Abstract
In the context of testing the construct validity of stated preference studies, some researchers advocate the use of an “adding-up test” designed to gauge whether elicited values are sufficiently sensitive to a change in the scope (i.e. size) of a good. Crucial to the applicability of this test in practice, which relies on endowing a subsample of respondents with a good free of charge, is that the income effects due to endowment are negligible. In this study, we apply the adding-up test in an experimental value elicitation format to examine the potential effect of endowment as part of the test design on the adding-up property of elicited values. The results show that the adding-up property can be affected by free provision of part of the bundle.
Original language | English |
---|---|
Pages (from-to) | 1-20 |
Number of pages | 20 |
Journal | Environmental and Resource Economics |
DOIs | |
Publication status | Accepted/In press - 2017 Aug 11 |
Externally published | Yes |
Keywords
- Adding-up test
- Experimental valuation
- Income effect
- Willingness to pay
ASJC Scopus subject areas
- Aerospace Engineering
- Management, Monitoring, Policy and Law