Rationality Concepts in Environmental Valuation
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https://library.oapen.org/bitstream/20.500.12657/26781/1/1003264.pdf
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https://library.oapen.org/bitstream/20.500.12657/26781/1/1003264.pdf
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https://library.oapen.org/bitstream/20.500.12657/26781/1/1003264.pdf
Author(s)
Frör, Oliver
Language
EnglishAbstract
Survey based valuation techniques like the Contingent Valuation Method (CVM) rely particularly on the premise of respondents’ rationality when answering willingness to pay (WTP) questions. Results of CVM surveys have repeatedly put this fundamental assumption into question. This study adopts a more realistic view of rationality accounting for respondents’ limited capacities to process information. Based on cognitive psychology a technique to detect and analyze the bounds of rationality inherent in WTP statements is developed. Using an empirical example, the influence of bounded rationality on the validity of CVM results is analyzed. It is shown that individual differences in information processing play a major role. From these results recommendations for future survey design are developed.
Keywords
Bounded Rationality; Concepts; Contingent Valuation; Contingent Valuation Method; Enviromental; Environmental; Frör; Rationality; Umweltbilanz; ValuationDOI
10.3726/b14029ISBN
9783631755150Publication date and place
Bern, 2018Series
Hohenheimer volkswirtschaftliche Schriften,Classification
Economic theory and philosophy
Environmental economics