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 |
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Keywords
- Adding-up test
- Experimental valuation
- Income effect
- Willingness to pay
ASJC Scopus subject areas
- Aerospace Engineering
- Management, Monitoring, Policy and Law
Cite this
The Adding-Up Test in an Incentivized Value Elicitation Mechanism : The Role of the Income Effect. / Elbakidze, Levan; Nayga, Jr, Rodolfo M.
In: Environmental and Resource Economics, 11.08.2017, p. 1-20.Research output: Contribution to journal › Article
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TY - JOUR
T1 - The Adding-Up Test in an Incentivized Value Elicitation Mechanism
T2 - The Role of the Income Effect
AU - Elbakidze, Levan
AU - Nayga, Jr, Rodolfo M.
PY - 2017/8/11
Y1 - 2017/8/11
N2 - 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.
AB - 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.
KW - Adding-up test
KW - Experimental valuation
KW - Income effect
KW - Willingness to pay
UR - http://www.scopus.com/inward/record.url?scp=85027305616&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85027305616&partnerID=8YFLogxK
U2 - 10.1007/s10640-017-0177-9
DO - 10.1007/s10640-017-0177-9
M3 - Article
AN - SCOPUS:85027305616
SP - 1
EP - 20
JO - Environmental and Resource Economics
JF - Environmental and Resource Economics
SN - 0924-6460
ER -