Abstract
This comment takes up the discussion about the incentive compatibility of contingent valuation surveys revived by a recent paper of Carson, Groves and List (2014) in this journal. We feel that the conclusions the authors draw from their theoretical and experimental work cannot be generalized to contingent valuation (CV) surveys. We single out the lack of cost credibility as the principal obstacle to incentive compatibility and propose some amendments to the survey protocol that foster the cost credibility of random-bid CV studies.
Keywords
Contingent valuation; cost credibility; incentive compatibility;
JEL codes
- D81: Criteria for Decision-Making under Risk and Uncertainty
- D82: Asymmetric and Private Information • Mechanism Design
- Q51: Valuation of Environmental Effects
Reference
Christoph Rheinberger, and Felix Schläpfer, “It’s the Cost Credibility, Stupid! A Comment on “Consequentiality: A Theoretical and Experimental Exploration of a Single Binary Choice””, TSE Working Paper, n. 15-573, May 2015.
See also
Published in
TSE Working Paper, n. 15-573, May 2015