PT  - JOURNAL ARTICLE
AU  - John C. Whitehead
TI  - Incentive Incompatibility and Starting-Point Bias in Iterative Valuation Questions
AID  - 10.2307/3147274
DP  - 2002 May 01
TA  - Land Economics
PG  - 285--297
VI  - 78
IP  - 2
4099  - http://le.uwpress.org/content/78/2/285.short
4100  - http://le.uwpress.org/content/78/2/285.full
SO  - Land Econ2002 May 01; 78
AB  - We test for incentive incompatibility and starting-point bias to describe the effects of iterative valuation questions on willingness to pay. We compare double-, triple-, and multiple-bounded models with data from two surveys with similar designs of the valuation questions. We find that incentive incompatibility is present in both sets of data and starting-point bias is present in one. The efficiency of the willingness-to-pay estimate is improved in only one set of data. The potential loss from using iterative questions without controlling for both incentive incompatibility and starting-point bias is biased willingness-to-pay estimates. (JEL Q26)