A RANDOMIZED-RESPONSE APPROACH TO DICHOTOMOUS CHOICE CONTINGENT VALUATION

In this paper we combine dichotomous choice contingent valuation (DC-C V) with the randomized response (RR) method for asking sensitive surve y questions. RR increases respondents' anonymity by allowing them to a nswer a sensitive question without revealing, with certainty, their tr ue response. We combine RR with DC-CV to test for response effects in the valuation of a public good, in a setting of expected social pressu re. While there are practical implementation issues, our findings sugg est that the RR technique is a useful tool for exploring social contex t effects. Rather than generalize from our pre-test results, we instea d emphasize the development of the experimental technique.