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This study shows that fans and people living in the region of 28 Football Bundesliga teams from all three divisions are willing to support their team financially. Survey respondents were asked for their willingness-to-pay to avoid a negative outcome (e.g., relegation) and to achieve a positive outcome (e.g., promotion). Fan bonds are applied as an alternative payment vehicle within the contingent valuation method. The results show that different factors affect the decision to support the team and the actual amount of willingness-to-pay--for attendees and nonattendees. Public goods are particularly relevant for reporting a positive willingness-to-pay. (JEL Z23, L83, H41), I. INTRODUCTION The most popular sport league in Europe is the German Football Bundesliga (soccer), averaging 43,484 fans per game during the 2013/2014 season, even greater than the English Premier [...]

One of the major criticisms of stated preference data is hypothetical bias. Using a unique dataset of both stated and actual behavior, we test for hypothetical bias of stated preference survey responses. We consider whether respondents tend to overstate their participatory sporting event behavior ex ante when compared to their actual behavior at different registration fees. We find that stated behavior accurately predicts actual behavior at a middle level of respondent certainty, overpredicts actual behavior at a lower level of certainty, and underpredicts behavior at a higher level of certainty. This result suggests that respondent uncertainty corrections can be used to mitigate hypothetical bias and stated preference data can be used to better understand actual behavior in situations where no data exist. (JEL L83, Q51, Z2), I. INTRODUCTION The contingent valuation method (CVM) elicits statements of hypothetical willingness-to-pay. In a recent symposium on contingent valuation in the Journal of Economic Perspectives, Kling, Phaneuf, and Zhao (2012) [...]

We collect contingent valuation data from 524 student survey respondents over a 3-day, 72-hour period. Data analysis of a hypothetical campus referendum focuses on time-of-day effects on willingness to pay for a renewable energy project. We find that subjects responding to the survey during the night-time hours (i.e., between 12 a.m. and 6 a.m.) do not display the law of demand, offering theoretically invalid responses to questions with important policy implications. Results from this research may have serious implications for the contingent valuation method (CVM). In short, just like your father said, nothing good happens after midnight when using the CVM. (JEL Q51), I. INTRODUCTION The contingent valuation method (CVM) is a stated preference approach to the valuation of public goods (Carson 2012a, 2012b). Preferences are 'stated' in the sense that survey respondents [...]

This paper examines the demand for hockey game trips among metropolitan and nonmetropolitan residents of Alberta, Canada. Using data on both revealed and stated preference game-trip behavior from a telephone survey conducted throughout Alberta, we estimate the effect of ticket prices, team quality, arena amenities, and capacity on the latent demand for National Hockey League hockey games. We find that lower ticket prices, higher team quality, and additional capacity encourage attendance. In the status quo scenario, consumer surplus per game is $50 for those who had attended hockey games and about 50% less for those who had not attended games. Exploiting the stated preference data, we develop a number of other consumer surplus estimates. We also include travel costs in the estimation of the demand function and estimate the full value of the game trip considering both ticket prices and travel costs. Sold-out arenas in Calgary and Edmonton generate annual consumption benefits of $40 and $35 million when only ticket prices are used to calculate consumer surplus (i.e., excluding travel costs). Considering the full-price consumer surplus for the Calgary Flames of $103 per game trip, the annual consumption benefits may be as high as $82 million. (JEL R22, L83, D61), I. INTRODUCTION When the Baltimore Orioles moved from their 1950s-vintage home in Memorial Stadium to Oriole Park at Camden Yards in 1992, a new era in stadium and arena construction [...]

