On assuaging positive bias in environmental value elicitation

Published on Jun 1, 2009in Journal of Economic Psychology
· DOI :10.1016/J.JOEP.2008.07.007
Steven S. Posavac27
Estimated H-index: 27
(Vandy: Vanderbilt University),
J. Joško Brakus12
Estimated H-index: 12
(UR: University of Rochester)
+ 1 AuthorsShailendra Pratap Jain14
Estimated H-index: 14
(UW: University of Washington)
Research has consistently shown that the process of eliciting environmental values is fraught with potential pitfalls that can produce biased estimates. The present research focused on how to preclude one such pitfall, overvaluation of a focal environmental entity, in light of the psychological processes that have been recently shown to underlie this bias. Analysis of a survey of respondents' valuations of environmental entities demonstrated focal entity overvaluation, and that specifying alternatives to a focal entity was not sufficient to preclude positive bias. Only when respondents were required to provide valuations of multiple entities were much more moderate, less biased, valuations obtained. The implication of this research is that when the value of an environmental entity is assessed, respondents should be asked to provide valuations of the target entity as well as other intra-category alternatives so that positive bias is ameliorated.
📖 Papers frequently viewed together
15 Citations
132 Citations
24 Citations
#1David K. Whynes (University of Nottingham)H-Index: 39
#2Emma Frew (University of Birmingham)H-Index: 28
Last. Richard Smith (UEA: University of East Anglia)H-Index: 69
view all 5 authors...
Abstract Responses elicited by means of contingent valuation are often expressed in numerical forms termed “prominent numbers”, characterised by inexactness. This might arise because subjects find exactness in response unnecessary or valuation tasks intrinsically difficult. It has been suggested that the provision of numerical cues could influence the ease of completion of the valuation task, and thus its outcome. We describe an experiment undertaken to test three hypotheses. These are, first, t...
15 CitationsSource
#1Richard T. Carson (UC: University of California)H-Index: 64
#2Theodore Groves (UC: University of California)H-Index: 4
Last. Theodore Groves (UC: University of California)H-Index: 11
view all 2 authors...
Surveys are frequently used by businesses and governments to elicit information about the public’s preferences. They have become the most common way to gather preference information regarding goods, that are not (or are not yet) bought or sold in markets. In this paper we apply the standard neoclassical economic framework to generate predictions about how rational agents would answer such survey questions, which in turn implies how such survey data should be interpreted. In some situations, the ...
886 CitationsSource
#1Ryan Wiser (LBNL: Lawrence Berkeley National Laboratory)H-Index: 62
Some of the most basic questions about the organization and functioning of society involve issues raised by the existence of public goods. With respect to environmental public goods, how should funds used to support environmental improvement be collected and used? In particular, are collective, mandatory payments superior to voluntary, charitable payments due to the possibility of free riding? And to what degree should the government be involved in spending these funds: should the government dir...
300 CitationsSource
#1Tuo Wang (College of Business Administration)H-Index: 5
#2R. VenkateshH-Index: 17
Last. Rabikar ChatterjeeH-Index: 15
view all 3 authors...
Abstract Drawing from the literature on buyers' uncertainty in preference and product knowledge, the authors suggest and empirically test the proposition that a consumer's reservation price for a product is more meaningfully and accurately represented as a range than as a single point. Given this conceptualization, they propose an approach for incentive-compatible elicitation of a consumer's reservation price range (ICERANGE) that builds on Becker, DeGroot, and Marschak's (1964) point-of-purchas...
112 CitationsSource
#1Clement A. Tisdell (UQ: University of Queensland)H-Index: 31
#2Hemanath Swarna Nantha (UQ: University of Queensland)H-Index: 7
This study contrasts the actual conservation spending and the Australian public’s demand for conservation funding for two Australian mammal species, the koala and the northern hairy-nosed wombat. It involves a survey of 204 members of the Australian public. Willingness to fund conservation action to protect the northern hairy-nosed wombat was found to be higher than that for the koala despite the koala’s immense popularity. The critically endangered status of the northern-hairy nosed wombat and ...
