External Validity of Contingent Valuation: Comparing Hypothetical and Actual Payments

Mandy Ryan; Emmanouil Mentzakis; Suthi Jareinpituk; John Cairns

doi:10.1002/hec.3436

External Validity of Contingent Valuation: Comparing Hypothetical and Actual Payments

Mandy Ryan^* (Corresponding Author), Emmanouil Mentzakis, Suthi Jareinpituk, John Cairns

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

13 Citations (Scopus)

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Abstract

Whilst contingent valuation is increasingly used in economics to value benefits, questions remain concerning its external validity i.e. do hypothetical responses match actual responses? We present results from the first within sample field test. Whilst Hypothetical No are always an Actual No, Hypothetical Yes exceed Actual Yes responses. A constant rate of response reversals across bids/prices could suggest theoretically consistent option value responses. Certainty calibrations (verbal and numerical response scales) minimize hypothetical-actual discrepancies offering a useful solution. Helping respondents resolve uncertainty may reduce the discrepancy between hypothetical and actual payments, and thus lead to more accurate policy recommendations.

Original language	English
Pages (from-to)	1467-1473
Number of pages	7
Journal	Health Economics
Volume	26
Issue number	11
Early online date	9 Oct 2016
DOIs	https://doi.org/10.1002/hec.3436
Publication status	Published - Nov 2017

Bibliographical note

We thank respondents for taking part in the study and 2 anonymous reviewers for their helpful comments. Financial support from the University of Aberdeen and the Scottish Government Health and Social Care Directorates is acknowledged.

Keywords

contingent valuation
external validity
certainty

Access to Document

10.1002/hec.3436Licence: Unspecified

Accepted Manuscript
This is the peer reviewed version of the following article: Ryan, M., Mentzakis, E., Jareinpituk, S., and Cairns, J. (2017) External Validity of Contingent Valuation: Comparing Hypothetical and Actual Payments. Health Econ., 26: 1467–1473., which has been published in final form at the DOI: 10.1002/hec.3436. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Accepted author manuscript, 63.2 KBLicence: Unspecified

Mandy Ryan
- School of Medicine, Medical Sciences & Nutrition, Health Economics Research Unit - Director of H E R U
- Institute of Applied Health Sciences
Person: Academic

Cite this

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AU - Cairns, John

N1 - We thank respondents for taking part in the study and 2 anonymous reviewers for their helpful comments. Financial support from the University of Aberdeen and the Scottish Government Health and Social Care Directorates is acknowledged.

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External Validity of Contingent Valuation: Comparing Hypothetical and Actual Payments

Abstract

Bibliographical note

Keywords

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