| dc.description.abstract | Stated preference (SP) methods collect data on consumer tastes by direct
elicitation, in contrast to revealed preference (RP) methods that infer
tastes from observed market demand behavior. Leading SP methods are
choice-based conjoint (CBC) experiments and surveys, widely used in
market research to forecast demand for new or modified products, and
contingent valuation method (CVM) elicitations, employed by environmental economists to estimate use, non-use, or total values of non-marketed
natural resources. CBC and CVM are defined and illustrated in the second
section of this chapter. The main subject of this book is CVM, and
since the critique of CVM in Hausman (1993), the progress, or lack of
progress, in refining this method to the point where it can produce reliable,
reproducible, and plausible valuations. This chapter is different, concentrating instead on SP studies of demand for ordinary consumer goods
and services where actual market experience provides a proving ground
for accuracy of SP methods, and drawing lessons from these market
applications for use and non-use valuation of environmental goods. | |
