PT  - JOURNAL ARTICLE
AU  - Lusk, Jayson L.
AU  - Norwood, F. Bailey
TI  - An Inferred Valuation Method
AID  - 10.3368/le.85.3.500
DP  - 2009 Aug 01
TA  - Land Economics
PG  - 500--514
VI  - 85
IP  - 3
4099  - http://le.uwpress.org/content/85/3/500.short
4100  - http://le.uwpress.org/content/85/3/500.full
SO  - Land Econ2009 Aug 01; 85
AB  - Although estimates of people’s values for public goods are often needed to conduct costbenefit analysis, existing value elicitation methods are prone to a number of well-documented biases. We argue that some of these biases result because people derive utility from the act of saying they are willing to pay for a good. To counteract this phenomenon, we consider an approach that asks people to predict or infer others’ values for a good instead of asking people to state their own value. Both a conceptual model and results from a laboratory experiment lend support for the new approach. (JEL H41, Q51)