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HYPOTHETICAL BIAS: THE MITIGATING EFFECTS OF CERTAINTY QUESTIONS AND CHEAP TALK AgEcon
Champ, Patricia A.; Moore, Rebecca; Bishop, Richard C..
This paper reports on an investigation of hypothetical bias and approaches to identifying and mitigating the bias. The split sample design includes an actual donation treatment, a contingent donation treatment with a follow-up certainty question and a contingent donation treatment with cheap talk. Studies comparing contingent values to actual payments consistently find that respondents report higher willingness to pay in a hypothetical payment situation relative to an actual payment situation. While the existence of hypothetical bias has been confirmed in such studies, less attention has been focused on the nature and causes of hypothetical bias. Previous research (Champ et al. 1997, Champ and Bishop 2001) suggests that a small and potentially...
Tipo: Conference Paper or Presentation Palavras-chave: Research Methods/ Statistical Methods; Resource /Energy Economics and Policy.
Ano: 2004 URL: http://purl.umn.edu/19951
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A Dynamic Principal-Agent Model of Human-Mediated Aquatic Species Invasions AgEcon
Moore, Rebecca; MacPherson, Alexander J.; Provencher, Bill.
This paper presents an integrated ecological and economic model of aquatic plant species invasions in which resource users are the primary vector of species colonization. A random utility model of boater behavior is combined with ecological information about the invader and the landscape to form a dynamic principal-agent model in which the principal is a manager concerned with the interseasonal spread of invasive species across lakes, and agents are recreational boaters making a series of intraseasonal trip decisions to maximize random utility during the course of the season. Agent behavior is sensitive to both the degradation of environmental quality on colonized lakes and the actions taken by resource managers to control the spread of the invasive...
Tipo: Working or Discussion Paper Palavras-chave: Environmental Economics and Policy.
Ano: 2005 URL: http://purl.umn.edu/12684
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A Dynamic Principal-Agent Model of Human-Mediated Aquatic Species Invasions AgEcon
MacPherson, Alexander J.; Moore, Rebecca; Provencher, Bill.
This paper presents a dynamic principal-agent model of aquatic species invasions in which a manager, concerned about the spread of invasive species across lakes by boaters, sets interseasonal management controls on a lake-by-lake basis, and boaters make a series of intraseasonal trip decisions to maximize random utility during the course of the season, conditional on the controls imposed by the manager. The results of a simulated invasion of Eurasian watermilfoil (Myriophyllum spicatum) highlight interesting aspects of the optimal management policies under two different management objectives: maximizing boater welfare and minimizing milfoil spread.
Tipo: Journal Article Palavras-chave: Invasive species; Random utility model; Eurasion watermilfoil; Dynamic optimiza-tion; Principal-agent; Resource /Energy Economics and Policy.
Ano: 2006 URL: http://purl.umn.edu/10189
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Valuing a Spatially Diverse Non-Market Good: The Benefits of Reduced Non-Point Source Pollution in Green Bay, WI AgEcon
Moore, Rebecca; Bishop, Richard C.; Provencher, Bill.
This article presents an empirical approach to correcting for spatial interactions in stated preference data when valuing large-scale, spatially variable environmental improvements. This approach is presented in the context of a contingent valuation study estimating the benefits of reduced non-point source pollution in Green Bay, Wisconsin. The significant spatial variation of water clarity conditions in this large water body was captured using satellite-derived GIS data. This article focuses on two significant challenges: first, ensuring respondents are adequately informed of how the proposed change will impact their individual utility stream; second, dealing with the spatial effects within the estimation model. The GIS water clarity data were used to...
Tipo: Conference Paper or Presentation Palavras-chave: Water quality; Non-point source pollution; Contingent valuation; Spatial correlation; Environmental Economics and Policy; Resource /Energy Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/9809
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Using Attitudes to Characterize Heterogeneous Preferences AgEcon
Moore, Rebecca.
This paper compares three approaches to using attitudinal data to describe heterogeneous preferences for non-market goods. Two latent class models and one random parameter logit model are included. Each model makes different assumptions about the role of attitudes in the decision process. Specifically, each model assumes a different relationship between attitudes and preferences and these differences are discussed in terms of economic and social psychology theory. The three models are then used to examine individual preferences for water clarity improvements in Green Bay, Wisconsin. The results suggest that the choice of models has important implications on the quantitative results and on the nature of the preference heterogeneity, but does not affect the...
