Comparative reliability of the dichotomous choice and open-ended contingent valuation techniques

Abstract The comparative reliability of dichotomous choice and open-ended contingent valuation methods (CVM) is evaluated by resurvey of the same households 9 months after their original survey. Test-retest correlations on willingness to pay are statistically significant at the 1% level and range from 0.57 for the dichotomous choice CVM to 0.62 for the open-ended CVM. The test-retest correlations were not statistically different between dichotomous choice and open-ended CVM. A likelihood ratio test for temporal stability of each method's willingness to pay functions indicates stability half of the time for both methods.

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