This paper demonstrates a set of necessary conditions that should generate unbiased, internally consistent estimates of willingness to pay (WTP) from a double referendum mechanism. These conditions are also sufficient for demand revelation in an experimental laboratory environment. However, the control over the mechanism achieved in the lab may not be transferrable to the field and WTP estimates derived from field surveys may remain biased. (c) 2008 Elsevier Inc. All rights reserved.
ASJC Scopus subject areas
- Economics and Econometrics
- Management, Monitoring, Policy and Law