The city of New Orleans suffered extensive damage as a result of Hurricane Katrina. Rebuilding involves decisions on investment in protective measures. An exhaustive list of protective measures has been studied in planning documents, with public comment solicited in town hall meetings. In this study we employ a different approach to examine public sentiment toward the selection and investment in protective measures. Our study uses a stated preference choice experiment with a stratified sample to investigate individuals' willingness-to-pay for rebuilding New Orleans's man-made storm defenses, restoring natural storm protection, and improving evacuation options through a modernized transportation system. We target residents of the New Orleans metropolitan area as well as other U.S. citizens. Our results indicate that individuals are willing to pay for increased storm protection for New Orleans, but values differ among residents of the New Orleans metropolitan area and other U.S. citizens. JEL Classification: H43, Q51, R53, 1. Introduction Hurricane Katrina made landfall on the Louisiana-Mississippi border of the Gulf Coast on August 29, 2005, leaving behind widespread devastation on the Alabama, Mississippi, and Louisiana coasts. Although [...]

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jenvman.2006.11.007 Byline: Peter A. Groothuis, Jana D. Groothuis, John C. Whitehead Keywords: Contingent valuation; Land use; Science amenities Abstract: We use the contingent valuation method to measure the amount citizens are willing to pay to improve scenic mountain-view amenities through the removal of billboards. Our approach addresses both the perceived property rights as well as the perceptions of the status quo in the southern Appalachian Mountains. We find that individuals who retire to the mountains have different preferences for land use and mountain views than individuals who have ancestors who lived in Watauga County. In the aggregate, we find that citizens are willing to pay almost one-half million dollars to remove billboards from Watauga County roadsides. This study provides insights to the debate surrounding land use along public roads. Author Affiliation: Department of Economics, Appalachian State University, Boone, NC 28608, USA Article History: Received 17 April 2006; Revised 18 October 2006; Accepted 14 November 2006

A contingent valuation method (CVM) survey in Alberta, Canada, allows estimation of the household willingness to pay (WTP) for enhancements in the province's extensive sport and recreation programs. The estimated [...]

In the wake of Hurricane Katrina, many evacuees from the Gulf region began the difficult process of deciding whether to rebuild or restart elsewhere. We examine pre-Katrina Gulf residents' decision to return to the postdisaster Gulf region--which we call the 'return migration' decision. We estimate two separate return migration models, first using data from a mail survey of individuals in the affected region and then focusing on self-administered questionnaires of evacuees in Houston. Our results indicate that return migration can be affected by household income; age; education level; and employment, marital, and home ownership status, but the results depend on the population under consideration. We find no effect of 'connection to place' on the return migration decision. Although the effect of income is relatively small within subsamples, we find a much higher proportion of middle income households planning to return than lower income households when comparing across the subsamples. In addition, the real wage differential between home and host region influences the likelihood of return. Larger implicit costs, in terms of foregone wages for returning, induce a lower likelihood of return. Exploiting this difference at the individual level, we are able to produce estimates of willingness to pay (WTP) to return home. Average WTP to return home for a sample of relatively poor households is estimated at $1.94 per hour or $3954 per year. JEL Classification: I3, J6, Q54, R23, 1. Introduction Upward of one million residents of the greater metropolitan New Orleans area evacuated on 27 and 28 August 2005, just before Hurricane Katrina struck the Gulf Coast. Evacuees [...]

Willingness to pay for quality change may depend on heterogeneous perceived quality levels. Contingent valuation studies should include measures of quality perceptions as covariates in the willingness to pay model in order to avoid omitted variable bias. Variation in quality perceptions across respondents leads to a potential endogeneity of quality perceptions. I address the potential for endogeneity bias using an instrumental variables approach in which a measure of quality perceptions is included as a determinant of willingness to pay and is simultaneously determined by various exogenous factors. The willingness to pay model is estimated jointly with quality perceptions allowing for correlation of the error terms. Using data on willingness to pay for water quality improvements in the Neuse River in North Carolina, I reject exogeneity of perceived quality. Correcting for endogeneity improves the measurement of willingness to pay by differentiating willingness to pay among respondents with heterogeneous quality perceptions. JEL Classification: Q51, Q53, 1. Introduction The contingent valuation method (CVM) is a stated preference approach to the measurement of the value of changes in the allocation of nonmarket environmental and natural resources (Mitchell [...]

An analysis of consumer's willingness to pay for policies or programs based on a given set of information is presented. The variation in consumer's behavior based on the data is also examined. In effect, the contingent value of consumer's behavior is determined with the help of mathematical games.

