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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/4098| Title: | Noise and bias in eliciting preferences |
| Keywords: | C91 C81 ddc:330 Pairwise choice WTP WTA Errors Noise Biases Entscheidung bei Risiko Willingness to pay Experiment Modell-Spezifikation Statistischer Fehler Bias Präferenztheorie |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Kiel Institute for the World Economy (IfW) Kiel |
| Description: | In the context of eliciting preferences for decision making under risk, we ask the question: "which might be the 'best' method for eliciting such preferences?". It is well known that different methods differ in terms of the bias in the elicitation; it is rather less well-known that different methods differ in terms of their noisiness. The optimal trade-off depends upon the relative magnitudes of these two effects. We examine four different elicitation mechanisms (pairwise choice, willingness-to-pay, willingness-to-accept, and certainty equivalents) and estimate both effects. Our results suggest that economists might be better advised to use what appears to be a relatively inefficient elicitation technique (i.e. pairwise choice) in order to avoid the bias in better-known and more widely-used techniques. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/4098 |
| Other Identifiers: | http://hdl.handle.net/10419/4098 ppn:549781129 |
| Appears in Collections: | EconStor |
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