Searching for a better willingness to pay elicitation method in rural Nigeria: The binary question with follow-up method versus the bidding game technique

Objectives: To compare the theoretical validity and predictive validity of the binary with follow-up questions technique and the bidding game, using h ypothetical and actual WTP for insecticide-treated nets (ITNs) in Nigeria. Methods: Each elicitation method was applied in one of two rural communitie s in Enugu state, Nigeria. A pre-tested interviewer-administered questionna ire was administered to household heads or representatives of households. W TP was elicited in each after presenting the scenario and showing a sample of the ITNs to the respondents. Then, within an interval of 1-2 months, the nets were sold to the respondents to compare hypothetical and actual WTP. Findings: Consistent slightly higher mean and median WTP amounts were elici ted from Mbano where the bidding game was used. The WTP technique was able to predict WTP responses correctly in 75% and 85% of cases in Orba and Mban o, respectively. Chi-square analysis did not show any statistical differenc e in values from both communities (p > 0.05). Conclusion: Though the two techniques yielded similar results, the thrust s hould be the development of a WTP elicitation method that best mimics the b argaining process in normal market situations in rural Nigeria. Such an ind igenous technique will help improve the predictive validity of the continge nt valuation method. Copyright (C) 2001 John Wiley & Sons, Ltd.