"Graduate and Postdoctoral Studies"@en . "DSpace"@en . "UBCV"@en . "Gregory, Robin Scott"@en . "2010-04-13T15:48:45Z"@en . "1982"@en . "Doctor of Philosophy - PhD"@en . "University of British Columbia"@en . "This study evaluates a number of different approaches which have been used to estimate the value of goods and activities which are not traded in conventional private markets. Experimental evidence is obtained from surveys of individuals' expressed preferences for a number of different goods and services, with emphasis placed on values associated with the natural environment.\r\nBoth contingent and real questions are used, with subjects' responses to hypothetical situations shown to correspond closely to the behavior which is observed when real transactions are employed.\r\nA central concern of this thesis is the comparison of measures of economic value based on an individual's willingness to pay to obtain or retain a good and the amount of compensation which is demanded if it is relinquished.\r\nIn contrast to prevailing economic theory, these two approaches are shown to yield estimates of value which in many cases are systematically and significantly different. Four principal reasons for this disparity are advanced and each is discussed in the light of evidence developed as part of this as well as previous studies. These are the size of the good or payment level under consideration, the availability of substitutes, the perceived legitimacy of the transaction and the influence of responsibility costs, regret or other process considerations.\r\nEmpirical evidence is also developed on several other concerns which arise when hypothetical questions are used to value non-market goods. These include the selection of a preferred payment measure, the significance of motivational or cognitive biases, and the potential influence of both framing effects and a number of behavioral considerations. In each case the analysis\r\n\r\nof individuals' responses leads to an improved understanding of key methodological\r\nconsiderations and suggests additional research opportunities."@en . "https://circle.library.ubc.ca/rest/handle/2429/23457?expand=metadata"@en . "VALUING NON-MARKET GOODS: AN ANALYSIS OF ALTERNATIVE APPROACHES by ROBIN SCOTT GREGORY B.A., Y a l e U n i v e r s i t y , 1972 M.A., The U n i v e r s i t y o f B r i t i s h C o l u m b i a , 1974 A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY i n THE FACULTY OF GRADUATE STUDIES , \" ( I n t e r d i s c i p l i n a r y S t u d i e s ) We a c c e p t t h i s t h e s i s as c o n f o r m i n g t o t h e r e q u i r e d s t a n d a r d THE UNIVERSITY OF BRITISH COLUMBIA dune 1982 . Q) Robin S c o t t G r e g o r y , 1982 In presenting t h i s thesis i n p a r t i a l f u l f i l m e n t of the requirements for an advanced degree at the University of B r i t i s h Columbia, I agree that the Library s h a l l make i t f r e e l y available for reference and study. I further agree that permission for extensive copying of t h i s thesis for scholarly purposes may be granted by the head of my department or by his or her representatives. I t i s understood that copying or publication of t h i s thesis for f i n a n c i a l gain s h a l l not be allowed without my written permission. Department of The University of B r i t i s h Columbia 1956 Main Mall Vancouver, Canada V6T 1Y3 D a t e < T w V** . 1***2, i i ABSTRACT T h i s s t u d y e v a l u a t e s a number o f d i f f e r e n t approaches which have been used t o e s t i m a t e t h e v a l u e o f goods and a c t i v i t i e s which a r e not t r a d e d i n c o n v e n t i o n a l p r i v a t e m a r k e t s . E x p e r i m e n t a l e v i d e n c e i s o b t a i n e d from s u r v e y s o f i n d i v i d u a l s ' e x p r e s s e d p r e f e r e n c e s f o r a number o f d i f f e r e n t goods and s e r v i c e s , w i t h emphasis p l a c e d on v a l u e s a s s o c i a t e d w i t h the n a t u r a l e n v i r o n -ment. Both c o n t i n g e n t and r e a l q u e s t i o n s a r e u sed, w i t h s u b j e c t s ' r e s p o n s e s t o h y p o t h e t i c a l s i t u a t i o n s shown t o c o r r e s p o n d c l o s e l y t o the b e h a v i o r which i s o b s e r v e d when r e a l t r a n s a c t i o n s a r e employed. A c e n t r a l c o n c e r n o f t h i s t h e s i s i s t h e comparison o f measures o f economic v a l u e based on an i n d i v i d u a l ' s w i l l i n g n e s s t o pay t o o b t a i n o r r e t a i n a good and t h e amount o f c o m p e n s a t i o n w h i c h i s demanded i f i t i s r e -l i n q u i s h e d . In c o n t r a s t t o p r e v a i l i n g economic t h e o r y , t h e s e two a p proaches a r e shown t o y i e l d e s t i m a t e s o f v a l u e which i n many c a s e s a r e s y s t e m a t i c a l l y and s i g n i f i c a n t l y d i f f e r e n t . Four p r i n c i p a l r e a s o n s f o r t h i s d i s p a r i t y a r e advanced and each i s d i s c u s s e d i n the l i g h t o f e v i d e n c e d e v e l o p e d as p a r t o f t h i s as w e l l as p r e v i o u s s t u d i e s . These a r e t h e s i z e o f t h e good o r payment l e v e l under c o n s i d e r a t i o n , the a v a i l a b i l i t y o f s u b s t i t u t e s , the p e r c e i v e d l e g i t i m a c y o f the t r a n s a c t i o n and the i n f l u e n c e o f r e s p o n s i b i l i t y c o s t s , r e g r e t o r o t h e r p r o c e s s c o n s i d e r a t i o n s . E m p i r i c a l e v i d e n c e i s a l s o d e v e l o p e d on s e v e r a l o t h e r c o n c e r n s which a r i s e when h y p o t h e t i c a l q u e s t i o n s a r e used t o v a l u e non-market goods. These i n c l u d e t h e s e l e c t i o n o f a p r e f e r r e d payment measure, the s i g n i f i c a n c e o f m o t i v a t i o n a l o r c o g n i t i v e b i a s e s , and the p o t e n t i a l i n f l u e n c e o f both f r a m i n g e f f e c t s and a number o f b e h a v i o r a l c o n s i d e r a t i o n s . In each case the a n a l y s i s i i i o f i n d i v i d u a l s ' r e s p o n s e s l e a d s t o an improved u n d e r s t a n d i n g o f key method-o l o g i c a l c o n s i d e r a t i o n s and s u g g e s t s a d d i t i o n a l r e s e a r c h o p p o r t u n i t i e s . i v TABLE OF CONTENTS ABSTRACT i i LIST OF TABLES AND FIGURES v i C h a p t e r I. INTRODUCTION 1 I I . EVALUATION CONCERNS IN THE MEASUREMENT OF NON-MARKET VALUES .. 4 Measures o f Economic V a l u e 4 C o n c e p t u a l Measures o f Consumer's S u r p l u s 9 E m p i r i c a l Measures o f Consumer's S u r p l u s 15 Consumer's S u r p l u s and t h e S i g n i f i c a n c e o f E n t i t l e m e n t s ... 21 I I I . SURVEY MEASURES OF NON-MARKET ENVIRONMENTAL VALUES 29 IV. BEHAVIORAL CONCERNS IN THE MEASUREMENT OF NON-MARKET VALUES . . 46 The P e r c e p t i o n o f U t i l i t y 46 The S i g n i f i c a n c e o f B i a s 53 M o t i v a t i o n a l B i a s e s . . 55 S t r a t e g i c B i a s 56 I n f o r m a t i o n B i a s 57 H y p o t h e t i c a l B i a s 58 C o g n i t i v e B i a s e s . . 62 R e p r e s e n t a t i v e B i a s 63 A v a i l a b i l i t y B i a s 64 A n c h o r i n g B i a s 64 O v e r c o n f i d e n c e B i a s 65 C o n t e x t u a l B i a s 66 D e b i a s i n g S t r a t e g i e s 67 V. RESEARCH DESIGN AND SURVEY PROCEDURES . . . . . 70 S e l e c t e d Problem A r e a s 70 D i f f e r e n c e s i n Payment and Compensation Measures o f V a l u e . 71 Comparison o f A l t e r n a t i v e H y p o t h e t i c a l Measures 71 Comparison o f H y p o t h e t i c a l and A c t u a l Responses 72 I n f l u e n c e o f Framing E f f e c t s 72 I n f l u e n c e o f A n c h o r i n g B i a s e s 73 I n f l u e n c e o f P r o c e s s V a r i a b l e s 73 V S u r v e y Instrument C h a r a c t e r i s t i c s 73 S e l e c t i o n o f Survey Q u e s t i o n s 76 S u r v e y s Conducted a t t h e U n i v e r s i t y o f B r i t i s h Columbia ... 76 S u r v e y s Conducted a t t h e P r o v i n c i a l Museum 78 V I . ANALYSIS OF SURVEY RESULTS 80 D i f f e r e n c e s i n Payment and Compensation Measures o f V a l u e ... 80 Comparison o f A l t e r n a t i v e H y p o t h e t i c a l Measures . . 95 Comparison o f H y p o t h e t i c a l and A c t u a l Responses 103 I n f l u e n c e o f Framing E f f e c t s 112 I n f l u e n c e o f A n c h o r i n g B i a s e s 118 I n f l u e n c e o f P r o c e s s V a r i a b l e s 132 V I I . SURVEY IMPLICATIONS AND FUTURE RESEARCH PRIORITIES 141 D i s p a r i t i e s i n Payment and Compensation Measures o f V a l u e ... 142 Reasons f o r t h e D i s p a r i t y 144 S i z e 144 L e g i t i m a c y 145 S u b s t i t u t e s 149 P r o c e s s C o n s i d e r a t i o n s 151 I m p l i c a t i o n s o f t h e D i s p a r i t y 154 The Role o f H y p o t h e t i c a l Q u e s t i o n s 157 G e n e r a l Concerns A s s o c i a t e d With H y p o t h e t i c a l Q u e s t i o n s . . . 160 S p e c i f i c Concerns A s s o c i a t e d With H y p o t h e t i c a l Q u e s t i o n s . . 161 V a l u a t i o n Approach 161 Payment Measure 162 M o t i v a t i o n a l B i a s e s 162 C o g n i t i v e B i a s e s 163 Framing E f f e c t s 163 P r o c e s s C o n s i d e r a t i o n s 164 REFERENCES 165 APPENDIX 171 v i LIST OF TABLES AND FIGURES T a b l e s 1 P e r c e n t a g e o f Respondents I n d i c a t i n g D e s i r e t o P a r t i c i p a t e i n H y p o t h e t i c a l L o t t e r i e s . . 