Journal of Risk and Uncertainty

, Volume 18, Issue 1, pp 21–32 | Cite as

Calibrating Hypothetical Willingness to Pay Responses

  • Magnus Johannesson
  • Glenn C. Blomquist
  • Karen Blumenschein
  • Per-olov Johansson
  • Bengt Liljas
  • Richard M. O'Conor
Article

Abstract

Experimental data comparing hypothetical and real dichotomous choice responses for two different goods were used to estimate a statistical bias function to calibrate the hypothetical yes responses. The probability that a hypothetical yes response would be a real yes response was estimated as a function of the individual's self-assessed certainty of the hypothetical yes response (assessed on a 0–10 scale) and a variable representing the price level. Without calibration the hypothetical yes responses significantly exceeded the proportion of real yes responses, but after calibration the null hypothesis of no difference between hypothetical and real responses could not be rejected in any of the experiments.

contingent valuation hypothetical bias willingness to pay experiments calibration 

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Copyright information

© Kluwer Academic Publishers 1999

Authors and Affiliations

  • Magnus Johannesson
    • 1
  • Glenn C. Blomquist
    • 2
  • Karen Blumenschein
    • 3
  • Per-olov Johansson
    • 4
  • Bengt Liljas
    • 5
  • Richard M. O'Conor
    • 6
  1. 1.Department of EconomicsStockholm School of EconomicsStockholmSweden
  2. 2.Department of Economics and Martin School of Public Policy and AdministrationUniversity of KentuckyLexingtonUSA
  3. 3.College of Pharmacy, University of KentuckyLexingtonUSA
  4. 4.Department of EconomicsStockholm School of EconomicsStockholmSweden
  5. 5.Department of EconomicsLund UniversityLundSweden
  6. 6.ConsultantPark CityUSA

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