Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74105
Authors: 
Leiter, Andrea M.
Pruckner, Gerald J.
Year of Publication: 
2006
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 90.2006
Abstract: 
Sensitivity (proportionality) of willingness to pay to (small) risk changes is often used as a criterion to test for valid measures of economic preferences. In a contingent valuation (CV) study conducted in Austria in February 2005 1,005 respondents were asked their willingness to pay (WTP) for preventing an increase in risk by 1/42,500 and 3/42,500, respectively. WTP for the higher risk variation is significantly higher than WTP for the lower risk change. We find evidence that those respondents who have personal experience with avalanches combine the information about future risk increase, provided in the survey, with the observed number of mortal avalanche accidents in the past. The proportionality of WTP holds if such prior experiences are taken into account and the influence of attitudinal factors in scope tests are controlled for.
Subjects: 
Contingent Valuation
Willingness to Pay
Scope Test
Sensitivity of WTP
JEL: 
D81
J17
Q54
Document Type: 
Working Paper

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