98 2 P e r c e n t a g e o f Respondents I n d i c a t i n g D e s i r e t o P a r t i c i p a t e i n A c t u a l L o t t e r i e s 106 F i g u r e s 1 C l a s s e s o f Economic Goods 4 2 Consumer's S u r p l u s Measures: P r i c e Change 11 3 Consumer's S u r p l u s Measures: Q u a n t i t y Change 11 4 A H y p o t h e t i c a l V a l u e F u n c t i o n 51 5 A H y p o t h e t i c a l W e i g h t i n g F u n c t i o n 51 CHAPTER I INTRODUCTION People v a l u e e v e r y t h i n g t h a t t h e y do and use. When p r i v a t e markets e x i s t , t h e p r i c e o f a good p r o v i d e s an i n d i c a t i o n o f i t s r e l a t i v e v a l u e . I n d i v i d u a l s can then e x p r e s s t h e i r p r e f e r e n c e s by d e c i d i n g whether t o pur c h a s e t h e good o r a c t i v i t y a t a s p e c i f i e d p r i c e . When markets do n o t e x i s t and no p r i c e s a r e c h a r g e d t o i n d i v i d u a l u s e r s o f a r e s o u r c e , o t h e r mechanisms must be employed t o gauge t h e v a l u e o f a good o r a c t i v i t y . D e c i s i o n s o f t h i s t y p e a r e q u i t e common, f o r example, when an i t e m i s d i s -t r i b u t e d t h r o u g h t h e p u b l i c s e c t o r . T h i s s t u d y e v a l u a t e s a number o f d i f f e r e n t approaches which have been d e v e l o p e d t o a s s i s t i n e s t i m a t i n g t h e v a l u e o f non-market goods. A c e n t r a l c o n c e r n i s t h e comparison o f two p r i n c i p a l measures o f economic v a l u e , which a r e based on an i n d i v i d u a l ' s w i l l i n g n e s s t o pay f o r a good and th e amount o f compensation t h a t i s demanded i f i t i s r e l i n q u i s h e d . In con-t r a s t t o c o n v e n t i o n a l t h e o r y , t h e r e s u l t a n t measures o f v a l u e a r e shown t o be s y s t e m a t i c a l l y and s i g n i f i c a n t l y d i f f e r e n t . Four p r i n c i p a l r e a s o n s f o r the d i s p a r i t y a r e advanced on the b a s i s o f e x p e r i m e n t a l i n f o r m a t i o n o b t a i n e d i n s u r v e y s o f i n d i v i d u a l s ' e x p r e s s e d p r e f e r e n c e s f o r a number o f d i f f e r e n t goods -and s e r v i c e s . The d i s c u s s i o n emphasizes v a l u e s a s s o c i a t e d w i t h t h e n a t u r a l e n v i r o n -ment, and compares s u r v e y measures o f i n d i v i d u a l s ' e x p r e s s e d p r e f e r e n c e s f o r key e n v i r o n m e n t a l s e r v i c e s - - a i r and water q u a l i t y , t h e p r o t e c t i o n o f t h r e a t e n e d e n v i r o n m e n t s o r animal s p e c i e s , a c c e s s t o u n i n h i b i t e d v i e w s - -1 2 under a number o f d i f f e r e n t e x p e r i m e n t a l c o n t e x t s . Both h y p o t h e t i c a l and r e a l q u e s t i o n s a r e used t o p r o v i d e measures o f i n d i v i d u a l s ' v a l u e s , w i t h a l t e r n a t i v e a p p r o a c h e s compared on t h e b a s i s o f s u b j e c t s ' r e s p o n s e s . Hypo-t h e t i c a l measures o f v a l u e a r e shown t o c o r r e s p o n d s u r p r i s i n g l y c l o s e l y t o e s t i m a t e s based on i n d i v i d u a l s ' o b s e r v e d b e h a v i o r when r e a l t r a n s a c t i o n s a r e employed. A number o f d i f f i c u l t i e s which may a r i s e when u s i n g h y p o t h e t -i c a l q u e s t i o n s a r e a l s o i n v e s t i g a t e d and d i s c u s s e d i n t h e c o n t e x t o f q u e s t i o n n a i r e r e s p o n s e s as w e l l as p r e v i o u s approaches t o the measurement o f non-market v a l u e s . E x p e r i m e n t a l r e s u l t s a r e p r e s e n t e d f o l l o w i n g a c r i t i c a l r e v i e w o f e a r l i e r r e s e a r c h . The second c h a p t e r o f t h i s s t u d y examines a number o f c o n c e r n s which a r i s e when h y p o t h e t i c a l q u e s t i o n s a r e used t o measure the economic v a l u e o f non-market goods. The d i s c u s s i o n c e n t e r s on t h e d i s p a r i t y between c o n c e p t u a l a p p r o a c h e s , which s u g g e s t t h a t d i f f e r e n c e s between w i l l i n g n e s s t o pay and c o m p e n s a t i o n demanded measures o f consumer's s u r p l u s s h o u l d be n e g l i g i b l e and the c h o i c e between methods t h e r e f o r e i n s i g n i f i c a n t , and an i n c r e a s i n g number o f e m p i r i c a l r e s u l t s which s u g g e s t t h a t d i f f e r e n c e s between.the two methods a r e both p e r v a s i v e and s u b s t a n t i a l . W i d e l y d i v e r -gent e x p l a n a t i o n s f o r t h i s d i s p a r i t y have been advanced, and the i m p l i c a t i o n s o f t h e s e a r e examined i n some d e t a i l . F i n a l l y , t h e s i g n i f i c a n c e o f e n t i t l e -ments and t h e p e r c e i v e d r i g h t s o f i n d i v i d u a l s a r e d i s c u s s e d i n t h e c o n t e x t o f both l e g a l and economic arguments r e g a r d i n g s e l e c t i o n o f t h e more a p p r o p r i a t e measure o f changes i n s o c i a l w e l f a r e . P r e v i o u s s u r v e y measures o f non-market e n v i r o n m e n t a l v a l u e s a r e c o n s i d e r e d i n C h a p t e r I I I . S t u d i e s which have employed h y p o t h e t i c a l measures i n t h e c o n t e x t o f b i d d i n g games, open-ended and c l o s e d - e n d e d e v a l u a t i o n a p p r o a c h e s a r e r e v i e w e d and a number o f q u e s t i o n s a r e r a i s e d r e g a r d i n g both 3 e x p e r i m e n t a l d e s i g n and the i n t e r p r e t a t i o n o f s u r v e y r e s u l t s . P a r t i c u l a r a t t e n t i o n i s p a i d t o the p o t e n t i a l impact o f s e v e r a l s o u r c e s o f b i a s on r e s p o n d e n t s ' e x p r e s s e d measures o f v a l u e . The f o u r t h c h a p t e r o f t h i s s t u d y s t r e s s e s b e h a v i o r a l a s p e c t s o f m e a s u r i n g non-market v a l u e s , and a t t e m p t s t o d e l i n e a t e some o f t h e more i m p o r t a n t a s s u m p t i o n s which have been made r e g a r d i n g the p r o c e s s by which a p e r s o n ' s v a l u e s a r e formed and e v a l u a t e d . A major emphasis o f the c h a p t e r i s t h e i n f l u e n c e o f m o t i v a t i o n a l and c o g n i t i v e s o u r c e s o f b i a s i n t h e com-m u n i c a t i o n o f s y s t e m a t i c a l l y d i s t o r t e d e x p r e s s i o n s o f p r e f e r e n c e . A f i f t h c h a p t e r b r i e f l y e x p l a i n s t h e r e s e a r c h d e s i g n and s u r v e y p r o c e d u r e s t h a t have been used i n t h i s s t u d y . The d i s c u s s i o n o u t l i n e s s i x m a j o r problem a r e a s f o r which e m p i r i c a l d a t a has been o b t a i n e d , p r e s e n t s the d e s i g n o f t h e e x p e r i m e n t s and r e v i e w s t h e i m p l e m e n t a t i o n p r o c e d u r e s which were employed. C h a p t e r V I , which c o n s t i t u t e s t h e h e a r t o f t h e d i s s e r t a t i o n , t hen p r e s e n t s t h e key r e s u l t s o f t h e e x p e r i m e n t a l t e s t s and a n a l y z e s the major f i n d i n g s o f t h e s t u d y . S t a t i s t i c a l t e s t s o f s i g n i f i c a n c e a r e i n c l u d e d f o r each c o m p a r i s o n , a l o n g w i t h a d i s c u s s i o n o f the p r i n c i p a l i m p l i c a t i o n s . The a n a l y s i s o f s t u d y r e s u l t s y i e l d s a d d i t i o n a l i n f o r m a t i o n r e g a r d i n g the b a s i s o f t h e d i s p a r i t y between payment and compensation measures o f v a l u e . T h i s d i s c u s s i o n i s p r e s e n t e d i n C h a p t e r V I I , which a l s o examines the c i r c u m s t a n c e s under which one measure i s l i k e l y t o p r o v i d e a more a c c u r a t e e s t i m a t e o f a n t i c i p a t e d changes i n s o c i a l w e l f a r e . A f i n a l s e c t i o n r e v i e w s t h e r o l e o f h y p o t h e t i c a l methods and c o n c l u d e s t h a t , w h i l e a t t e n t i o n must be p a i d t o a number o f s p e c i f i c c o n c e r n s , c o n t i n g e n t approaches w i l l i n many c a s e s p r o v i d e a p r e f e r r e d measure o f t h e v a l u e which i n d i v i d u a l s p l a c e on a wide range o f non-market goods. 