Publication:

VALUATION UNDER FUZZY PREFERENCES: AN APPLICATION TO MULTIPLE BOUND UNCERTAINTY CHOICE ELICITATION (2012)

Author(s): Carson KS, Chilton S, Hutchinson G

    Abstract: This paper reports the results of an experiment in which subjects with fuzzy induced values vote in a public goods referendum. The experiments demonstrate that if subjects’ preferences for a good are vague in the sense described by fuzzy numbers, their behavior in a referendum for a public good diverges significantly from what standard utility theory predicts when preferences are crisp. By exploiting the direct link between multiple bond uncertainty choice elicitation and fuzzy numbers we are subsequently able to incorporate this feature into the analysis of field WTP data and demonstrate how information about the fuzziness of a respondent’s preferences obtained from payment card survey data can be incorporated into an interval data estimator of willingness to pay.

    Notes: To be submitted to J of environmental Economics and Mangement (ABS 4)

      • Publication type: Article
      • Bibliographic status: In Preparation