Tipo: Conference Paper or Presentation Palavras-chave: Institutional and Behavioral Economics; Public Economics; Resource /Energy Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/6488
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A Comparison of Approaches to Mitigate Hypothetical Bias AgEcon
Champ, Patricia A.; Moore, Rebecca; Bishop, Richard C..
We compare two approaches to mitigating hypothetical bias. The study design includes three treatments: an actual payment treatment, a contingent valuation (CV) treatment with a follow-up certainty question, and a CV treatment with a cheap talk script. Our results suggest that both the follow-up certainty treatment and the cheap talk treatment produce willingness-to-pay (WTP) estimates consistent with the actual payment treatment. However, the follow-up certainty treatment provides response distributions at all offer amounts that are statistically similar to the actual payment treatment, while the cheap talk treatment provides similar responses only at some offer amounts. Furthermore, the cheap talk treatment is effective only for inexperienced individuals....
Tipo: Journal Article Palavras-chave: Contingent valuation; Hypothetical bias; Follow-up certainty; Cheap talk; Nonmarket valuation; Environmental Economics and Policy; Public Economics; Research Methods/ Statistical Methods.
Ano: 2009 URL: http://purl.umn.edu/55867
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Valuing a Spatially Variable Environmental Resource: Reducing Non-Point Source Pollution in Green Bay, WI AgEcon
Moore, Rebecca; Provencher, Bill; Bishop, Richard C..
This article investigates the value of reducing non-point source pollution in Green Bay, WI. Using stated preference methods, we find the lower bound on the benefits of reducing runoff enough to universally increase water clarity by four feet is greater than $9 million annually. Using a unique survey design, we show that because current water clarity in Green Bay is spatially variable, the value that a household places on this universal improvement depends on the distance of the household’s residence from the Bay and on the particular geospatial location of the residence. This has important implications for estimating aggregate benefits.
Tipo: Working or Discussion Paper Palavras-chave: Environmental Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/92235
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Accounting for Respondent Uncertainty to Improve Willingness-to-Pay Estimates AgEcon
Moore, Rebecca; Bishop, Richard C.; Provencher, Bill; Champ, Patricia A..
In this paper we develop an econometric model of willingness to pay that integrates data on respondent uncertainty regarding their own willingness to pay. The integration is utility consistent and does not involve calibrating the contingent responses to actual payment data, and so the approach can “stand alone”. In an application to a valuation study related to whooping crane restoration, we find that this model generates a statistically lower expected WTP than the standard CV model. Moreover, the WTP function estimated with this model is not statistically different from that estimated using actual payment data, suggesting that when properly analyzed using data on respondent uncertainty, contingent valuation decisions can simulate actual payment decisions....
Tipo: Working or Discussion Paper Palavras-chave: Research Methods/ Statistical Methods; Risk and Uncertainty.
Ano: 2009 URL: http://purl.umn.edu/92233
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Productive Efficiency in Water Usage: An Analysis of Differences among Farm Types and Sizes in Georgia AgEcon
Moore, Rebecca; Price, Joseph.
In Georgia, the price of irrigation water is equal to the cost of extraction, including pumping and diversion, storage, treatment, and delivery costs. These water-pricing conditions are repeated in locales around the world. In lieu of established water markets, water use and its efficient use are driven more by farm-level characteristics and management strategies than by the resource price. The purpose of the research presented herein is to examine what factors guide Georgia farmers’ water use decisions. Using data envelopment analysis (DEA) to calculate technical water use efficiency scores, a second step Tobit model is estimated to determine the effect of farm type and farm size. A farms’ use of conservation tillage or organic farming positively...
Tipo: Conference Paper or Presentation Palavras-chave: Technical/productive water use efficiency; Organic agriculture; DEA; Production Economics; Productivity Analysis; Resource /Energy Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/49482
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Valuing Ecosystem Services from Private Forests AgEcon
Moore, Rebecca; Williams, Tiffany; Rodriguez, Eduardo.
Tipo: Conference Paper or Presentation Palavras-chave: Non-market valuation; Ecosystem services; Environmental Economics and Policy.
Ano: 2011 URL: http://purl.umn.edu/103717
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