4 CHAPTER II EVALUATION CONCERNS IN THE MEASUREMENT OF NON-MARKET VALUES MEASURES OF ECONOMIC VALUE B e n e f i t s d e r i v e d from t h e consumption o f a good a r e based i n f o u r p r i n c i p a l t y p e s o f i n t e r a c t i o n , as shown i n F i g u r e 1. I f use o f t h e good can be r a t i o n e d , so t h a t i t s p r o v i s i o n t o one i n d i v i d u a l does n o t n e c e s s a r i l y i m p l y i t s p r o v i s i o n t o o t h e r s , t h e n i t i s u t i l i z e d as a p r i v a t e good (Box a ) . e x c l u s i o n non-e x c l u s i o n r i v a l r y n o n - r i v a l r y F i g u r e 1 C l a s s e s o f Economic Goods In t h e c a s e o f e n v i r o n m e n t a l goods t h i s i s t y p i c a l o f v a l u e s d e r i v e d from t h e c o n v e n t i o n a l e x t r a c t i v e o r commodity-based n a t u r a l r e s o u r c e i n d u s t r i e s whose o u t p u t i s s o l d i n w e l l - e s t a b l i s h e d m a r k e t s . E x c l u s i o n i s not p o s s i b l e i n t h e c a s e o f t r u e common-property r e s o u r c e s (Box b) but r i v a l r y among u s e r s \u00E2\u0080\u0094 w h e r e consumption by one p e r s o n impedes o r p r o h i b i t s t h e consumption o f an u n d i -m i n i s h e d q u a n t i t y o f the same good by o t h e r s \u00E2\u0080\u0094 r e m a i n s . T h i s . i s t h e s o u r c e o f t h e w e l l - a d v e r t i s e d common p r o p e r t y problem which b e s e t s managers o f , f o r example, ocean f i s h e r i e s o r o i l p o o l s . The o c c u r r e n c e o f n o n - r i v a l r y . s i m u l t a n e -o u s l y w i t h e x c l u s i o n i s c h a r a c t e r i s t i c o f a c o l l e c t i v e good (Box c ) such as a 5 campground o r t h e a t r e w i t h unused c a p a c i t y . The use o f p u b l i c goods (Box d ) , t h e g e n e r a l c l a s s o f i n t e r a c t i o n w i t h which t h i s s t u d y i s p a r t i c u l a r l y c o n c e r n e d , i s both n o n - e x c l u s i v e and (up t o some p o i n t ) f r e e o f r i v a l r y among u s e r s . As a number o f a u t h o r s have emphasized, t h e s e c h a r a c t e r i s t i c s n e a r l y d e s c r i b e many p u b l i c l y o r even p r i v -a t e l y p r o v i d e d ( r a t h e r than pure p u b l i c ) goods such as h i g h e r e d u c a t i o n o r sewage d i s p o s a l which a r e produced under c o n d i t i o n s o f v e r y low o r n e g l i g i b l e m a r g i n a l c o s t s (Dorfman, 1966). With a t r u e p u b l i c good, however, t h e r e a r e r e a l l y no m a r g i n a l c o s t s t h a t can be a s s e s s e d a g a i n s t a n o t h e r i n d i v i d u a l ' s use: t h e r e i s both n o n - r i v a l r y i n consumption and n o n - e x c l u s i o n from consump-t i o n . In some c a s e s - - f o r example, f l o u r i d a t e d m u n i c i p a l water s u p p l i e s o r a i r b o r n e r a d i a t i o n \u00E2\u0080\u0094 t h e u s e r s t h e m s e l v e s may be u n c o n s c i o u s o r even u n i n t e n -t i o n a l consumers o f t h e p r o d u c t . F o r many p r i v a t e goods t h a t a r e t r a d e d i n r e a s o n a b l y c o m p e t i t i v e m a r k e t s , d i r e c t l y o b s e r v e d p r i c e s can be t a k e n as an i n i t i a l measure o f ec o n -omic v a l u e . But f o r most p u b l i c goods, i n f o r m a t i o n on r e l a t i v e p r i c e s w i l l e i t h e r be u n a v a i l a b l e o r can o n l y be o b t a i n e d from markets t h a t have no r e a l c o m p e t i t i v e b a s i s . In such c a s e s , more i n d i r e c t e s t i m a t i o n p r o c e d u r e s must be employed t o e s t i m a t e t he v a l u e o f a good. I n c r e a s e s i n w e l f a r e t h a t a r e d e r i v e d by i n d i v i d u a l s can then be added t o o b t a i n an e s t i m a t e o f a n t i c i p a t e d changes i n s o c i a l w e l f a r e , a l t h o u g h summation p r o c e d u r e s w i l l d i f f e r f o r p r i v a t e and p u b l i c good b e n e f i t s s i n c e o n l y w i t h a p u b l i c good can a s i n g l e u n i t be s i m u l t a n e o u s l y e n j o y e d by many u s e r s . The c o n t e x t f o r i n t e r p r e t i n g i n f o r m a t i o n on peoples\"' v a l u e s w i l l a l s o d i f f e r a c c o r d i n g t o t h e dominant t y p e o f i n t e r a c t i o n t h a t o c c u r s . I f b e n e f i t s a r e l a r g e l y p r i v a t e then both t h e a v a i l a b l e q u a n t i t y and the a s k i n g p r i c e o f th e good w i l l t h e o r e t i c a l l y r e f l e c t i n d i v i d u a l c h o i c e s , and market b e h a v i o r 6 may f u r n i s h a t l e a s t a f i r s t a p p r o x i m a t i o n o f p e o p l e ' s t r u e p r e f e r e n c e s . In th e c a s e o f non-marketed goods, however, t h e i n d i v i d u a l has l i t t l e o r no c h o i c e r e g a r d i n g the q u a n t i t y p r o v i d e d and no d i r e c t means o f r e s p o n s e t o changes i n p r i c e . As a r e s u l t , much o f t h e w e i 1 - d e v e l o p e d l o g i c o f economics must be s e t a s i d e and d e c i s i o n s r e g a r d i n g t h e p r o v i s i o n o r use o f non-marketed r e s o u r c e s a r e f o r c e d t o r e l y more h e a v i l y on p o l i t i c a l judgements and d e c i s i o n h e u r i s t i c s . T h r e e major a p p r o a c h e s have been d e v e l o p e d by s o c i a l s c i e n t i s t s t o a s s i s t i n e s t i m a t i n g the v a l u e o f goods which a r e not bought and s o l d i n con-v e n t i o n a l m a r k e t s . While each o f t h e s e methods has c o n t r i b u t e d t o t h i s s t u d y , both t h e n a t u r e o f t h e non-market goods under c o n s i d e r a t i o n and the d e s i r e t o compare a l t e r n a t e v a l u a t i o n a p p r o a c h e s have r e s u l t e d i n a p r i m a r y r e l i a n c e on i n t e r v i e w and q u e s t i o n n a i r e measures o f v a l u e . The method o f r e v e a l e d p r e f e r e n c e s i s based on the assumption t h a t p e o p l e have t h r o u g h t r i a l and e r r o r a r r i v e d a t a r e p r e s e n t a t i v e e v a l u a t i o n o f t h e i r v a l u e s i n terms o f comparable o r component commodities and a c t i v i t i e s . Both t h e worth o f a good and t h e degree o f u n c e r t a i n t y o r r i s k a s s o c i a t e d w i t h i t s use a r e t h e r e f o r e a s s e s s e d t h r o u g h comparison w i t h o t h e r goods and a c t i v i t i e s whose p e r c e i v e d v a l u e and r i s k s a r e s i m i l a r o r t h r o u g h the summa-t i o n o f t h e i n d i v i d u a l components o f an e x p e r i e n c e . Revealed p r e f e r e n c e t e c h n i q u e s a r e w i d e l y employed t o e s t i m a t e the v a l u e o f non-market goods: examples o f t h e a p p r o a c h i n c l u d e t he Clawson-Knetsch t r a v e l c o s t method f o r p r i c i n g e x t r a - m a r k e t o u t d o o r r e c r e a t i o n e x p e r i e n c e s (Clawson and K n e t s c h , 1966) and numerous h e d o n i c p r i c i n g s t u d i e s o f , f o r example, the r e l a t i o n between a i r q u a l i t y l e v e l s and r e s i d e n t i a l p r o p e r t y v a l u e s o r human h e a l t h (Lave and S e s k i n , 1977). The v a l i d i t y o f r e v e a l e d p r e f e r e n c e t e c h n i q u e s i s dependent on the 7 e q u i v a l e n c e o f compared e x p e r i e n c e s , t he a n a l y s t ' s a b i l i t y t o a c c u r a t e l y ob-s e r v e and r e c o r d t h e i r o c c u r r e n c e i n t h e r e a l w o r l d and the c o m m e n s u r a b i l i t y o f t h e p r i n c i p a l b e n e f i t and r i s k c h a r a c t e r i s t i c s . Where r e g r e s s i o n a n a l y s i s i s employed i t may prove d i f f i c u l t t o s p e c i f y t he r e l e v a n t v a r i a b l e s and t o o b t a i n a c c u r a t e measures o f r e v e a l e d p r e f e r e n c e s w i t h r e s p e c t t o each. The approach may a l s o n o t be r e s p o n s i v e t o u n d r a m a t i c e v e n t s such as i n c r e m e n t a l e n v i r o n m e n t a l d e g r a d a t i o n o r e v o l v i n g s o c i a l and c u l t u r a l a t t i t u d e s . I m p l i e d p r e f e r e n c e methods e v a l u a t e non-market goods i n terms o f the l e g a l and i n s t i t u t i o n a l arrangements which have been d e v e l o p e d t o govern t h e i r use. The ap p r o a c h works b e s t when i n i t i a l d e c i s i o n c r i t e r i a and v a l u a t i o n p r o c e d u r e s have been molded t h r o u g h t i m e on t h e b a s i s o f economic, e c o l o g i c a l and p o l i t i c a l f e e d b a c k i n t o w i d e l y a c c e p t e d and g e n e r a l l y s a t i s f a c t o r y s t a n -d a r d s (Bardach and P u g l i a r e s i , 1977). However, an a n a l y s i s based on i m p l i e d p r e f e r e n c e methods must r e c o g -n i z e t h a t i n f o r m a t i o n r e g a r d i n g c o l l e c t i v e v a l u e s i s l i k e l y t o be ambiguous: c r i t i c i s m o f many i m p l i e d p r e f e r e n c e e v a l u a t i o n s has r e s u l t e d from t he a p p a r e n t l a c k o f c o h e r e n c y o b s e r v e d i n p o l i t i c a l a c t i o n s ( f o r example, a t d i f f e r e n t l e v e l s o f government), l e g a l s t a t u t e s (and t h e i r i n t e r p r e t a t i o n by t h e c o u r t s ) and c o l l e c t i v e e t h i c a l p r i n c i p l e s w i t h r e g a r d t o many q u e s t i o n s o f s o c i a l p r e f e r e n c e . A r e l a t e d problem i s c o n c e r n e d w i t h t h e u n c e r t a i n b e h a v i o r a l r e s p o n s e o f i n d i v i d u a l s and o r g a n i z a t i o n s t o l e g a l and p o l i t i c a l c o n s t r a i n t s , s i n c e f o r m a l r u l e s may be m i s l e a d i n g o r even i g n o r e d and y e t s e r v e t o s t i m u l a t e a c t i o n which i s i n k e e p i n g w i t h an i n d i v i d u a l ' s t r u e v a l u e s . E x p r e s s e d p r e f e r e n c e a p p r o a c h e s r e p r e s e n t a t h i r d a l t e r n a t i v e i n which i n d i v i d u a l s a r e asked t o s t a t e t h e i r p r e f e r e n c e s d i r e c t l y . Well-known v a r i a t i o n s o f the t e c h n i q u e i n c l u d e i n - p e r s o n i n t e r v i e w s and m a i l q u e s t i o n -n a i r e s , b i d d i n g games and p u b l i c p a r t i c i p a t i o n t h r o u g h r e f e r e n d a , h e a r i n g s 3 and p u b l i c m e e t i n g s . I n f o r m a t i o n d e r i v