Stachtiaris, Spiros and Drichoutis, Andreas and Klonaris, Stathis (2011): The “more is less” phenomenon in Contingent and Inferred valuation.
Download (397kB) | Preview
We examine inconsistencies in preference orderings of the “more is less” kind (Alevy et al. 2011) using the Contingent valuation (CV) and the Inferred valuation (IV) method (Lusk and Norwood 2009a, 2009b). We find that when moving in a familiar market for consumers (i.e., the food market) we only observe weak effects of inconsistencies. In addition, we find that the IV method is no better than the CV method in generating more consistent preference orderings. Surprisingly, we also find that the IV method generates higher valuations than CV, rendering one of its advantages of mitigating social desirability bias questionable.
|Item Type:||MPRA Paper|
|Original Title:||The “more is less” phenomenon in Contingent and Inferred valuation|
|Keywords:||willingness-to-pay (WTP), Contingent Valuation (CV), Inferred Valuation(IV), preference reversals|
|Subjects:||D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis
C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C90 - General
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q51 - Valuation of Environmental Effects
C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C93 - Field Experiments
|Depositing User:||Andreas Drichoutis|
|Date Deposited:||11. Mar 2011 00:18|
|Last Modified:||31. Dec 2015 02:08|
Alevy, J.E.; J. List and W. Adamowicz 2011. "How Can Behavioral Economics Inform Non-Market Valuation;an Example from the Preference Reversal Literature." Land Economics (forthcoming).
Bazerman, M.H.; G.F. Loewenstein and S.B. White. 1992. "Reversals of Preference in Allocation Decisions: Judging an Alternative Versus Choosing among Alternatives." Administrative Science Quarterly, 37 (220-240).
Boothe, J.; J.A. Schwartz and G.B. Chapman. 2007. "Preference Reversals Resulting from a Market Value Heuristic." Marketing Theory, 7(I), pp. 27-38.
Caswell, J.A. and E.M. Modjuzska. 1996. "Using Informational Labeling to Influence the Market for Quality in Food Products." American Journal of Agricultural Economics, 78 (1248-1253.).
Crowne, D.P. and D. Marlowe. 1960. "A New Scale of Social Desirability Independent of Psychopathalogy." Journal of Consulting Psychology, 24(4), pp. 349-50.
Cummings, R.G. and G.W. Harrison. 1992. "A New Approach to Eliciting Incentive Compatible Values for Public Goods: The Inference Game." Working paper, Department of Economics, University of South Carolina.
Darby, M. and E. Karni. 1973. "Free Competition and Optimal Amount of Fraud." Journal of Law and Economics, 16, pp. 67-88.
Drichoutis, A.C.; P. Lazaridis and R.M. Nayga, Jr. 2009. "On Consumers' Valuation of Nutrition Information." Bulletin of Economic Research, 61(3), pp. 223-47.
Fisher, R.J. . 1993. "Social Desirability Bias and the Validity of Indirect Questioning." Journal of Consumer Research, 20 (2), pp. 303-15.
Goldstein, W.M. and H.J. Einhorn. 1987. "Expression Theory and the Preference Reversal Phenomena. ." Psychological Review, 94(236-254).
Grether, D.M. and C.R. Plott. 1979. "Economic Theory of Choice and the Preference Reversal Phenomenon." American Economic Review, 69(4), pp. 623-38.
Hsee, C.K.; G.F. Loewenstein; Sally Blount and Max H. Bazerman. 1999. "Preference Reversals between Joint and Separate Evaluations of Options: A Review and Theoretical Analysis." Psychological Bulletin, 125 pp. 576--91.
Hsee, C.K. 1996. "The Evaluability Hypothesis: An Explanation for Preference Reversals between Joint and Separate Evaluations of Alternatives." Organizational Behavior and Human Decision Processes 46: 247-57., 46, pp. 247-57.
Irwin, J.R.; P.Slovic; S. Lichtenstein and G. McClelland. 1993. "Preference Reversals and the Measurement of Environmental Values." Journal of Risk and Uncertainty, 6, pp. 5-18.
Johnson, E.J.; M. Steffel and D.G. Goldstein. 2005. "Making Better Decisions: From Measuring to Constructing Preferences." Health Psychology, 24(4), pp. S17–S22.
Leggett, C.G.; N.S. Kleckner; K.J. Boyle; J.W. Duffield and R.C. Mitchell. 2003. "Social Desirability Bias in Contingent Valuation Surveys Administered through in-Person Interviews." Land Economics 79, 79(4), pp. 561-75.
Lichtenstein, S. and P. Slovic. 2006. The Construction of Preference. Cambridge, UK: Cambridge University Press.
List, J.; R. Berrens; A. Bohara and J. Kerkvliet. 2004. "Examining the Role of Social Isolation on Stated Preferences." American Economic Review of Agricultural Economics, 94(3), pp. 741-52.
List, J.A. 2002. "Preference Reversals of a Different Kind: The “More Is Less” Phenomenon." American Economic Review, 92(5), pp. 1636-43.
Lusk, J.L. and B.F. Norwood. 2009a. "Bridging the Gap between Laboratory Experiments and Naturally Occurring Markets:An Inferred Valuation Method." Journal of Environmental Economic and Management, 58, pp. 236-50.
Lusk, J. and B.F. Norwood. 2009b. "An Inferred Valuation Method." Land Economics, 85(3), pp. 500-14.
Payne, J.W.; J.R. Bettman and D.A. Schkade. 1999. "Measuring Constructed Preferences: Towards a Building Code." Journal of Risk and Uncertainty, 19(1), pp. 243-70.
Plant, E.A.; P.G. Devine and P.C. Brazy. 2003. "The Bogus Pipeline and Motivations to Respond without Prejudice: Revisiting the Fading and Faking of Racial Prejudice." Group Processes and Intergroup Relations, 6 (2), pp. 187-200.
Rowe, R.D.; W.D. Schulze and W.S. Breffle. 1996. "A Test for Payment Card Biases." Journal of Environmental Economics and Management, 31, pp. 178-85.
Seidl, C. 2002. "Preference Reversal." Journal of Economic Surveys, 16(5), pp. 621-55.
Slovic, P. 1995. "The Construction of Preference." American Psychologist, 50(5), pp. 364-71.
Slovic, P. and S. Lichtenstein. 1968. "Relative importance of probabilities and payoffs in risk taking." Journal of Experimental Psychology, 78/3, Part 2, pp. 1–18.
Slovic, P. and S. Lichtenstein. 1983. "Preference-Reversals: A Broader Perspective." American Economic Review, 73(4), pp. 596-605.
Available Versions of this Item
- The “more is less” phenomenon in Contingent and Inferred valuation. (deposited 11. Mar 2011 00:18) [Currently Displayed]