Rationality Concepts in Environmental Valuation

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...

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Kaituhi matua: Frör, Oliver
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I whakaputaina: Peter Lang International Academic Publishers 2021
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author Frör, Oliver
author_browse Frör, Oliver
author_facet Frör, Oliver
author_sort Frör, Oliver
collection Directory of Open Access Books
description 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.
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spelling doab-20.500.12854ir-385772025-02-11T07:33:18Z Rationality Concepts in Environmental Valuation Frör, Oliver Bounded Rationality Concepts Contingent Valuation Contingent Valuation Method Enviromental Environmental Frör Rationality Umweltbilanz Valuation thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCV Economics of specific sectors::KCVG Environmental economics 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. 2021-02-10T12:58:18Z 2019-01-10 23:55 2020-01-15 14:23:09 2020-04-01T11:22:55Z 2018 book 1003264 OCN: 1082958525 http://library.oapen.org/handle/20.500.12657/26781 9783631755150 https://directory.doabooks.org/handle/20.500.12854/38577 eng Hohenheimer volkswirtschaftliche Schriften open access image/jpeg image/jpeg image/jpeg image/jpeg image/jpeg n/a n/a n/a n/a n/a https://library.oapen.org/bitstream/20.500.12657/26781/1/1003264.pdf https://library.oapen.org/bitstream/20.500.12657/26781/1/1003264.pdf https://library.oapen.org/bitstream/20.500.12657/26781/1/1003264.pdf https://library.oapen.org/bitstream/20.500.12657/26781/1/1003264.pdf https://library.oapen.org/bitstream/20.500.12657/26781/1/1003264.pdf Peter Lang International Academic Publishers 10.3726/b14029 10.3726/b14029 44a712f0-ee17-4c08-a667-46effed595e7 9783631755150 255 Bern open access
spellingShingle Bounded Rationality
Concepts
Contingent Valuation
Contingent Valuation Method
Enviromental
Environmental
Frör
Rationality
Umweltbilanz
Valuation
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCV Economics of specific sectors::KCVG Environmental economics
Frör, Oliver
Rationality Concepts in Environmental Valuation
title Rationality Concepts in Environmental Valuation
title_full Rationality Concepts in Environmental Valuation
title_fullStr Rationality Concepts in Environmental Valuation
title_full_unstemmed Rationality Concepts in Environmental Valuation
title_short Rationality Concepts in Environmental Valuation
title_sort rationality concepts in environmental valuation
topic Bounded Rationality
Concepts
Contingent Valuation
Contingent Valuation Method
Enviromental
Environmental
Frör
Rationality
Umweltbilanz
Valuation
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCV Economics of specific sectors::KCVG Environmental economics
topic_facet Bounded Rationality
Concepts
Contingent Valuation
Contingent Valuation Method
Enviromental
Environmental
Frör
Rationality
Umweltbilanz
Valuation
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCV Economics of specific sectors::KCVG Environmental economics
url 1003264
work_keys_str_mv AT froroliver rationalityconceptsinenvironmentalvaluation