e d from i n t e r v i e w s and q u e s t i o n n a i r e s has been used e x t e n s i v e l y i n r e c e n t y e a r s t o rank e n v i r o n m e n t a l p r e f e r e n c e s on o r d i n a l s c a l e s ( M i l l e r , 1972), t o c a l c u l a t e the economic v a l u e o f r e c r e a -t i o n a l a r e a s ( D a v i s , 1963) and w i l d l i f e management p o l i c i e s ( B i s h o p and H e b e r l e i n , 1979) and t o a n a l y z e the r i s k s and b e n e f i t s a c c r u i n g t o s o c i e t y f r o m d i f f e r e n t a c t i v i t i e s and t e c h n o l o g i e s ( F i s c h h o f f e t a\_., 1976). R e s u l t s o f i t e r a t i v e b i d d i n g t e c h n i q u e s , which ask p a r t i c i p a n t s t o respond a f f i r m a -t i v e l y o r n e g a t i v e l y t o a s e r i e s o f p r o p o s e d p r i c e s , have been used t o e s t i m a t e t h e economic v a l u e o f a n t i c i p a t e d r e d u c t i o n s i n v i s i b i l i t y a s s o c i a t e d w i t h l a r g e r e s o u r c e development p r o j e c t s (Rowe e_t a l _ . , 1980). I n f o r m a t i o n o b t a i n e d d i r e c t l y f r o m p u b l i c p a r t i c i p a t i o n i n d e c i s i o n s r e g a r d i n g p r o j e c t s which promise t o s i g n i f i c a n t l y a l t e r e n v i r o n m e n t a l r e s o u r c e s has i n r e c e n t y e a r s been i n c r e a s i n g l y r e l i e d on by d e c i s i o n makers t o p r o v i d e rough e s t i m -a t e s o f t h e t y p e and s t r e n g t h o f a community's e n v i r o n m e n t a l p r e f e r e n c e s ( B e r g e r , 1977). C e r t a i n a d v a n t a g e s o f the e x p r e s s e d p r e f e r e n c e t e c h n i q u e a r e o b v i o u s : i t f a c i l i t a t e s t h e c o n s i d e r a t i o n o f a wide range o f q u a l i t i e s and i n d i c a t o r s ; i t e l i c i t s c u r r e n t p r e f e r e n c e s and i s h i g h l y r e s p o n s i v e t o changes i n v a l u e s ; i t may a l l o w f o r i n t e r a c t i v e b e h a v i o r and c l a r i f i c a t i o n between i n t e r v i e w e r s and r e s p o n d e n t s . In a d d i t i o n , h y p o t h e t i c a l c o n s i d e r a t i o n s may be e x p l i c i t l y i n c l u d e d as p a r t o f t h e e v a l u a t i o n p r o c e s s . Each o f t h e s e a d v a n t a g e s , how-e v e r , masks a p o t e n t i a l f o r s e r i o u s d i f f i c u l t i e s : t he problem o r i n d i c a t o r s i n q u e s t i o n may be too c o m p l i c a t e d f o r many p e o p l e t o u n d e r s t a n d ; r e s p o n d e n t s may adopt s t r a t e g i c b e h a v i o r s i n o r d e r t o a c h i e v e o r d i s g u i s e u n s t a t e d ob-j e c t i v e s ; and r e s u l t s may f l u c t u a t e w i l d l y o r be i n c o n s i s t e n t w i t h o b s e r v e d b e h a v i o r . While some o f the consequent problems a r e c o n s i d e r e d t o be h i g h l y 9 s u b j e c t i v e , o t h e r s a r e t h o u g h t t o be f a i r l y p r e d i c t a b l e : s t r a t e g i c b e h a v i o r and t h e c o n s c i o u s u n d e r s t a t i n g o f t r u e v a l u e s , f o r example, a r e t h o u g h t t o encourage the c l a s s i c r e s p o n s e o f t h e s o - c a l l e d \" f r e e - r i d e r , \" s i n c e w i t h no one p r e c l u d e d from t h e consumption o f most p u b l i c goods i t i s i n the i n t e r e s t o f each t o a v o i d c o n t r i b u t i n g t o t h e i r p r o d u c t i o n . The presumed i m p l i c a t i o n s o f t h e s e problems have f r e q u e n t l y l e d t o the b l a n k e t d i s m i s s a l o f e x p r e s s e d p r e f e r e n c e v a l u a t i o n s , a t l e a s t s i n c e the p u b l i c a t i o n o f Samuelson's (1954) i n f l u e n t i a l r e m i n d e r . However, t h e d i s c u s s i o n o f l a t e r c h a p t e r s w i l l s t r e s s t h a t doubts r e g a r d i n g t h e a c c u r a c y o f e x p r e s s e d p r e f e r e n c e measures o f v a l u e r e s t on an e m p i r i c a l base which i s s u r p r i s i n g l y s c a n t y and g e n e r a l l y ambigu-ous. CONCEPTUAL MEASURES OF CONSUMER'S SURPLUS Q u e s t i o n s r e l a t i n g t o the d e f i n i t i o n and measurement o f w e l f a r e changes, and t o methods by which measures o f i n d i v i d u a l p r e f e r e n c e s might be a g g r e g a t e d t o p r o v i d e a g u i d e f o r s o c i a l p o l i c i e s , have been d i s c u s s e d by g e n e r a t i o n s o f e c o n o m i s t s i n g r e a t d e t a i l . In t h i s s e c t i o n I b r i e f l y r e v i e w s e v e r a l a p p r o a c h e s t o t h e s e q u e s t i o n s w i t h i n a framework a p p r o p r i a t e t o the u n d e r s t a n d i n g o f w e l f a r e changes which might f o l l o w from the r e v e l a t i o n o f p r e f e r e n c e s f o r non-market goods. Changes i n w e l f a r e a r e g e n e r a l l y measured i n terms o f money o r w e a l t h , and t h e r e f o r e r e f e r t o changes i n t h e a r e a under an i n d i v i d u a l ' s demand c u r v e . T h i s a r e a i s composed o f two p a r t s , one m e a s u r i n g the amount which must a c t u a l l y be p a i d f o r a good o r a c t i v i t y and a n o t h e r t h e a d d i t i o n a l (maximum) amount an i n d i v i d u a l would be w i l l i n g t o pay. T h i s \"consumer's s u r p l u s \" was f i r s t r e f e r r e d t o by D u p u i t i n 1844, w i t h the n o t i o n l a t e r p o p u l a r i z e d (and e x p r e s s e d i n terms o f an i n d i v i d u a l ' s u t i l i t y ) by M a r s h a l l , 10 -Changes i n demand can i n t u r n r e s u l t f r o m changes i n p r e f e r e n c e s , changes i n money income (which d i r e c t l y t r a n s l a t e s i n t o w e l f a r e changes) o r changes i n p r i c e s . I t i s w i t h r e s p e c t t o p r i c e s h i f t s t h a t measurement p r o b -lems a r e most f r e q u e n t l y t h o u g h t t o a r i s e , p a r t i c u l a r l y s i n c e t h e contem-p l a t e d changes may be v e r y l a r g e . In t h e extreme c a s e , p r i c e s may i n f a c t change from z e r o (when an a c t i v i t y o r good i s p u b l i c l y p r o v i d e d a t no c o s t ) to i n f i n i t y (when the good i s no l o n g e r a v a i l a b l e ) . I f demand c u r v e s f o r a l l goods were u n i q u e l y d e f i n e d \u00E2\u0080\u0094 o r a l t e r n a t i v e l y , i f t h e p r e f e r e n c e f u n c t i o n o f an i n d i v i d u a l r e f l e c t e d o n l y goods bought and s o l d i n c o n v e n t i o n a l p r i v a t e m a r k e t s \u00E2\u0080\u0094 t h e d e s c r i p t i o n o f consumer's s u r p l u s measures a s s o c i a t e d w i t h changes i n p r i c e s would be r e l a t i v e l y s t r a i g h t f o r w a r d . U n f o r t u n a t e l y t h i s i s n o t t h e c a s e , and f i v e p o t e n t i a l measures o f w e l f a r e change must be c o n s i -d e r e d ( P e a r c e , 1976). The f i r s t i s t h e change i n o r d i n a r y consumer's s u r p l u s , which i s measured by t h e a r e a above t h e ( h o r i z o n t a l ) p r i c e l i n e but below the (Mar-s h a l l i a n o r d i n a r y ) demand c u r v e . The o t h e r f o u r measures, as d e l i n e a t e d by H i c k s ( 1 9 3 9 ) , can be d e f i n e d w i t h r e s p e c t t o whether payment ( o r r e c e p t i o n ) o f t h e a s s o c i a t e d monetary sums w i l l l e a v e the consumer i n h i s o r h e r i n i t i a l o r f i n a l w e l f a r e p o s i t i o n . These a l t e r n a t i v e s a r e shown i n F i g u r e s 2 and 3, i n terms o f t h e demand and i n d i f f e r e n c e c u r v e s f o r some commodity X^. F o l l o w i n g a p e r - u n i t p r i c e d e c r e a s e , the consumer's budget l i n e ( F i g u r e 2) s h i f t s o u t from t o B^ and market e q u i l i b r i u m s h i f t s from p o i n t X t o p o i n t Y on a h i g h e r i n d i f f e r e n c e c u r v e . In o r d e r t o measure the a s s o c -i a t e d w e l f a r e g a i n , we can imagine t h a t i f . t h e consumer were now t a x e d an amount equal t o CV t h e i n i t i a l l e v e l o f w e l f a r e c o u l d s t i l l be a c h i e v e d a t p o i n t W. However, t h i s would i m p l y a d i f f e r e n t c o m b i n a t i o n o f p u r c h a s e s t h a n a t X. I f t h e consumer were i n s t e a d c o n s t r a i n e d t o buy'the amount o f good X., 11 Wealth o r Income ($) F i g u r e 2 Consumer's S u r p l u s Measures:' P r i c e Change Wealth o r Income ($) ~ \" ' V a, what h i s o r h e r t r u e v a l u e s r e a l l y a r e , o r t h e y may r e p r e s e n t s h o r t - t e r m g o a l s which c o n f l i c t w i t h l o n g e r - t e r m ob-j e c t i v e s . Perhaps o n l y the most s i m p l e minded o r the most s o p h i s t i c a t e d o f s u b j e c t s would be s u f f i c i e n t l y c o n f i d e n t o f t h e i r s e l f - k n o w l e d g e t o c o n s i d e r any s i n g l e h o n e s t s t a t e m e n t o f v a l u e as r e p r e s e n t i n g a comprehensive e x p r e s -s i o n o f t h e i r p r e f e r e n c e s . C o g n i t i v e B i a s e s C o g n i t i v e b i a s e s a r e u n i n t e n t i o n a l d i s t o r t i o n s o f t r u e p r e f e r e n c e s which r e s u l t f r o m l i m i t a t i o n s i n an i n d i v i d u a l ' s a b i l i t y t o p e r c e i v e , p r o c e s s , and e v a l u a t e u n c e r t a i n o r u n f a m