Comparison of four contingent valuation methods to estimate the economic value of a pneumococcal vaccine in Bangladesh

2008 ◽  
Vol 24 (04) ◽  
pp. 481-487 ◽  
Author(s):  
Rebekah R. Heinzen ◽  
John F. P. Bridges
Keyword(s):  
Pneumococcal Vaccine ◽  
Demand Curve ◽  
Dichotomous Choice ◽  
Elicitation Method ◽  
Payment Card ◽  
Bidding Game ◽  
Elicitation Methods ◽  
Demand Curves ◽  
Elicitation Format ◽  
Choice Method

Objectives:To compare four contingent valuation elicitation methods as a means to estimate the value of a pneumococcal vaccine in Bangladesh and to test if the elicitation methods are subject to bias and if they produce valid responses.Methods:Three hundred sixty-one households with at least one child under 5 years of age were recruited in Dhaka, Bangladesh. Subjects were cluster-randomized to various elicitation methods: open-ended, dichotomous choice (at one of two asking prices), payment card (one of two cards with differing ranges). The dichotomous choice method was then followed up with a bidding game methodology, with the dichotomous choice price acting as the starting price for the bidding game. Analysis focused on summary statistics, demand curve estimation and multivariate regression analysis to test for validity and bias.Results:Thirty-one households refused to participate, leaving a total of 330 participating households (a 91.4 percent response rate). Willingness to pay estimates varied significantly across the methods (p< .001), with average estimates varying between $2.34 and $18 (US). The open-ended elicitation method was found to produce highly inflated values that were insensitive to construct validity tests. The dichotomous choice method produced quantity (demand) estimates rather than value estimates, and there was some evidence of yea saying. The payment card elicitation method was found to be affected by range bias. The bidding game elicitation method was found to be less sensitive to starting point bias and yea-saying.Conclusions:Different elicitation format do give rise to different demand curves; however, this may be partially due to the fact that they do not measure the same outcome. For example, the dichotomous choice format produces a demand curve, while the payment card, open-ended and bidding game produce inverse demand curves. All formats are prone to multiple biases. When choosing an elicitation format, it is important to first consider the purpose and use of the data. Each elicitation method has strengths and weaknesses and can be used for different purposes in technology assessment.

GIFFEN EFFECT MODEL

2020 ◽  
Vol 10 (7) ◽  
pp. 1228-1245
Author(s):  
V.I. Tsurikov ◽  
Keyword(s):  
Consumer Choice ◽  
Demand Curve ◽  
Aggregate Demand ◽  
Negative Slope ◽  
Individual Values ◽  
Effect Model ◽  
Demand Curves ◽  
Income Individual ◽  
The Mathematical Model

The mathematical model of the Giffen effect proposed in the article clearly demonstrates both the effect itself and the reasons for its manifestation. The main advantages of the model include its extreme simplicity, which opens up access to the widest circle of readers, the use of standard methods for solving the consumer choice problem, and the most important fundamental agreement with the results of the field experiment of Jensen and Miller. The model shows that any good for which there is a more expensive substitute can be of little value. This or that good is endowed with the appropriate property by a particular consumer due to his or her own preferences, income level and prevailing prices. Any good of little value, including those that can only be consumed by a high-income individual, may turn out to be Giffen’s goods. Therefore, the consumption of Giffen’s product cannot be considered as evidence of the low standard of living of the consumer. According to the model, an increase in demand for an increasingly expensive low-value good, which is the essence of the Giffen paradox, is the result of optimizing a set of goods, i.e. the result of rational consumer behavior. It is shown that for the manifestation of the Giffen effect, it is necessary that the amount of funds allocated by the consumer for the purchase of a low-value good and its more expensive substitute falls into a certain rather narrow range of values. The failures of numerous and long-term studies aimed at detecting empirical manifestations of Giffen behavior in various historical events are explained by the fact that the corresponding analysis was carried out on the basis of averaged rather than individual values of demand for all categories of consumers. As a result, the negative slope of the aggregate demand curve turned out to be dominant over the positive sections of certain individual demand curves.

