As is well known both the contingent valuation method (CVM) and choice modelling (CM) are stated preference methods in that they ask individuals what they would do in a particular circumstance. Each method started from a different disciplinary tradition: CVM from natural resource economics and CM from marketing. More recently, the two methods are looking more and more indistinguishable. This is especially true of applications of choice methods for economic valuation as compared to marketing purposes. Specifically, while choice methods used to focus more on conjoint analysis using ratings or rankings, they are often now done using a discrete choice (select one alternative). Contingent valuation questioning format has also evolved from open-ended questions (what is the most you would pay), to a discrete choice format (would you pay $X, yes or no). Underlying the discrete choice CVM and CM is random utility theory (McFadden, 1974; Hanemann, 1984). The random utility theory relied upon by bot
To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.