MODELING RESPONSE INCENTIVE EFFECTS IN DICHOTOMOUS CHOICE CONTINGENT VALUATION DATA

This paper introduces model specifications that can be used to explain response incentive effects that might occur with discrete response co ntingent valuation data when follow-up responses are collected. The mo dels allow for possible random response shocks, structural shifts in w illingness to pay between payment questions and heteroskedasticity bet ween and within responses. Three well-known contingent valuation surve y datasets that include follow-up payment questions are used to empiri cally test the models.