scholarly journals On the value(s) of time: Workers’ value of their time depends on mode of valuation

2021 ◽  
Vol 118 (34) ◽  
pp. e2105710118
Author(s):  
Gal Smitizsky ◽  
Wendy Liu ◽  
Uri Gneezy
Keyword(s):  
Labor Market ◽  
Exchange Rates ◽  
Analytical Approach ◽  
Fixed Time ◽  
Maximum Amount ◽  
Elicitation Method ◽  
Compensation Structure ◽  
Elicitation Methods ◽  
Dollar Amount

In this paper, we investigate how individuals make time–money tradeoffs in labor contexts in which they are either asked to work to earn money or to pay money to avoid work. Theory predicts that exchange rates between time and money are invariant to the elicitation method. Results from our experiments, however, show otherwise, highlighting inconsistencies in how individuals consider their time. In the first two experiments, participants work to earn money, and we compare two incentivized elicitation methods. In the first, “Fixed-Time mode,” we fix the amount of time participants need to work and elicit the minimum dollar amount they require to do the job. In the second, “Fixed-Money mode,” we fix the amount of money we pay participants and ask for the maximum amount of time they are willing to work for that pay. We similarly vary elicitation procedures in Experiment 3 for paying money to avoid work. Translating the results into pay per hour, we find that in Fixed-Time mode, valuation of time is stable across durations, based on an analytical approach. By contrast, in Fixed-Money mode, participants increase their pay-per-hour demand when the amount of money increases, indicating a less calculated and more emotional view of time. Our results demonstrate that individuals’ value of their time of labor can be fluid and dependent on the compensation structure. Our findings have implications for theories of time valuation in the labor market.

scholarly journals EVOLUTION OF THE PRODUCTION AND PRICE OF FOREST BIOMASS FOR ENERGY

FLORESTA ◽  
2018 ◽  
Vol 49 (1) ◽  
pp. 011
Author(s):  
Thiago Manoel Sozinho ◽  
David Alexandre Buratto ◽  
Anadalvo Juazeiro Dos Santos ◽  
João Carlos Garzel Leodoro da Silva ◽  
José Roberto Frega
Keyword(s):  
Energy Production ◽  
Demand Curve ◽  
Supply And Demand ◽  
Forest Biomass ◽  
The State ◽  
Planted Forests ◽  
Native Forests ◽  
Demand Curves ◽  
The Right ◽  
Biomass For Energy

This study aimed to analyze the evolution of the production and price of biomass from native and planted forests of the state of Paraná (Brazil), between 1998 and 2015, based on the behavior of the prices of the products, according to variations of their supply or demand. The annual rates for growth of the price and quantity produced were calculated and related to the displacements of the supply and demand curves of the products. The results indicated a decrease in the quantity and an increase in the biomass price for native forests, which caused a shift in the supply curve to the left. For the biomass of planted forests, the demand curve shifted to the right due to the demand increase of this product for energy production. The behavior of both curves indicated a substitution of the biomass from native forests to biomass from planted forests due to factors related to the increase of environmental protection regarding the native forests located in the state of Paraná

Procedural Invariance Testing of the One-and-One-Half-Bound Dichotomous Choice Elicitation Method

2009 ◽  
Vol 91 (4) ◽  
pp. 806-820 ◽  
Author(s):  
Ian J Bateman ◽  
Brett H Day ◽  
Diane P Dupont ◽  
Stavros Georgiou
Keyword(s):  
Dichotomous Choice ◽  
Elicitation Method ◽  
Invariance Testing ◽  
The One ◽  
Procedural Invariance

scholarly journals How COVID-19 lockdown has impacted demand curves of Croatia and surrounding countries

2021 ◽  
Vol 70 (1) ◽  
pp. 7-13
Author(s):  
Igor Vidić ◽  
Matija Melnjak ◽  
Davor Bošnjak
Keyword(s):  
Demand Curve ◽  
Electricity Consumption ◽  
Electrical Energy ◽  
Stable Operation ◽  
Daily Routine ◽  
Total Consumption ◽  
Global Pandemic ◽  
Demand Curves ◽  
Electricity Load ◽  
Restrictive Measures

