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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Rationality Concepts in Environmental Valuation

Rationality Concepts in Environmental Valuation

Frör, Oliver
Ahlheim, Michael

Paperback

Series: Hohenheimer Volkswirtschaftliche Schriften, Book 58

EconomicsInvesting & FinanceManagement

ISBN10: 3631573367
ISBN13: 9783631573365
Publisher: Peter Lang
Published: Oct 26 2007
Pages: 244
Weight: 0.85
Height: 0.90 Width: 5.80 Depth: 8.20
Language: English
Survey based valuation techniques like the Contingent Valuation Method (CVM) rely particularly on the premise of respondents' rationality when answering willingness to pay (WTP) questions. Results of CVM surveys have repeatedly put this fundamental assumption into question. This study adopts a more realistic view of rationality accounting for respondents' limited capacities to process information. Based on cognitive psychology a technique to detect and analyze the bounds of rationality inherent in WTP statements is developed. Using an empirical example, the influence of bounded rationality on the validity of CVM results is analyzed. It is shown that individual differences in information processing play a major role. From these results recommendations for future survey design are developed.

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