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.reseneeco.2004.07.002 Byline: John C. Whitehead Abstract: In order to incorporate behavioral change in the willingness to pay model we jointly estimate contingent valuation and revealed and contingent behavior data. The willingness to pay model includes the change in the number of recreation trips as an independent variable. Models that do not account for the endogeneity of trips produce inconsistent coefficient estimates. Accounting for the endogeneity of the change in trips in both independent and jointly estimated models of willingness to pay and behavior leads to an increase in the ratio of use value to total value. Author Affiliation: Appalachian State University, Department of Economics, Boone, NC 28608-2051, USA Article Note: (footnote) [star] This paper has benefited from presentations at the University of New Hampshire, the 1999 Eastern Economic Association meetings, and the 2000 Southern Economic Association meetings. The author thanks Michel Haener and two anonymous referees for a number of helpful comments and Bill Clifford and Tom Hoban for use of the data. This research was supported by the UNC Wilmington Cameron School of Business Research Fund.

Byline: John C. Whitehead (1), Suzanne S. Finney (2) Keywords: historic shipwreck; incentive incompatibility; starting point bias; willingness to pay Abstract: Many consider salvage value and tourism expenditures as the only economic values of a historic shipwreck. This paper looks at one alternative, the non-market value generated by management of shipwrecks as submerged maritime cultural resources. We consider the question: How much are people willing to pay to maintain shipwrecks in their pristine state? The contingent valuation method was implemented during summer 2001 as part of a telephone survey to households in eastern North Carolina. We find that households are willing to pay about $35 in a one-time increase in state taxes. Willingness to payis internally validated by expected relationships with prices and income but fails to pass the scope test. We speculate that we inadvertently succumbed to the well-known 'birds' problem. The double-bounded willingness to pay questions are not incentive compatible and are subject to starting point bias, despite efforts to minimize these effects. Author Affiliation: (1) Department of Economics and Finance, Cameron School of Business, University of North Carolina at Wilmington, 601 South College Road, Wilmington, NC, 28403, U.S.A (2) Department of Anthropology, University of Hawaii, U.S.A Article History: Registration Date: 11/10/2004

Survey findings of participants and non-participants taking recreational trips give an estimation of the interaction between quality improvement introduced and recreational value. An example, quality improvement leads to an increase in the number of trips taken.

Using a hedonic wage-amenity model, this paper examines the valuation of medical inputs into the production of health. The data used in this study include the incomes, demographics and measures of human capital for households in eastern North Carolina with county level medical input supply. These data allow an estimate of the marginal value of medical care inputs such as the physician to population ratio and the availability of specialized services in an area of the country where the lack of available medical care has been of particular concern to policy makers. Our results indicate that while health care inputs are not a significant determinant of earnings overall, they are important in counties that have been designated as medically underserved. In underserved counties each additional physician per 10,000 individuals in the county decreases earnings by about 11.6%. This suggests that physicians act as an amenity and workers are willing to accept lower wages to locate in counties with a higher physician to population ratio. Keywords: Hedonic; Amenity; Health production; Medical inputs

1. Introduction There is currently much interest in measuring the benefits of environmental quality improvements for policy purposes. An ongoing controversy involves the use of the contingent valuation (CV) method [...]

An analysis of the role of resource quality information in measuring willingness to pay through contingent valuation reveals that information about resource quality presented in contingent markets will result in more valid valuations of changes in allocations of environmental resources. Differences in perceived quality and true quality are found to be available to respondents from information in the contingent market.

Revealed and stated preference data should not be combined when assessing environmental quality improvements and the willingness of the recreational user to pay for improvements. Stated preferences are necessary to anticipate and enact future improvements. The data should be combined only when they both imply the same change in future user trips induced by the improvement.

The principles of environmental economics and the methods used to determine the value of environmental improvements are discussed. It is shown that contingent valuation (CV) is the only available method for determining existence values for wilderness and other natural resources. It is also argued that existence value estimation based on CV can be useful in environmental policy development.

