Willingness‐To‐Pay Question Format Effects in Contingent Valuation Studies

Abstract

Abstract The willingness‐to‐pay (WTP) or willingness‐to‐accept (WTA) question is the central focus of any contingent evaluation (CV) exercise, and is the point at which the valuation being sought is elicited. However, a review of the literature reveals a variety of methods for asking such questions, and in this chapter results are presented from a study examining the impact of varying the elicitation method for WTP responses, and the results show that each is open to criticism. Five approaches are assessed: open‐ended, single‐bound dichotomous‐choice, double‐bound dichotomous‐choice, triple‐bound dichotomous‐choice, and iterative bidding. Particular attention is paid to the dichotomous‐choice approaches, which are dominant in recent literature.