Theoretical Incentive Properties of Contingent Valuation Questions

Contingent valuation studies and their results are often criticised. This paper describes the findings of an experimental survey that tests the influence of survey design on strategic behaviour.

Although being of major importance for the valuation of the benefits from environmental protection, contingent valuation studies and their results are often criticised, particularly regarding the validity of the interviewees' stated preferences.

This article deals with the problem of incentive compatibility in contingent valuation studies. It examines whether the particular scenario was chosen in a way that ensures the expression of the true preferences. Through an experimental survey carried out in Germany and Switzerland, it was examined to what extent different scenarios affect the willingness to pay. The authors did not find the expected effects as postulated theoretically in the economic literature.