question and then uses an open-ended question. We finally apply our model to a contingent valuation s… Show more

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Cited by 34 publications
(21 citation statements)
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“…The second scenario, called Move scenario (Viscusi et al 1988;Aprahamian et al 2007), is a choice of moving with the subject's household to one of two cities which have exactly the same characteristics (city size, housing, weather, public services etc.) apart from the cost of living and the level of air pollution.…”
Section: Experimental Designmentioning
confidence: 99%
See 1 more Smart Citation
“…The second scenario, called Move scenario (Viscusi et al 1988;Aprahamian et al 2007), is a choice of moving with the subject's household to one of two cities which have exactly the same characteristics (city size, housing, weather, public services etc.) apart from the cost of living and the level of air pollution.…”
Section: Experimental Designmentioning
confidence: 99%
“…We investigate the articulation between political behaviour and stated willingness to pay by examining values under three typical scenarios of the CV literature on air pollution: a new drug that prevents adverse health eects of air pollution exposure for the respondent alone (Alberini et al 2004;Krupnick et al 2002), moving the whole household to an already less polluted city (Viscusi et al 1988;Aprahamian et al 2007) and new regulations on air pollution that will potentially increase market prices (Desaigues et al 2007). One feature of these scenarios is they dier in scope.…”
Section: Introductionmentioning
confidence: 99%
“…Herriges and Shogren (1996) find that starting point bias may occur in sequential preference elicitation processes, but also that this is not necessarily the case. Moreover, Aprahamian et al (2007) find that individuals are heterogenous. For some they find evidence of starting point bias, for others they fail to establish it.…”
Section: Resultsmentioning
confidence: 99%
“…Surge assim, uma possível influência do valor proposto na própria questão sobre a resposta do indivíduo à pergunta. Isto é, diferentes valores iniciais podem levar os inquiridos a apontar diferentes WTP ou WTA e, portanto, levar a estimativas diferentes e, consequentemente, a diferentes decisões públicas (Aprahamian, Chanel, & Luchini, 2007).…”
Section: Avaliação Contingente E a Ancoragemunclassified
“…Esta possível influência do efeito ancoragem num estudo de avaliação contingente, pode levar a resultados e conclusões enganosos, uma vez que os indivíduos reagem de forma diferente conforme os valores apontados nas questões (Aprahamian et al, 2007). Sendo a avaliação contingente muitas vezes utilizada como instrumento de apoio às políticas públicas, torna-se relevante avaliar o impacto deste efeito neste tipo de estudos, para que as informações dadas por este tipo de avaliação sejam fidedignas (Kato & Hidano, 2007).…”
Section: Avaliação Contingente E a Ancoragemunclassified