Electrical energy is a specific commodity because it can’t be stored in significant quantities, so accurate day-ahead forecasting of total consumption plays a crucial role in stable operation of the whole power system. In order to maintain the adequacy, power generation and electricity consumption have to be constantly in a balance. Electricity demand curve is very sensitive and vulnerable to a lot of different factors that can be categorized in several main groups that include social, stochastic and weather dependent factors. In condition of global pandemic caused by COVID 19, prediction of total consumption is even more challenging task. New restrictive rules, that completely changed behavior of consumers, their daily routine and habits, have been adopted in most of the European countries. Hence, this lockdown restrictive measures affected the volume of electricity consumption and the shape of demand curves as well. This paper analyzes some of the cases with very variable electricity load, due to volatile households’ behavior, on cases of Croatia and countries in the region. Additionally, results are compared with the electricity load of Italy and Sweden whose economy and industry are well developed. Consumption of Sweden was interesting to observe because of its totally different approach of mitigating corona virus, without lockdown restrictions.

Evaluation of the Recreational Benefits of Major Dams in Queensland, Australia

1989 ◽  
Vol 21 (2) ◽  
pp. 229-235
Author(s):  
G. L. Fahey
Keyword(s):  
Demand Curve ◽  
Recreational Facilities ◽  
Travel Costs ◽  
Demand Curves ◽  
Curve Method ◽  
Recreational Benefits

This paper describes the use of the “Final Clawson Demand Curve” method in the evaluation of the recreational benefits of four major dams in Queensland, Australia. The use of existing demand curves to predict the demand for recreational facilities at proposed sites was also investigated. The results indicate that the demand curves are sensitive to changes in variables such as travel costs. However, within the method is the potential to provide estimates of the recreational worth of proposed dams.

Evaluating the performance of different willingness to pay question formats for valuing environmental restoration in rural China

2006 ◽  
Vol 11 (5) ◽  
pp. 585-601 ◽  
Author(s):  
XU ZHONGMIN ◽  
JOHN LOOMIS ◽  
ZHANG ZHIQIANG ◽  
KUINO HAMAMURA
Keyword(s):  
Willingness To Pay ◽  
Rural China ◽  
Environmental Restoration ◽  
Dichotomous Choice ◽  
Chi Square ◽  
Payment Card ◽  
Chi Square Test ◽  
History Of ◽  
Question Formats

This paper compares protest rates and willingness to pay (WTP) using a payment card versus single and double bounded voter referendum contingent valuation question formats. Using a chi-square test, the payment card had a significantly higher protest rate (6.7 per cent) than the voter referendum question format (2.2 per cent). The median WTP of the single bounded and double bounded referendum format exceeds the payment card by a factor of nine and seven, respectively. The median WTP from the referendum formats represent about 8 per cent of income, while the payment card results represents about 1 per cent of income. These large differences in WTP between question formats are double what have been found in past studies. We believe this result may be due to excessive yea saying at high bid amounts in the dichotomous choice question formats. This behavior may arise in our case study in rural China because citizens have not had a long history of open elections or voting on tax referenda.

The Economic History of a Young Corporation

1941 ◽  
Vol 1 (S1) ◽  
pp. 110-111 ◽  
Author(s):  
S. B. Clough
Keyword(s):  
Economic History ◽  
Demand Curve ◽  
Supply And Demand ◽  
The Past ◽  
Demand Curves ◽  
The Future ◽  
History Of ◽  
Economic Thinking

Economics, as it is frequently taught nowadays, consists largely of supply and demand curves. Within their graceful lines are contained the wisdom of the ages—the key to the past and the barometer of the future. If superimposed on one another, these curves have all the esthetic quality of dynamistic drawings. So completely have they dominated economic thinking that when a group of economists considered the possibility of founding an Economic History Association, their first impulse was to establish a demand curve. This was done, as Professor Heaton has intimated, by Miss Anne Bezanson, who canvassed the field. She discovered that four hundred people could be counted upon immediately to support a Journal of Economic History.

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