Working Papers, Swedish Business School, Örebro University
No 2010:2:
Scale sensitivity and question order in the contingent valuation method
Henrik Andersson ()
and Mikael Svensson ()
Abstract: This study examines the effect on respondents' willingness
to pay to reduce mortality risk by the order of the question in a stated
preference study. Using answers from an experiment conducted on a Swedish
sample where respondents’ cognitive ability was measured and where they
participate in a contingent valuation survey it is found that scale
sensitivity is the strongest when respondents are asked about a smaller
risk reduction first (“Bottom-up” approach). This contradicts some previous
evidence in the literature. It is also found that the respondents’
cognitive ability is correlated with their answers being line with
theoretical predictions. The latter being important for the validity of the
answers. Hence, the results of this paper suggest that scale sensitivity is
related to the order of the questions and to respondents’ cognitive
ability.
Keywords: Cognitive ability; Contingent valuation; Mortality risk; Order effect; Scale sensitivity; (follow links to similar papers)
JEL-Codes: D80; I10; Q51; (follow links to similar papers)
29 pages, February 11, 2010
Download Statistics
Questions (including download problems) about the papers in this series should be directed to Mariann Palmér ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design by Joachim Ekebom
