Testing preference formation in learning design contingent valuation (LDCV) using advanced information and repetitive treatments

Claudia Aravena, W. George Hutchinson, Fredrik Carlsson , David I. Matthews

Research output: Chapter in Book/Report/Conference proceedingChapter (peer-reviewed)

Abstract

Policymakers have largely replaced Single Bounded Discrete Choice (SBDC) valuation by the more statistically efficient repetitive methods; Double Bounded Discrete Choice (DBDC) and Discrete Choice Experiments (DCE) . Repetitive valuation permits classification into rational preferences: (i) a priori well-formed; (ii) consistent non-arbitrary values “discovered” through repetition and experience; (Plott, 1996; List 2003) and irrational preferences; (iii) consistent but arbitrary values as “shaped” by preceding bid level (Tufano, 2010; Ariely et al., 2003) and (iv) inconsistent and arbitrary values. Policy valuations should demonstrate behaviorally rational preferences. We outline novel methods for testing this in DBDC applied to renewable energy premiums in Chile.
Original languageEnglish
Title of host publicationSchool of Business, Economics and Law, Goeteborg University. Working Papers in Economics
Place of PublicationGothenburg
Pages1-43
Number of pages44
VolumeNo. 619
ISBN (Electronic)1403-2465
Publication statusPublished - Apr 2015

Publication series

NameWorking Papers in Economics
PublisherUniversity of Gothenberg
VolumeNo. 615
ISSN (Print)1403-2473
ISSN (Electronic)1403-2465

Bibliographical note

No. 619 in a monographic series

Keywords

  • Contingent valuation;
  • double bounded discrete choice
  • repetitive learning.
  • advanced information learning
  • bid dependency.
  • theories of preference formation

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    Aravena, C., Hutchinson, W. G., Carlsson , F., & Matthews , D. I. (2015). Testing preference formation in learning design contingent valuation (LDCV) using advanced information and repetitive treatments. In School of Business, Economics and Law, Goeteborg University. Working Papers in Economics (Vol. No. 619, pp. 1-43). (Working Papers in Economics; Vol. No. 615).. https://gupea.ub.gu.se/handle/2077/38652