Fat tails and truncated bids in contingent valuation: An application to an endangered shorebird species

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• 作者：George R. Parsons^a ; ; Kelley Myers^b
• 关键词：Contingent valuation ; Fat tails ; Truncated bids ; Shorebirds
• 刊名：Ecological Economics
• 出版年：2016
• 出版时间：September 2016
• 年：2016
• 卷：129
• 期：Complete
• 页码：210-219
• 全文大小：965 K

文摘

A yes-response function in a contingent valuation study is said to have fat tails if it has a high and slowly declining yes-response rate at high bid levels. Truncated bids refer to the practice of dropping high bid offers before a yes-response rate of near zero is reached. This is a common practice in contingent valuation. We explore the extent and implications of fat tails and truncated bids in a study of an endangered shorebird species. We find, among other things, that mean willingness to pay is quite sensitive to the highest bid offered – so much so that the choice of highest bid nearly dictates outcomes.