How can behavioral economics inform nonmarket valuation? An example from the preference reversal literature

Jonathan E. Alevy, John A. List, Wiktor L. Adamowicz

Research output: Contribution to journalArticleResearchpeer-review

14 Citations (Scopus)

Abstract

Psychological insights have made inroads within most areas of study in economics. One area where less advance has occurred is environmental and resource economics. In this study, we examine preference reversals over evaluation modes, in which economic values critically depend on whether a good is valued jointly with others, or in isolation. The question arises because two methods for eliciting stated preferences differ in that one presents objects together and another presents them in isolation. Our empirical evidence demonstrates the import of behavioral economics and sheds new light on the possible insensitivity of valuations to the scope of the good.

Original languageEnglish
Pages (from-to)365-381
Number of pages17
JournalLand Economics
Volume87
Issue number3
Publication statusPublished - 1 Aug 2011
Externally publishedYes

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