i l i a r i n f o r m a t i o n . These l i m i t a t i o n s t e n d t o be p e r v a s i v e ( t h a t i s , s h a r e d by both l a y p e r s o n s and e x p e r t s ) , r e s i s t a n t t o change ( t h a t i s , do not d i s a p p e a r when known) and s y s t e m a t i c ( r a t h e r t h a n random). The i n f l u e n c e o f c o g n i t i v e b i a s e s i s more e x t e n s i v e when r e q u i s i t e e v a l u a t i o n t a s k s a r e complex and r e q u i r e h i g h l y s p e c i a l i z e d i n t e l l e c t u a l and p e r c e p t u a l equipment. These c h a r a c t e r i s t i c s g e n e r a l l y e x i s t i n the e v a l u a -t i o n o f e n v i r o n m e n t a l goods and a c t i v i t i e s , s i n c e both the i d e n t i f i c a t i o n and 63 v a l u a t i o n o f p r e f e r e n c e s w i l l i n most c a s e s i n v o l v e r e f e r e n c e t o u n c e r t a i n c o n d i t i o n s o r e v e n t s , t h e a s s e s s m e n t o f i n f o r m a t i o n o f l i m i t e d v a l i d i t y and t h e w e i g h i n g o f competing o r incommensurate f a c t o r s . E a r l y models o f p r e f e r e n c e f o r m a t i o n tended t o view p e o p l e as v e r i d i -c a l o b s e r v e r s and competent i n t u i t i v e s t a t i s t i c i a n s who c o u l d s u c c e s s f u l l y s e l e c t and e v a l u a t e i n f o r m a t i o n o b t a i n e d from t h e i r e n v i r o n m e n t t o form r e p r e -s e n t a t i v e c h o i c e s ( P e t e r s e n and Beach, 1967). In r e c e n t y e a r s , however, t h i s p i c t u r e has been s u b j e c t e d t o i n c r e a s i n g c r i t i c i s m : n o r m a t i v e l y a p p r o p r i a t e d e c i s i o n s t r a t e g i e s , i t a p p e a r s , may be u n d e r u t i l i z e d and as a r e s u l t man's i n f e r e n t i a l c a p a b i l i t i e s may prove i n a d e q u a t e f o r some o f the c o g n i t i v e t a s k s a t hand ( N i s b e t t and Ross, 1980). In p a r t i c u l a r , i t a p p e a r s t h a t we seek t o r e d u c e t h e c o m p l e x i t y o f t h e t a s k s i n v o l v e d i n a s s e s s i n g p r o b a b i l i t i e s and e s t a b l i s h i n g v a l u e s by r e l y i n g i n s t e a d on a number o f more p r i m i t i v e j u d g e -mental h e u r i s t i c s . As s t r e s s e d i n the i n f l u e n t i a l s t u d i e s o f T v e r s k y and Kahneman (1974; 1981), t h e employment o f h e u r i s t i c p r i n c i p l e s i s g e n e r a l l y e f f i c i e n t , o f t e n u s e f u l , and f r e q u e n t l y n e c e s s a r y , but a t the same time can be r e s p o n s i b l e f o r t h e i n t r o d u c t i o n o f s i g n i f i c a n t and s y s t e m a t i c b i a s . F i v e major p o t e n t i a l s o u r c e s o f c o g n i t i v e b i a s , which r e l a t e t o the l i m i t e d a b i l i t y o f an i n d i v i d u a l t o a c c u r a t e l y p r o c e s s u n f a m i l i a r o r u n c e r t a i n i n f o r m a t i o n and employ i t t o i n f o r m h i m s e l f and o t h e r s o f h i s t r u e p r e f e r -e n c e s , w i l l be n o t e d i n t h i s s e c t i o n . R e p r e s e n t a t i v e b i a s . In making d e c i s i o n s o f c a u s a t i o n ( w i l l A g e n e r a t e B?) o r r e l a t i o n ( i s A p a r t o f B ? ) , Kahneman and T v e r s k y (1974) have h y p o t h e s i z e d t h a t i n d i v i d u a l s t e n d t o examine e s s e n t i a l f e a t u r e s o f A and B and e v a l u a t e t h e d e g r e e o f s i m i l a r i t y between them. I f B i s r e p r e s e n t a t i v e o f A, i t s p r o b a b i l i t y o f o c c u r r e n c e i s t h e n j u d g e d t o be h i g h . The r e p r e s e n t a t i v e n e s s b i a s t e n d s t o v i o l a t e p r i n c i p l e s o f r a t i o n a l i t y i n t h a t i t e n c o u r a g e s (a) t h e n e g l e c t o f p r i o r p r o b a b i l i t i e s ( i n c o n t r a s t t o the d e s c r i p t i o n g i v e n by 64 Bayes 1 r u l e ) ; (b) an i n s e n s i t i v i t y t o sample s i z e and ( c ) o v e r - c o n f i d e n c e i n t h e g e n e r a l a p p l i c a b i l i t y o f r e s u l t s from s m a l l samples; (d) an e x c e s s o f t r u s t i n p r e d i c t i o n s based on r e d u n d a n t , o r n o n - i n d e p e n d e n t , i n p u t v a r i a b l e s ( t h a t i s , e x h i b i t i n g m u l t i - c o l l i n e a r i t y ) ; and (e) an i n s e n s i t i v i t y toward the o c c u r r e n c e o f r e g r e s s i v e b e h a v i o r (so t h a t p r e d i c t i o n s f a i l t o r e f l e c t a p r o p e r c o n s i d e r a t i o n f o r mean v a l u e s ) . R e p r e s e n t a t i v e b i a s e s i n c o r p o r a t e both t h e well-known gambler's f a l l a c y ( \" i f i t happened l a s t t ime i t s h o u l d n ' t happen next t i m e \" ) and t h e d r a m a t i c a l l y t i t l e d \"fundamental a t t r i b u t i o n e r r o r \" (by which the r o l e o f p e r s o n a l d i s p o s i t i o n s i s o v e r - w e i g h t e d r e l a t i v e t o s i t u a t i o n a l i n f l u e n c e s ) and r a i s e s u b s t a n t i v e q u e s t i o n s about o u r a b i l i t y t o f u n c t i o n as v e r i d i c a l o b s e r v e r s o r r a t i o n a l e v a l u a t o r s o f s u r p r i s e o r chance e v e n t s . A v a i l a b i l i t y b i a s . S t a t i s t i c a l n o t i o n s o f f r e q u e n c y and p r o b a b i l i t y a r e r e -f l e c t e d i n t h e ease w i t h which e v e n t s can be r e c a l l e d , but so t o o a r e a number o f more s u b t l e s u b j e c t i v e f a c t o r s such as r e c e n c y , f a m i l i a r i t y , imag-i n a b i l i t y , and s a l i e n c e . These f a c t o r s , which t e n d t o v a r y s i g n i f i c a n t l y among i n d i v i d u a l s , can be s u b j e c t e d t o e i t h e r u n c o n s c i o u s o r i n t e n t i o n a l m a n i p u l a t i o n by the media (which tends t o emphasize c e r t a i n c l a s s e s o f e v e n t s ) o r t h e s p e c i f i c w o r d i n g o f a s u r v e y q u e s t i o n . The n o t i o n o f a v a i l a b i l i t y has been w i d e l y a p p l i e d i n the a n a l y s i s o f d i s t o r t i o n s which o c c u r i n the p e r c e p t i o n o f n a t u r a l h a z a r d s ( K a t e s , 1977), where i n d i v i d u a l s t e n d t o r e l y h e a v i l y on e x p e r i e n c e and t o view t h e f u t u r e as a f a i t h f u l m i r r o r o f the p e r -c e i v e d p a s t . A n c h o r i n g b i a s . A d j u s t m e n t s from an i n i t i a l v a l u e t e n d t o be both i m p r e c i s e and i n s u f f i c i e n t ; as a r e s u l t , s u b s e q u e n t p e r c e p t i o n s and v a l u a t i o n s t e n d t o be s t r o n g l y i n f l u e n c e d by, o r a n c h o r e d i n , f i r s t i m p r e s s i o n s . The e x i s t e n c e 65 o f t h i s b i a s t e n d s t o (a) encourage t h e f o r m a t i o n o f o v e r l y narrow c o n f i d e n c e i n t e r v a l s and l e a d s t o e x c e s s o p t i m i s m i n (b) e s t i m a t i n g the p r o b a b i l i t y o f what a r e p e r c e i v e d as c o n j u n c t i v e events, ( f o r example, t h e s u c c e s s f u l comple-t i o n o f a m i t i g a t i o n p r o j e c t ) o r ( c ) u n d e r s t a n d i n g the l i k e l i h o o d o f d i s j u n c -t i v e e v e n t s ( f o r example, the c u m u l a t i v e p r o b a b i l i t y o f f a i l u r e f o r a complex enhancement p l a n ) . The u n i n t e n t i o n a l a s p e c t o f t h i s b i a s means t h a t we may m i s r e p r e s e n t o u r t r u e p r e f e r e n c e s even though we have made a s i n c e r e a t t e m p t t o overcome t h e a n t i c i p a t e d i n f l u e n c e o f a p a r t i c u l a r s t a r t i n g p o i n t o r i n i t i a l a s s u m p t i o n : both o u r s e l v e s and o u r p l a n s , the b i a s s u g g e s t s , may be l e s s a d a p t i v e than we hope. O v e r c o n f i d e n c e b i a s . In a s e n s e , each form o f c o g n i t i v e b i a s p r e s e n t s a p o t e n t i a l s o u r c e o f o v e r c o n f i d e n c e r e g a r d i n g o u r a b i l i t y t o p e r c e i v e and e v a l u a t e i n f o r m a t i o n . However, f o u r s o u r c e s o f o v e r c o n f i d e n c e m e r i t s p e c i a l a t t e n t i o n i n t h e c o n t e x t o f e x p r e s s e d p r e f e r e n c e measures o f v a l u e . The f i r s t a r i s e s i n t h e e v a l u a t i o n o f u n f a m i l i a r o r l a b i l e v a l u e s , where an i n d i v i d u a l may f e e l c o m p e l l e d t o q u i c k l y r e s p o n d t o an i n t e r v i e w e r ' s q u e s t i o n ( r a t h e r t h a n admit h i s i g n o r a n c e o f t h e s u b j e c t o r h i s g e n u i n e l a c k o f a w e l l - d e f i n e d a t t i t u d e ) and t h e r e a f t e r remains committed t o m a i n t a i n i n g t h a t p o s i t i o n , even though t h i s i n v o l v e s t h e s u p p r e s s i o n o f o t h e r i n c o n s i s t e n t o r competing views. A r e l a t e d a s p e c t o f o v e r c o n f i d e n c e b i a s e s l e a d s t o the o u t s p o k e n d e n i a l o f u n c e r t a i n t y (\"earthquakes don't happen he r e \" ) so t h a t an u n c e r t a i n o r u n f a m i l -i a r a c t i v i t y may come to be viewed as p e r f e c t l y known and s a f e . A t h i r d s o u r c e i n v o l v e s t h e u n d e r w e i g h t i n g o f outcomes t h a t a r e p r o b a b l e i n c