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Public Choice

, Volume 172, Issue 1–2, pp 177–193 | Cite as

Quadratic voting as an input to cost-benefit analysis

Article
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Abstract

When agencies regulate, they must calculate the costs and benefits of their regulations. To do this, they must often price non-market goods—for instance, the value of protecting wildlife or the environment. Regulators have typically relied upon contingent valuation surveys to put prices on these types of goods. But contingent valuation surveys are fraught with error and often give rise to implausible valuations that cannot be trusted. Quadratic voting offers a better solution. Agencies should hold quadratic votes over nonmarket goods and use those votes to price the goods at issue.

Keywords

Cost-benefit analysis Non-market goods Contingent valuation Stated preference Quadratic voting Environmental benefits Regulation 

Notes

Acknowledgements

I thank Eric Posner and Glen Weyl for helpful conversations and suggestions, and Kathrine Gutierrez for excellent research assistance. This work was supported by the David and Celia Hilliard Fund.

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Copyright information

© Springer Science+Business Media New York 2017

Authors and Affiliations

  1. 1.ChicagoUSA

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