A research study explores contingent valuation when survey respondents are ambivalent over trade-offs between money and changes environmental amenity levels. These respondents, who were asked to express their intensity of preferences via polychotomous choice questions in two separate studies, may experience difficulty in resolving such ambivalence. Results show that dichotomous choice responses seem to reflect a conservatism strategy, with ambivalent respondents having a tendency to turn down any move away from the baseline.

A study introduced tests to establish the validity and reliability of willingness-to-pay (WTP). It explores the importance of acquired information in assessing the validity and reliability of contingent values for changes in natural resources allocation. Tests were introduced for validity assessment based on relative price effects and for reliability assessment based on an alternative form of the valuation question. Results show that the set of usable WTP responses includes both on-site and off-site users of a resource.

An analytical model of nongovernmental organizations' option to preserve donated land with unknown characteristics is proposed. The option represents a choice between the maximum of the market value of the land and the preservation value of the land. Its value is positively related to the land preservation value, duration of option availability and the uncertainty of the relative values of preservation and development.

I. INTRODUCTION The increased use of dichotomous choice contingent valuation (CV) data has provided motivation for development of two major models that explain responses to contingent choices. The Hanemann (1984) [...]

The use of iterated, interval willingness-to-pay questions must be considered should be used with the contingent valuation method when considering telephone applications. Two important measurement issues are related to the contingent evaluation method, namely, choice of estimation technique and the starting point bias. Starting-point bias is tested and a correction procedure for the method is proposed. The systematic estimation of willingness-to-pay data is done by design a contingent market feature.

The specification bias from omission of relative price variables in contingent valuation functions is investigated. Omitted variable bias will cause the determinants of willingness to pay (WTP) to assume zero. The omission of relative price variables constitute policy implications. Forecast values of WTP values will be biased when empirical WTP functions are used. The effects of relative prices in empirical valuation functions should be included in future studies of contingent valuation.

When the demand for environmental preservation is not explicitly revealed in markets, motivating attitudes toward environmental preservation become important. A survey approach allows revelation and measurement of demand for environmental preservation. Indices which measure the altruistic, bequest, intrinsic, and option to use motives and other attitudes are utilized as determinants in a model that measures the demand for environmental preservation. Demand is more likely with greater preservation motives. Preservation demand also depends on individual preferences for economic development, perceptions of affordability and responsibility for preservation of the wetlands.

I. INTRODUCTION In their recent article Loomis, Gonzalez-Caban, and Gregory (1994; hereafter referred to as LGG), test the NOAA panel's (Arrow et al. 1993) recommendation that reminders of substitutes and [...]

David Adland and Arthur J. Caplan pointed out that the model proposed by Whitehead (2002) suffered from an incorrect interpretation of the shift coefficient and secondly, it omitted variables when covariates are included. Whitehead accepts their comments and presents a revised model inspired by Aadland and Caplan.

Research about the willingness to pay for changes in resource allocation of non-market items such as environmental quality suggests starting-point bias is crucial. Using iterative questions without controlling for this bias and incentive incompatibility will produce biased willing-to-pay estimates.

JOHN C. WHITEHEAD [*] Many state and local governments have subsidized the construction of arenas and stadiums for the use of professional sports teams. They often justify the subsidies by [...]

Kotchen and Reiling (hereafter KR) conduct a replication of the Loomis, Gonzalez-Caban, and Gregory (1994) test of the NOAA panel's (Arrow et al. 1993) recommendation that reminders of substitutes and [...]

We develop a temporal reliability test of the contingent valuation method. Separate random samples were administered the same telephone survey five years apart. In the retest, respondents have less favorable attitudes toward the environment. Given this result, a temporally reliable contingent valuation would find lower willingness to pay. We find that the estimates are temporally reliable. After accounting for attitudes which have changed over the five-year period, values are not significantly different five years apart. This study provides additional evidence that use of the contingent valuation method can provide useful information.for environmental policy analysis., I. INTRODUCTION Economic analysis of environmental policy often must employ non-market estimates of benefits in order to determine the efficiency of various alternatives. Contingent valuation is a method developed to [...]