Individuals are widely believed to overstate their economic valuation of a good by a factor of two or three. This paper reports the results of a meta-analysis of hypothetical bias in 28 stated preference valuation studies that report monetary willingness-to-pay and that used the same mechanism...

Cognitive psychology is best known, to many environmental economists, through the filter of acrimonious debates over the validity of contingent valuation methods (CVM). Psychologists' views on CVM reflect concerns that are deeply rooted in their profession's history and theories. Although...