PT  - JOURNAL ARTICLE
AU  - Rekola, Mika
TI  - Lexicographic Preferences in Contingent Valuation: A Theoretical Framework with Illustrations
AID  - 10.2307/3146871
DP  - 2003 May 01
TA  - Land Economics
PG  - 277--291
VI  - 79
IP  - 2
4099  - http://le.uwpress.org/content/79/2/277.short
4100  - http://le.uwpress.org/content/79/2/277.full
SO  - Land Econ2003 May 01; 79
AB  - This paper considers some implications of L*-ordering, an incommensurable preference model proposed in earlier CV literature. The structure and existence of inverse demand functions is shown to be a function of three elements, the relationship between goods and wants, WTA/WTP formats and the endowment of the good. In a many-to-many relationship uncompensated and even compensated inverse demand functions may exist, whereas a one-to-one relationship, implicitly assumed in earlier literature, does not necessarily produce either. An illustration is provided in support of the theoretical framework, especially the hypothesis that one-to-one relationship and high share of CV responses revealing lexicographic preferences are correlated. (JEL Q26)