Document Type

Article

Journal/Book Title/Conference

Economics Research Institute Study Paper

Volume

7

Publisher

Utah State University Department of Economics

Publication Date

2003

First Page

1

Last Page

10

Abstract

In a recent study by John Whitehead in 2002 ("Incentive Incompatibility and StartingPoint Bias in Iterative Valuation Questions"), he proposes incentive-incompatibility and startingpoint- bias tests for iterative willingness-to-pay questions. We show that if restrictions associated with the nature of starting-point bias are not imposed on the estimation, one obtains inconsistent estimates of the structural parameters and may draw inaccurate conclusions regarding the extent of incentive incompatibility and starting-point bias in contingent-valuation survey data.



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