o m p a r i -son w i t h t h o s e o b t a i n e d w i t h c e r t a i n t y . T h i s t e n d e n c y , termed t h e \" c e r t a i n t y e f f e c t , \" i s f a m i l i a r from t h e p r e v i o u s d i s c u s s i o n o f p r o s p e c t t h e o r y where i t was shown t o c o n t r i b u t e t o both the well-known b e h a v i o r o f r i s k a v e r s i o n i n c h o i c e s which i n v o l v e c e r t a i n g a i n s and t h e s u r p r i s i n g but p a r a l l e l p r e s e n c e 66 o f r i s k s e e k i n g i n c h o i c e s i n v o l v i n g c e r t a i n l o s s e s . F i n a l l y , F i s c h h o f f (1977) and o t h e r s have found t h a t , once t o l d t h a t an e v e n t has o c c u r r e d , i n d i v i d u a l s t e n d t o b e l i e v e ( w i t h o u t r e a l i z i n g i t ) t h a t t h e y \"knew i t would o c c u r \" a l l a l o n g . Not o n l y can h i n d s i g h t b i a s e s a f f e c t the e v a l u a t i o n o f d e c i s i o n s which have been made i n t h e p a s t by e m p h a s i z i n g a sense o f \" c o g n i -t i v e c o n c e i t \" (Dawes, 1976) but t h e y may encourage an unwarranted sense o f o p t i m i s m c o n c e r n i n g p r e d i c t i v e and f o r e c a s t i n g a b i l i t i e s . Such o v e r c o n f i d e n c e can o f c o u r s e o n l y be m a i n t a i n e d i f (a) e n v i r o n m e n t a l f e e d b a c k i s n o t s t r u c -t u r e d so as t o d e m o n s t r a t e , o r p u n i s h us f o r , e r r o r s (which i n p a r t e x p l a i n s why weather f o r e c a s t e r s a r e g e n e r a l l y f a i r l y a c c u r a t e ) , o r (b) we a r e a b l e t o n e u t r a l i z e o r o t h e r w i s e i g n o r e incoming i n f o r m a t i o n ( f o r example, t h r o u g h employment o f the h i n d s i g h t b i a s ) . C o n t e x t u a l b i a s . A number o f c o g n i t i v e b i a s e s combine t o emphasize the s i g n i f i c a n c e o f c o n t e x t i n the p e r c e p t i o n and e v a l u a t i o n o f non-market goods. The s e q u e n t i a l a n a l y s i s o f a l t e r n a t i v e s , f o r example, has been found t o r e s u l t i n a v a l u a t i o n d i f f e r e n t from t h e i r s i m u l t a n e o u s p r e s e n t a t i o n ( T v e r s k y , 1969). S i m i l a r l y , an i n d i v i d u a l ' s w i l l i n g n e s s t o t a k e on r i s k s a p p e a r s t o be h i g h e r when a p r o s p e c t i s viewed as b e l o n g i n g t o a c l a s s o f problems r a t h e r than as an i s o l a t e d o r u n i q u e e v e n t . In a more g e n e r a l s e n s e , d e c i s i o n s may d i f f e r d r a m a t i c a l l y i f a problem i s viewed as one r e q u i r i n g a judgement (on i n d i v i d -u a l o p t i o n s ) o r a c h o i c e ( s e l e c t i n g from two o r more o p t i o n s ) ( S l o v i c e t a l . , 1981). These c o n s i d e r a t i o n s s u g g e s t t h a t so o b v i o u s a f a c t o r as the o r d e r i n which i n f o r m a t i o n i s p r e s e n t e d may s i g n i f i c a n t l y a f f e c t the e s t i m a t i o n o f p r e f e r e n c e s . The common p r a c t i c e o f o v e r l o a d i n g a d e c i s i o n maker w i t h e x t r a n e -ous i n f o r m a t i o n may s i m i l a r l y s e r v e o n l y t o e n s u r e c o n f u s i o n and a c o n s e q u e n t l y i n a c c u r a t e v a l u a t i o n o f p r e f e r e n c e s . A second s o u r c e o f c o n t e x t u a l b i a s a r i s e s f r o m the u n c o n s c i o u s t e n -67 dency o f i n d i v i d u a l s t o s i m p l i f y c h o i c e s among a l t e r n a t i v e s by d i s r e g a r d i n g s h a r e d t r a i t s and f o c u s s i n g i n s t e a d on d i s t i n g u i s h i n g c h a r a c t e r i s t i c s . T h i s phenomena, which Kahneman and T v e r s k y (1974) have termed the \" i s o l a t i o n e f f e c t , \" can l e a d t o i n c o n s i s t e n t p r e f e r e n c e s when d i f f e r e n t a s p e c t s o f a c h o i c e a r e emphasized; f o r example, t h e same i s s u e may be viewed i n a sub-s t a n t i a l l y d i f f e r e n t l i g h t by a government b u r e a u c r a c y which sees the problem as one o f many and t h e l o c a l c i t i z e n r y which view the c i r c u m s t a n c e s as u n i q u e . T h i s a s p e c t o f c o n t e x t u a l b i a s i s r e l a t e d t o a s o r t o f Gresham's Law o f i n f o r m a t i o n , by which v a l u e s which a r e b e t t e r known o r measured i n terms o f e a s i l y commensurate i n d i c a t o r s ( f o r example, d o l l a r s ) a r e g r a n t e d p r e f e r e n t i a l t r e a t m e n t o v e r \" s o f t e r \" o r l e s s f a m i l i a r v a l u e s . A t h i r d f o r m o f c o n t e x t u a l b i a s s u g g e s t s t h a t an i n d i v i d u a l may s t a t e a p r e f e r e n c e f o r one a c t i v i t y ( f o r example, a good gamble) but v a l u e a n o t h e r more h i g h l y ( f o r example, one which has a l a r g e w i n n i n g p a y o f f ) , as i f d i f f e r e n t ( i n c o m p a t i b l e ) c o g n i t i v e s t r a t e -g i e s were used f o r t h e two a c t i v i t i e s o f s e t t i n g p r i c e s and making c h o i c e s ( L i c h t e n s t e i n and S l o v i c , 1971). D e b i a s i n g S t r a t e g i e s The s i g n i f i c a n c e o f m o t i v a t i o n a l and c o g n i t i v e b i a s e s i n the measure-ment o f e x p r e s s e d v a l u e s remains a m a t t e r o f some d e b a t e . On the one hand, a number o f p s y c h o l o g i s t s and d e c i s i o n a n a l y s t s have s t r o n g l y emphasized the r o l e o f n o n - m o t i v a t i o n a l s o u r c e s o f e r r o r i n judgemental t a s k s . N i s b e t t and Ross (1980:12), f o r example, warn t h e r e a d e r o f t h e i r r e c e n t t e x t t h a t \"We p r o c e e d from t h e w o r k i n g h y p o t h e s i s t h a t i n f e r e n t i a l and judgemental e r r o r s a r i s e p r i m a r i l y f r o m n o n - m o t i v a t i o n a l - - p e r c e p t u a l and c o g n i t i v e \u00E2\u0080\u0094 s o u r c e s . Such e r r o r s , we c o n t e n d , a r e a l m o s t i n e v i t a b l e p r o d u c t s o f human i n f o r m a t i o n -p r o c e s s i n g s t r a t e g i e s . \" O t h e r s , such as S l o v i c , F i s c h h o f f and L i c h t e n s t e i n , s t r e s s \" . . . t h e s t r o n g e f f e c t s o f f r a m i n g and i n f o r m a t i o n - p r o c e s s i n g c o n s i d e r a -68 t i o n s \" and argue t h a t i n many c a s e s \"the method becomes the message.\" ( S l o v i c e t a l _ . , f o r t h c o m i n g ) . In t h e economics 1 i t e r a t u r e - - f o r example, as p a r t o f the e x t e n s i v e a e s t h e t i c v a l u a t i o n s t u d i e s o f Rowe, d'Arge and B r o o k s h i r e ( 1 9 8 0 ) - - d i s c u s s i o n s o f b i a s have emphasized m o t i v a t i o n a l r a t h e r than c o g n i t i v e i n f l u e n c e s and g e n e r a l l y f a i l t o d i s t i n g u i s h between t he two s o u r c e s . F o l l o w i n g n o r m a t i v e p r e s c r i p t i o n s , d e b i a s i n g p r o c e d u r e s a r e g e n e r a l l y based on the assumption o f a r a t i o n a l r e s p o n d e n t who seeks t o maximize a c l e a r l y d e f i n e d p e r s o n a l u t i l i t y f u n c t i o n by em p l o y i n g m o d e r a t e l y complex s t a t i s t i c a l r e a s o n i n g . F u r -t h e r m o r e , t h i s i n d i v i d u a l i s assumed t o be e d u c a b l e and hence r e s p o n s i v e t o c o r r e c t i v e i n f o r m a t i o n which i s g i v e n c o n c e r n i n g p o t e n t i a l : s o u r c e s . o f b i a s . A comparison o f b e f o r e and a f t e r r e s p o n s e s s h o u l d t h e r e f o r e , t h e y r e a s o n , s e r v e t o i d e n t i f y t h e magnitude o f b i a s e s which a r e p r e s e n t . T h i s c o n c e p t i o n o f p r e f e r e n c e f o r m a t i o n and r e v e l a t i o n i s s u b s t a n -t i a l l y d i f f e r e n t from one which r e c o g n i z e s both m o t i v a t i o n a l and c o g n i t i v e , s o u r c e s o f b i a s and which views d e v i a t i o n s from r a t i o n a l o r - s t a t i s t i c a l l y a p p r o p r i a t e judgements as b e i n g s y s t e m a t i c ( r a t h e r than m e r e l y c o n f u s e d ) and w i d e s p r e a d ( r a t h e r than t h e p r o d u c t o f i n d i v i d u a l c a r e l e s s n e s s ) , sometimes u s e f u l and a p p r o p r i a t e ( r a t h e r than n e c e s s a r i l y \"wrong\") and h i g h l y r e s i s t a n t t o change ( o r r e - e d u c a t i o n ) . Nor i s i t s u r p r i s i n g t h a t approaches which acknowledge t he i n f l u e n c e o f both s o u r c e s o f b i a s y i e l d s u b s t a n t i a l l y d i f -f e r e n t c o r r e c t i v e p r e s c r i p t i o n s which g e n e r a l l y \"attempt t o r e t a i n what i s most v a l i d i n the i n t u i t i v e p r o c e s s w h i l e c o r r e c t i n g some e r r o r s t o which i t i s p r o n e . \" (Kahneman and T v e r s k y , 1979b:314). In p a r t i c u l a r , t h e s u r v e y i n s t r u m e n t s s u g g e s t e d by such s t u d i e s ' r e f l e c t an i n c r e a s e d emphasis on t h e - i d e n t i f i c a t i o n o f s i t u a t i o n s where a n t i -i n t u i t i v e s t a t i s t i c a l t h i n k i n g would be h e l p f u l s i n c e t h e usu a l d e c i s i o n s o f 6 9 a normal i n d i v i d u a