Abstract
Economic theory predicts a decrease in valuation as the availability of substitutes increases. This paper describes a contingent valuation (CV) survey that investigates the effect of substitutes on valuation of private market goods. Using an approach that compares willingness to pay (WTP) values elicited from a CV question that accounts for substitutes with WTP values elicited from a similar question without substitutes, we find that allowing for substitutes can moderate WTP values. For the item valued in this study, a hamburger sandwich, allowing for substitutes was associated with a reduction of from 10% to 16% in stated values.
Original language | English |
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Pages (from-to) | 1153-1156 |
Number of pages | 4 |
Journal | Applied Economics Letters |
Volume | 26 |
Issue number | 14 |
DOIs | |
Publication status | Published - 2019 Aug 16 |
Externally published | Yes |
Bibliographical note
Funding Information:This work was supported by the U.S. Department of Agriculture-National Institute of Food and Agriculture (USDA-NIFA) Coordinated Agricultural Project (CAP) grant, titled Shiga-toxigenic Escherichia coli (STEC) in the Beef Chain: Assessing and Mitigating the Risk by Translational Science, Education and Outreach [Award # 2012-68003-30155].
Publisher Copyright:
© 2018, © 2018 Informa UK Limited, trading as Taylor & Francis Group.
Keywords
- Contingent valuation
- field substitutes
- market good
ASJC Scopus subject areas
- Economics and Econometrics