Necessary Conditions for Demand Revelation in Double Referenda
8 Pages Posted: 12 Sep 2013
Date Written: May 30, 2006
This paper demonstrates a set of necessary conditions that should generate unbiased, internally consistent estimates of willingness to pay (WTP) from a double referendum mechanism. These conditions are also sufficient for demand revelation in an experimental laboratory environment. However, the control over the mechanism achieved in the lab may not be transferrable to the field and WTP estimates derived from field surveys may remain biased.
Keywords: Contingent valuation, Demand revelation, Consequential double referendum
JEL Classification: C91
Suggested Citation: Suggested Citation