l may p r o ve t o be m i s l e a d i n g . F i s c h h o f f ( f o r t h c o m i n g ) , f o r example, c a t e g o r i z e s d e b i a s i n g p r o c e d u r e s a c c o r d i n g t o whether the sub-j e c t , t h e t a s k , o r t h e r e l a t i o n between them i s t o be h e l d r e s p o n s i b l e f o r t h e j udgemental e r r o r s under c o n s i d e r a t i o n . W hile t r a d i t i o n a l s u r v e y methods e n v i s a g e n e u t r a l i n t e r v i e w e r s who m i n i m i z e t h e i r i n t e r a c t i o n s w i t h r e p r e s e n -t a t i v e r e s p o n d e n t s , a r e c o g n i t i o n o f c o g n i t i v e and m o t i v a t i o n a l b i a s e s s u g g e s t s t h a t p r e f e r r e d e L i c i t a t i o n methods can p o i n t o u t i m p l i c a t i o n s o f r e s p o n s e s , d i s c u s s how the r e s u l t s o b t a i n e d r e l a t e t o t h o s e o f s i m i l a r s t u d i e s o r r e f e r e n c e g r o u p s , and o f f e r a l t e r n a t i v e p e r s p e c t i v e s f o r v i e w i n g the p r o b -lem ( F i s c h h o f f e t a l _ . , 1980). I n c r e a s e d a t t e n t i o n s h o u l d a l s o be p a i d t o t h e s p e c i f i c w o r d i n g and t i m i n g o f q u e s t i o n s , t h e o r d e r and manner i n which q u e s t i o n s a r e p r e s e n t e d , and t h e c o g n i t i v e c a p a b i l i t i e s i m p l i c i t l y assumed o f r e s p o n d e n t s by s u r v e y p r o c e d u r e s . A more g e n e r a l p o i n t i s t h a t s t u d i e s o f b i a s need t o p r o c e e d i n p a r a l l e l w i t h an a n a l y s i s o f t h e i r r o b u s t n e s s and s i g n i f i c a n c e ( t o a v o i d the l a b e l o f c o n t r i v e d e x p e r i m e n t a t i o n ) and s h o u l d h e l p p o i n t t h e way t o p o s s i b l e d e b i a s i n g i n i t i a t i v e s . F i s c h h o f f ' s ( f o r t h c o m i n g ) c l e v e r a s s e r t i o n t h a t \"the s t u d y o f b i a s e s c l a r i f i e s t h e s o u r c e s and l i m i t s o f a p p a r e n t wisdom, j u s t as t h e s t u d y o f d e b i a s i n g c l a r i f i e s t h e s o u r c e s and l i m i t s o f a p p a r e n t f o l l y \" s e r v e s t o emphasize t h a t t h e development o f an e f f e c t i v e d e b i a s i n g e f f o r t r e q u i r e s i n s i g h t s from both d i r e c t i o n s . I t i s hoped t h a t the e x p e r i m e n t a t i o n and s u b s e q u e n t a n a l y s i s o f the p r e s e n t s t u d y w i l l p r o v e f a i t h f u l t o t h i s r e m i n d e r . 70 CHARTER V RESEARCH DESIGN AND SURVEY PROCEDURES T h i s c h a p t e r o u t l i n e s t h e key problem a r e a s f o r which e m p i r i c a l d a t a has been o b t a i n e d , p r e s e n t s t h e d e s i g n o f t h e e x p e r i m e n t a l t e s t s and b r i e f l y r e v i e w s t h e i m p l e m e n t a t i o n p r o c e d u r e s which were employed. Each o f t h e s e t h r e e s u b j e c t s w i l l be c o n s i d e r e d i n t u r n . SELECTED PROBLEM AREAS The d i s c u s s i o n o f the p r e c e d i n g c h a p t e r s has attempted t o c r i t i c a l l y r e v i e w some o f t h e major c o n s i d e r a t i o n s which a r i s e when e s t i m a t i n g t he v a l u e o f non-market goods on the b a s i s o f i n d i v i d u a l s ' e x p r e s s e d p r e f e r e n c e s . The m a j o r i t y o f t h e s e c o n c e r n s owe t h e i r c o n t i n u e d e x i s t e n c e t o t h e r e l a t i v e l y s m a l l base o f c a r e f u l e m p i r i c a l s t u d i e s which have been c o n d u c t e d : as a r e s u l t , a v a i l a b l e i n f o r m a t i o n i s i n many c a s e s s c a n t y , i n a p p r o p r i a t e , o r c o n t r a d i c t o r y , and l e a v e s t h e a n a l y s t l i t t l e c l o s e r t o t h e knowledge o f an a c c u r a t e method f o r e s t i m a t i n g non-market v a l u e s . I have s e l e c t e d s i x problem a r e a s t o s e r v e as the f o c u s o f my e m p i r i c a l r e s e a r c h . I t has n o t proved \" p o s s i b l e t o group t h e s e c o n c e r n s on t h e b a s i s o f any t i d y d i f f e r e n t i a t i o n : each problem i n v o l v e s both c o n c e p t u a l and m e t h o d o l o g i c a l c o n s i d e r a t i o n s and no c o n c e r n can be viewed i n i s o l a t i o n . I n s t e a d , each o f the s e l e c t e d t o p i c s r e f l e c t s a d e c i s i o n which must be made i n t h e c o u r s e o f d e s i g n i n g a s u r v e y o f non-market v a l u e s and i n t e r p r e t i n g t h e r e s p o n s e s which a r e o b t a i n e d . In each c a s e , t h e q u e s t i o n s which i n t e r e s t me a r e ones o f d i f f e r e n c e and d e g r e e : f o r example, i s the c h o i c e between 71 p u r c h a s e and c o m p e n s a t i o n measures o f v a l u e , d i f f e r e n t s t a r t i n g p o i n t s o r d i f f e r e n t q u e s t i o n wordings l i k e l y t o s i g n i f i c a n t l y a f f e c t t he magnitude o f s u r v e y r e s u l t s , and i f so what a r e the i m p l i c a t i o n s f o r s u r v e y d e s i g n ? In no c a s e was s u f f i c i e n t e v i d e n c e o b t a i n e d t o s u p p o r t t h e e x i s t e n c e o f one r i g h t a p p r o a c h , but such a q u e s t i s w e l l beyond t h e p r e s e n t s t a t e o f t h e a r t . S i n c e t h e e x i s t i n g l i t e r a t u r e on each t o p i c i s i n c o n c l u s i v e , what appear s t o be most needed i s a d d i t i o n a l e x p e r i m e n t a l d a t a on s p e c i f i c c on-c e p t u a l and t e c h n i c a l c o n c e r n s r a t h e r t h a n f i n a l judgements o r c o n c l u s i v e t h e o r i e s . In many r e s p e c t s , t h e methodology used i n t h e v a l u a t i o n o f non-market goods i s s t i l l s e a r c h i n g n o t f o r answers but f o r a p p r o p r i a t e q u e s t i o n s . F o r each o f t h e f o l l o w i n g s i x problem a r e a s I am t h e r e f o r e p r i m a r i l y i n t e r e s t e d i n o b t a i n i n g a d d i t i o n a l e m p i r i c a l e v i d e n c e r e g a r d i n g the i m p o r t a n c e o f each c o n c e r n i n the d e s i g n o f n o n - m a r k e t - s u r v e y s . D i f f e r e n c e s i n Payment and Compensation Measures o f V a l u e A fundamental c h o i c e must be made between t h e competing measures o f v a l u e r e p r e s e n t e d by an i n d i v i d u a l ' s w i l l i n g n e s s t o pay t o r e t a i n o r o b t a i n a good o r t o e n j o y an e x p e r i e n c e and h i s o r h e r w i l l i n g n e s s t o a c c e p t compen-s a t i o n t o r e l i n q u i s h o r f o r e g o t h e same good o r a c t i v i t y . While e c o n o m i s t s have t r a d i t i o n a l l y a r g u e d t h a t d i f f e r e n c e s i n the a p p r o a c h e s w i l l be i n s i g -n i f i c a n t , r e c e n t e m p i r i c a l e v i d e n c e s u g g e s t s t h a t under c e r t a i n c o n d i t i o n s t h e v a r i a t i o n s may be s u b s t a n t i a l . C e n t r a l t o t h i s s t u d y i s t h e c a s e o f non-market e n v i r o n m e n t a l goods, f o r which I i n v e s t i g a t e t h e magnitude o f o b s e r v e d d i f f e r e n c e s i n consumer's s u r p l u s based on payment and compensation measures o f ..expressed v a l u e s . Comparison o f A l t e r n a t i v e H y p o t h e t i c a l Measures T h r e e major s u r v e y a p p r o a c h e s have been used t o e s t i m a t e the v a l u e o f 72 non-market goods. The c l o s e d - e n d e d o r a l l - o r - n o n e a p p roach asks p a r t i c i p a n t s t o r e s p o n d a f f i r m a t i v e l y o r n e g a t i v e l y t o a s p e c i f i e d monetary payment w i t h t h e l e v e l v a r i e d a c r o s s i n d i v i d u a l s . The open-ended a p p r o a c h asks r e s p o n d e n t s t o s t a t e t h e maximum (minimum) amount t h e y a r e w i l l i n g t o pay ( w i l l i n g t o a c c e p t ) t o p u r c h a s e o r r e t a i n ( f o r e g o ) a good o r a c t i v i t y . The b i d d i n g game o r a u c t i o n a p p r o a c h p r o c e e d s i n s u c c e s s i v e i n c r e m e n t s u n t i l a maximum bu y i n g o r minimum s e l l i n g p r i c e i s a s c e r t a i n e d . A l t h o u g h each o f t h e t h r e e measures has been employed t o e s t i m a t e t h e v a l u e o f non-market goods, no s y s t e m a t i c c o m p a r i s o n has y e t been made. I a t t e m p t t o do t h i s f o r both t he w i l l i n g n e s s t o pay and t h e comp e n s a t i o n demanded a l t e r n a t i v e s . Comparison o f H y p o t h e t i c a l and A c t u a l Responses Both e c o n o m i s t s and p s y c h o l o g i s t s have advanced t h e argument t h a t h y p o t h e t i c a l measures o f p r e f e r e n c e w i l l bear l i t t l e resemblance t o a c t u a l consumer b e h a v i o r . I f t h i s i s t r u e , t h e r e s u l t s o f a c o n t i n g e n t v a l u a t i o n s u r v e y would f u r n i s h an u n r e l i a b l e base f o r t h e e s t a b l i s h m e n t o f p u b l i c p o l i c y . In t h e s e t e s t s I compare a c t u a l and h y p t h e t i c a l r e s p o n s e s t o b i d d i n g game and c l o s e d - e n d e d f o r m a t s o f both t h e payment and comp e n s a t i o n v a l u a t i o n a l t e r n a t i v e s . I n f l u e n c e o f Framing E f f e c t s Common sense s u g g e s t s t h a t changes i n t h e way