Willingness to Pay: A Comparison between Single and Double Bound Estimators
by Jubin Antony and Aruna Rao.
In contingent valuation studies, while dealing with the estimation of average willingness to pay (WTP) the commonly used approach is double bound referendum format. The response here is interval censored and generally logit or probit models are used to estimate the mean WTP. In this paper we compare the performance of model-based and design-based estimators of the mean, when the variable is continuous and interval censored. A second question that is addressed in this paper is the comparison of the bias and mean square error (MSE) of the maximum likelihood (ml) estimators in the single and double bound approaches. We have carried out simulations to compare the single and double bound approaches. The investigation indicates that the design-based estimators perform better in double bound case compared to single bound, while the performance of the model-based estimators in double bound case is dependent on the second bid values and the underlying estimation procedure.
Contingent valuation, willingness to pay, logit, probit, model-based estimators, design-based estimators, bias, mean square error
ubin Antony, email@example.com
Aruna Rao, firstname.lastname@example.org
Ahmed Youssef ,email@example.com
READING THE ARTICLE: You can read the article in
portable document (.pdf) format (374328 bytes.)
NOTE: The content of this article is the intellectual property of the authors, who retains all rights to future publication.
This page has been accessed 2002 times since AUGUST 22, 2009.
Return to the Home Page.