Improving the contingent valuation method: A psychological perspective

Abstract Results of research on the social psychology of human decision making that offer direction for improving the contingent valuation method are reviewed. The paper focuses on the findings of that literature related to (1) limitations of human information processing and judgment-making abilities, (2) the influence of elicitation stimuli and expectations, and (3) quality of decision making in the face of too much or too little stress. Within the context of this literature, specific research directions are recommended that can improve the validity and reliability of the results of contingent valuation studies. More multidisciplinary studies are encouraged.

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