Modifying willingness to pay estimates where respondents mis-report their preferences

Balcombe, K., Bailey, A., Chalak, A. and Fraser, I. (2008) Modifying willingness to pay estimates where respondents mis-report their preferences. Applied Economics Letters, 15 (5). pp. 327-330. ISSN 1350-4851 doi: 10.1080/13504850600706123

Abstract/Summary

The likelihood for the Logit model is modified, so as to take account of uncertainty associated with mis-reporting in stated preference experiments estimating willingness to pay (WTP). Monte Carlo results demonstrate the bias imparted to estimates where there is mis-reporting. The approach is applied to a data set examining consumer preferences for food produced employing a nonpesticide technology. Our modified approach leads to WTP that are substantially downwardly revised.