WILLINGNESS-TO-PAY FOR QUALITY IMPROVEMENTS - COMPARATIVE STATICS ANDINTERPRETATION OF CONTINGENT VALUATION RESULTS

This paper extends variation function theory by examining the effects of changes in prices, quality, and income on willingness to pay for qu ality change. Comparative static effects are found for both on-site us ers and nonusers of the resource. These results are used to interpret contingent valuation empirical models. For example, the substitution a nd complementary relationships between trips to natural resource sites can be identified. This paper also suggests tests for comparison of c ontingent valuation with recreation demand models and other tests of v alidity.