Starting-point bias and respondent uncertainty in dichotomous choice contingent valuation surveys

Abstract

In this article, we develop a dichotomous choice model with follow-up questions that describes the willingness to pay being uncertain in an interval. The initial response is subject to starting point bias. Our model provides an alternative interpretation of the starting point bias in the dichotomous choice valuation surveys. Using the Exxon Valdez survey, we show that, when uncertain, individuals tend to answer "yes".starting point bias ; preference uncertainty ; contingent valuation