Closed-ended contingent valuation surveys are used to assess demands in hypothetical markets and recently have been applied widely to the valuation of (non-market) environmental resources. This interviewing strategy holds considerable promise for more general market research applications. The authors describe a new maximum likelihood estimation technique for use with these special data. Unlike previously used methods, the estimated models are as easy to interpret as ordinary least squares regression results and the results can be approximated accurately by packaged probit estimation routines.
Get full access to this article
View all access options for this article.
References
1.
BishopRichard C. and ThomasA. Heberlein (1979), “Measuring Values of Extramarket Goods: Are Indirect Measures Biased?” American Journal of Agricultural Economics, 61 (December), 926–30.
2.
BishopRichard C. and ThomasA. Heberlein, andMary Jo Kealy (1983), “Contingent Valuation of Environmental Assets: Comparisons with a Simulated Market,” Natural Resources Journal, 23 (July), 619–33.
3.
CameronTrudy Ann (1987), “A New Paradigm for Valuing Non-Market Goods Using Referendum Data: Maximum Likelihood Estimation by Censored Logistic Regression,” Journal of Environmental Economics and Management, forthcoming.
4.
CameronTrudy Ann and MichelleD. James (1986), “The Determinants of Value for a Recreational Fishing Day: Estimates from a Contingent Valuation Survey,” Discussion Paper #405, Department of Economics, University of California, Los Angeles.
5.
CameronTrudy Ann and MichelleD. James (1987), “Efficient Estimation Methods for Use With ‘Closed-Ended’ Contingent Valuation Survey Data,” Review of Economics and Statistics, 69 (May), 269–76.
6.
CummingsRonald G., DavidS. Brookshire, and WilliamD. Schulze, eds. (1986), Valuing Environmental Goods: An Assessment of the Contingent Valuation Method. Totowa, NJ: Rowman and Allanheld.
7.
KmentaJan (1971), Elements of Econometrics. New York: Macmillan Publishing Company, Inc.
8.
LilienGary L. and PhilipKotler (1983), Marketing Decision Making: A Model-Building Approach. New York: Harper & Row Publishers, Inc.
9.
MitchellRobert C. and RichardT. Carson (1987), Using Surveys to Value Public Goods: The Contingent Valuation Method. Washington, DC: Resources for the Future.
10.
RandallAlan (1986), “The Possibility of Satisfactory Benefit Estimation with Contingent Markets,” in Valuing Environmental Goods: An Assessment of the Contingent Valuation Method, CummingsR. G., BrookshireD. S., and SchulzeW. D., eds. Totowa, NJ: Rowman and Allanheld, 114–22.
11.
SchmittleinDavid C. and VijayMahajan (1982), “Maximum Likelihood Estimation for an Innovation Diffusion Model of New Product Acceptance,” Marketing Science, 1 (Winter), 57–78.
12.
SellarChristine, Jean-PaulChavas, and StollJohn (1986), “Specification of the Logit Model: The Case of Valuation of Nonmarket Goods,” Journal of Environmental Economics and Management, 13 (December), 382–90.
13.
SellarChristine, Jean-PaulChavas, and StollJohn, StollJohn, and ChavasJean-Paul (1985), “Validation of Empirical Measures of Welfare Change: A Comparison of Nonmarket Techniques,” Land Economics, 61 (May), 156–75.
14.
SilkAlvin J. and GlenL. Urban (1978), “Pre-Test-Market Evaluation of New Packaged Goods: A Model and Measurement Methodology,” Journal of Marketing Research, 15 (May), 171–91.
15.
UrbanGlen L. and JohnR. Hauser (1980), Design and Marketing of New Products. Englewood Cliffs, NJ: Prentice-Hall, Inc.
