Caudill, Steven B.; Groothuis, Peter A.; Whitehead, John C. - Department of Economics, Appalachian State University - 2006
The most persistently troubling empirical result in the contingent valuation method literature is the tendency for hypothetical willingness to pay to overestimate real willingness to pay. We suggest a new approach to test and correct for hypothetical bias using a latent choice multinomial logit...