38 CitationsSource
#1Seung Jun Kwak (KU: Korea University)H-Index: 23
#2Seung Hoon Yoo (Hoseo University)H-Index: 17
Last. Chung Ki Lee (KU: Korea University)H-Index: 3
view all 3 authors...
A contingent valuation (CV) method was performed to estimate the conservation value of the Woopo Wetland, Ramsar site, in Korea. The CV survey was rigorously designed to comply with the guidelines for best-practiced CV studies. Respondents overall accepted the hypothetical market and were willing to pay a significant amount (2,731 to 3,960 Korean won = USD 2.10 to 3.05), on average, per household annually to conserve the wetland. These findings have important implications for efforts to consider...
15 CitationsSource
#1Steven S. Posavac (UR: University of Rochester)H-Index: 27
#2J. Joško Brakus (UR: University of Rochester)H-Index: 12
Last. Maria L. Cronley (Miami University)H-Index: 14
view all 4 authors...
The need to determine the value of environmental entities has generated substantial research regarding optimal methods for obtaining valuations from survey respondents. The literature suggests the importance of providing clear, complete descriptions of the entity being valued prior to respondents indicating their valuations. The target entity’s attributes are often presented in isolation or in greater detail compared with other entities. Two experiments were conducted to explore whether selectiv...
15 CitationsSource
#1Kurt A. Carlson (Duke University)H-Index: 16
#2Margaret G. Meloy (PSU: Pennsylvania State University)H-Index: 16
Last. J. Edward Russo (SPbU: Saint Petersburg State University)H-Index: 37
view all 3 authors...
Leader-driven primacy uses initial product information to install a targeted brand as the early leader in a choice between two brands. Biased evaluation of subsequent attributes builds support for the targeted brand, causing the choice itself to be biased. Study 1 finds evidence of this effect in choices between two equally attractive brands. Study 2 extends the finding to a situation where one brand is inferior and to conditions where participants do not explicitly identify their leader. Study ...
96 CitationsSource
#1Icek Ajzen (UMass: University of Massachusetts Amherst)H-Index: 86
#2Thomas C. Brown (USFS: United States Forest Service)H-Index: 48
Last. Franklin Carvajal (UMass: University of Massachusetts Amherst)H-Index: 2
view all 3 authors...
An experiment was designed to account for intention-behavior discrepancies by applying the theory of planned behavior to contingent valuation. College students (N = 160) voted in hypothetical and real payment referenda to contribute $8 to a scholarship fund. Overestimates of willingness to pay in the hypothetical referendum could not be attributed to moderately favorable latent dispositions. Instead, this hypothetical bias was explained by activation of more favorable beliefs and attitudes in th...
409 CitationsSource
#1Susan Chilton (Newcastle University)H-Index: 21
#2W. G. Hutchinson ('QUB': Queen's University Belfast)H-Index: 6
The issue of how bidders respond to an increase in the quantity or quality of an environmental good is of central importance to the economic validity of the contingent valuation method (CVM). This paper undertakes both a quantitative and qualitative examination of individual bidder response in respect of a particular case study. Using an open ended multiple bid design with follow up verbal reports, we explore respondent motivations behind scope-sensitive and non-scope sensitive responses. An exa...
35 CitationsSource
Cited By9
#1Andrew R. Smith (ASU: Appalachian State University)H-Index: 10
#2Paul D. Windschitl (UI: University of Iowa)H-Index: 23
Last. Jason P. Rose (UT: University of Toledo)H-Index: 17
view all 3 authors...
AbstractJudgments of direct comparisons, probabilities, proportions, and ranks can all be considered referent-specific judgments, for which a good estimate requires a target to be compared against ...
