The discovered preference hypothesis - an empirical test

Publikation: KonferencebidragPaperForskning

Using stated preference methods for valuation of non-market goods is known to be

vulnerable to a range of biases. Some authors claim that these so-called anomalies in effect render the methods useless for the purpose. However, the Discovered Preference Hypothesis, as put forth by Plott [31], offers an nterpretation and explanation of biases which entails that the stated preference methods need not to be completely written off. In this paper we conduct a test for the validity and relevance of the DPH interpretation of biases. In a choice experiment concerning preferences for protection of Danish nature areas from new motorway development, we find that respondent preferences are susceptible to starting point bias. In particular, our results show that the bias is gender-specific as only female respondents are significantly biased. Importantly, we find that the impact of the starting point bias decays as respondents evaluate more and more choice sets. This finding supports the Discovered Preference Hypothesis interpretation and explanation of starting point bias.

OriginalsprogEngelsk
Publikationsdato2008
Antal sider12
StatusUdgivet - 2008
BegivenhedThe annual conference of European Association of Environmental and Resource Economists (EAERE) - Gothenburg, Sverige
Varighed: 25 jun. 200828 jun. 2008
Konferencens nummer: 16

Konference

KonferenceThe annual conference of European Association of Environmental and Resource Economists (EAERE)
Nummer16
LandSverige
ByGothenburg
Periode25/06/200828/06/2008

ID: 8109645