#1Steven S. Posavac (Vandy: Vanderbilt University)H-Index: 27
#2Mark Ratchford (Tulane University)H-Index: 3
Last. David M. Sanbonmatsu (UofU: University of Utah)H-Index: 26
view all 4 authors...
Abstract This research documents a premature infatuation effect in financial judgment and choice, and seeks to understand why it occurs. In many financial decisions, one potential investment choice becomes focal. The premature infatuation effect occurs when a focal investment possibility comes to be overvalued simply because it has come to the fore. Three experiments demonstrate that the premature infatuation effect influences financial judgments, choice intentions, and non-hypothetical decision...
When ecosystem services value estimates are applied in the economic assessment of environmental policies, high accuracy of these estimates is required. One of the directions in the scientific discussion on biases in stated preference (SP) valuation surveys builds on dual-process theories of judgment. The paper contributes to this literature by presenting an experiment where two types of judgment were induced via separate versus joint valuation of environmental goods. The results demonstrated tha...
#1Eline JongmansH-Index: 4
#2Alain Jolibert (Inseec Business School)H-Index: 8
Many elicitation modes for collecting preference judgments are available in marketing to estimate the weight of a product attribute in the formation of preferences for a product. The use of different elicitation modes may lead to preference reversals and systematic differences in attribute weights. The three objectives of this article are (1) to clarify the elicitation mode classification using four criteria – incentive versus stated modes, direct versus indirect, monetary versus non-monetary, a...
#1Eline JongmansH-Index: 4
#2Alain Jolibert (Inseec Business School)H-Index: 8
EnglishMany elicitation modes for collecting preference judgments are available in marketing to estimate the weight of a product attribute in the formation of preferences for a product. The use of different elicitation modes may lead to preference reversals and systematic differences in attribute weights. The three objectives of this article are (1) to clarify the elicitation mode classification using four criteria – incentive versus stated modes, direct versus indirect, monetary versus non-mone...
#1Anine Cecilie Riege (University of Oslo)H-Index: 1
#2Karl Halvor Teigen (University of Oslo)H-Index: 28
Two streams of research looking at referent-dependent judgments from slightly different angles are subadditivity research and research on the nonselective superiority bias. Both biases violate basic formal constraints: the probabilities of a set of exclusive events cannot add up to more than 100%, and a set of attractive candidates cannot all be rated as superior to the group mean. We examine in three experiments how these two biases are related, by asking the same participants to perform both k...
2 CitationsSource
#1Frank R. Kardes (UC: University of Cincinnati)H-Index: 50
Abstract Simonson et al. (forthcoming) propose a new theory of comparison selection that explains which particular alternatives will be considered in a wide variety of judgment and choice tasks. Comparison selection depends on the latitude of acceptance, comparison fluency, and the interaction between these factors. Importantly, these factors integrate a wide variety of seemingly unrelated variables, and the theory is useful for generating novel hypotheses. However, because comparative processin...
15 CitationsSource
#1David M. Sanbonmatsu (UofU: University of Utah)H-Index: 26
#2Sam Vanous (UofU: University of Utah)H-Index: 3
Last. Frank R. Kardes (UC: University of Cincinnati)H-Index: 50
view all 5 authors...
Judgements of the value or likelihood of a focal object or outcome have been shown to vary dramatically as a function of whether judgement is based on selective or comparative processing. This article explores the question of when selective versus comparative processing is likely, and demonstrates that as motivation and opportunity to process information carefully (operationalised as accountability and time pressure, respectively) decrease, the likelihood of selective processing increases. Moreo...
10 CitationsSource
#2Paul MartinH-Index: 10
Research undertaken to advance sustainable land-use in peri-urban Australia has identified the need for greater innovation in natural resource management (NRM). This requires moving from an overly regulation-dependent resource management system to an environmental market system. Under current arrangements, continued resource depletion and degradation; institutional barriers to innovative solutions, and high transaction costs in affecting change are all evident. An environmental markets policy ap...
1 CitationsSource