i n which v a l u a t i o n q u e s t i o n s a r e asked may a l t e r an i n d i v i d u a l ' s r e s p o n s e . As t h e t r a n s a c t i o n becomes l e s s f a m i l i a r o r t h e c o n t e x t more complex, i t i s e x p e c t e d t h a t t h e i n f l u e n c e o f f r a m i n g e f f e c t s m i ght i n c r e a s e . In t h e s e t e s t s I ask whether a number o f s l i g h t m a n i p u l a t i o n s i n the p h r a s i n g o f t h e s u r v e y q u e s t i o n might e x e r t a s u b s t a n t i a l i n f l u e n c e on s u r v e y r e s u l t s : f o r t h e p a r t i c u l a r changes which a r e i n v e s t i g a t e d , most p r e c e d i n g s t u d i e s as w e l l as t h e i m p l i c a t i o n s o f 73 u t i l i t y t h e o r y s u g g e s t t h a t / i t h e . d i f f e r e n c e s s h o u l d not prove to be s - i g n ' i f i - \" c a n t . I n f l u e n c e o f A n c h o r i n g B i a s e s P r e v i o u s s t u d i e s which v a l u e non-market goods d i s a g r e e as t o whether t h e p a r t i c u l a r v a l u e s which a r e s e l e c t e d as t h e s t a r t i n g p o i n t o f a b i d d i n g game o r c l o s e d - e n d e d v a l u a t i o n p r o c e d u r e w i l l s i g n i f i c a n t l y a f f e c t the mag-n i t u d e o f e s t i m a t e d a v e r a g e payment o r c o m p e n s a t i o n p r i c e s . S e v e r a l t e s t s have t h e r e f o r e been d e s i g n e d t o i n v e s t i g a t e t h e i n f l u e n c e and r o b u s t n e s s o f such a n c h o r i n g b i a s e s . I n f l u e n c e o f P r o c e s s V a r i a b l e s A l a r g e number o f p r o c e s s o r manner v a r i a b l e s have been advanced as b e i n g p o t e n t i a l l y s i g n i f i c a n t d e t e r m i n a n t s o f an i n d i v i d u a l ' s e x p r e s s e d p r e f e r e n c e s . In t h e c o n t e x t o f non-market e n v i r o n m e n t a l goods, both r e s p o n -s i b i l i t y c o s t s and t h e a v o i d a n c e o f r e g r e t a p p e a r t o be p a r t i c u l a r l y p o t e n t c o n t r i b u t o r s t o an i n d i v i d u a l ' s e x p r e s s e d v a l u a t i o n o f a good o r a c t i v i t y . V a r i a t i o n s i n t h e p e r c e i v e d r e s p o n s i b i l i t y p l a c e d on a r e s p o n d e n t o r i n h i s o r her p o t e n t i a l f o r f u t u r e r e g r e t might t h e r e f o r e be e x p e c t e d t o s i g n f i c a n t l y a l t e r t h e magnitude o f a s s o c i a t e d r e s p o n s e s , and c o u l d p r o v i d e a p a r t i a l e x p l a n a t i o n f o r o b s e r v e d d i f f e r e n c e s between e q u i v a l e n t and c ompensating v a r i a t i o n measures o f v a l u e . SURVEY INSTRUMENT CHARACTERISTICS Two d i f f e r e n t s e t s o f e x p e r i m e n t a l t e s t s have been d e v e l o p e d t o e x p l o r e t h e s e problem a r e a s . The f i r s t and l a r g e r group i n v e s t i g a t e the v a l u a t i o n o f non-market goods i n t h e c o n t e x t o f an i n d i v i d u a l ' s w i l l i n g n e s s t o make t r a d e - o f f s between d i f f e r e n t l e v e l s o f e n v i r o n m e n t a l q u a l i t y o r some 74 o t h e r good and monetary g a i n s o r l o s s e s . I n f o r m a t i o n r e l e v a n t t o a l l s i x problem a r e a s was o b t a i n e d from t h e r e s u l t s o f t h e s e s u r v e y s . A t o t a l o f f o r t y - t h r e e d i f f e r e n t t e s t q u e s t i o n s were run i n the s e r i e s , w i t h t he sample p o p u l a t i o n s i n each c a s e l a r g e l y composed o f u n d e r g r a d u a t e s t u d e n t s e n r o l l e d i n economics c l a s s e s a t the U n i v e r s i t y o f B r i t i s h Columbia. Sample s i z e s f o r t h i s f i r s t group o f t e s t s a v e r a g e d about f i f t y p e r s o n s . A second s e t o f t e s t s was a d m i n i s t e r e d t o a d u l t v i s i t o r s t o the P r o v i n c i a l Museum i n V i c t o r i a , B r i t i s h Columbia. These q u e s t i o n s were con-c e r n e d w i t h t h e v a l u a t i o n o f u n p r i c e d goods i n t h e c o n t e x t o f v i s i t o r ' s s t a t e d w i l l i n g n e s s t o pay f o r , o r w i l l i n g n e s s t o a c c e p t compensation i n r e t u r n f o r g i v i n g up, an o p p o r t u n i t y t o view t h e e x h i b i t s o f the Museum. Due to a number o f c o n t r a i n t s , i n f o r m a t i o n r e l e v a n t t o o n l y two problem a r e a s was o b t a i n e d from t he r e s u l t s o f t h e s e s u r v e y s . A t o t a l o f n i n e t e e n d i f f e r e n t t e s t s were c o n d u c t e d i n the s e r i e s , w i t h a v e r a g e sample s i z e s f o r each ex-p e r i m e n t o f about one hundred p e r s o n s . The t e s t q u e s t i o n s a d m i n i s t e r e d t o t h e U n i v e r i t y o f B r i t i s h Columbia s t u d e n t groups were d e s i g n e d t o be s e l f - e x p l a n a t o r y , s h o r t and easy t o com-prehend. In each c a s e an i n t r o d u c t o r y d e s c r i p t i o n o f g e n e r a l s t u d y o b j e c -t i v e s and r a t i o n a l e was f o l l o w e d by t h e v a l u a t i o n q u e s t i o n s , which i n a l l c a s e s but one r e q u i r e d o n l y a y e s o r no r e s p o n s e . The m a j o r i t y o f the s u r v e y s were c o n d u c t e d d u r i n g t h e months o f O c t o b e r and November, 1981. A randomly s e l e c t e d c r o s s - s e c t i o n o f the q u e s t i o n n a i r e s was passed o u t p r i o r t o t h e b e g i n n i n g o f a c l a s s s e s s i o n , w i t h each p a r t i c i p a n t r e c e i v i n g one form from each o f two n o n - i n t e r f e r i n g s e t s . S t u d e n t s were t o l d o n l y t h e name and s t a t u s o f t h e a d m i n i s t r a t o r ( i n a l l c a s e s m y s e l f ) and i n f o r m e d t h a t t h e i r p a r t i c i p a t i o n was wanted t o a s s i s t i n t h e c o m p l e t i o n o f a s t u d y b e i n g c o n d u c t e d t h r o u g h t he U n i v e r s i t y o f B r i t i s h Columbia. A t o t a l o f f i v e t o t e n 75 m i n u t e s was then a l l o t t e d f o r c o m p l e t i o n o f t h e q u e s t i o n n a i r e s . Once a l l forms had been c o l l e c t e d , a b r i e f e x p l a n a t i o n o f consumer's s u r p l u s measures was u s u a l l y g i v e n t o t h e c l a s s and i n some c a s e s a s h o r t d i s c u s s i o n f o l l o w e d . The P r o v i n c i a l Museum t e s t s were c a r r i e d o u t by f o u r t r a i n e d r e -s e a r c h e r s d u r i n g the months o f August t h r o u g h November, 1981. P e r s o n a l i n t e r -views were c o n d u c t e d u s i n g random s a m p l i n g p r o c e d u r e s ; t h e i n t e r v i e w s took p l a c e a t d i f f e r e n t t i m e s o f t h e day i n a number o f d i f f e r e n t l o c a t i o n s i n o r d e r t o o b t a i n a r e p r e s e n t a t i v e range o f r e s p o n d e n t s . Most q u e s t i o n n a i r e s were f i l l e d i n by the p a r t i c i p a n t s , a l t h o u g h i n some c a s e s the i n t e r v i e w e r wrote down t h e v e r b a l r e s p o n s e s o f s u b j e c t s . C l a r i f i c a t i o n o f the c o n c e p t s o r i n s t r u c t i o n s was p r o v i d e d o n l y upon r e q u e s t i n o r d e r t o m i n i m i z e t h e i n f l u -ence o f i n f o r m a t i o n b i a s e s . A l l i n t e r v i e w s w i t h Museum v i s i t o r s were c a r r i e d o u t a t t h e s i t e , w h i l e s e p a r a t e q u e s t i o n s were asked o f n o n - v i s i t o r s a t a second V i c t o r i a s i t e , i n Vancouver, and i n two o t h e r B r i t i s h Columbian c i t i e s ( N e l s o n and C h i l l i w a c k ) . A l l v e r s i o n s o f the t e s t s were ke p t s h o r t (one page o n l y ) , w i t h an i n t r o d u c t o r y d e s c r i p t i o n o f Museum s e r v i c e s and s e l e c t i v e s t u d y o b j e c t i v e s f o l l o w e d by t h r e e t o f i v e q u e s t i o n s . A l l but one o f t h e s e r e q u i r e d o n l y a y e s o r no r e s p o n s e , w i t h t h e e x c e p t i o n b e i n g an open-ended q u e s t i o n d e s i g n e d t o e l i c i t more g e n e r a l comments. V i s i t o r s t o t h e Museum were q u e s t i o n e d both b e f o r e b e g i n n i n g and a f t e r c o m p l e t i n g t o u r s o f the e x h i b i t s i n o r d e r t o see i f a c o n s i s t e n t d i f f e r e n c e i n b e t w e e n - s u b j e c t r e s p o n s e s was o b t a i n e d . In some c a s e s , t h e i n t e r v i e w e r a l s o o r a l l y i n q u i r e d (and s u b s e q u e n t l y noted) whether t h e r e s p o n d e n t had p r e v i o u s l y v i s i t e d t he Museum, and one group o f t o u r i s t s was asked t h e i r i n t e n d e d l e n g t h o f s t a y i n V i c t o r i a . 76 SELECTION OF SURVEY QUESTIONS T h i s s e c t i o n b r i e f l y d e s c r i b e s t h e key f e a t u r e s o f the t e s t q u e s t i o n s used i n both t h e U n i v e r s i t y o f B r i t i s h Columbia and P r o v i n c i a l Museum s e t s o f e x p e r i m e n t s . A d d i t i o n a l i n f o r m a t i o n i s g i v e n i n t h e subsequent c h a p t e r , which p r e s e n t s an a n a l y s i s o f s u r v e y r e s u l t s . A complete s e t o f q u e s t i o n -n a i r e s i s i n c l u d e d as p a r t o f t h e - A p p e n d i x . S u r v e y s Conducted a t the U n i v e r s i t y o f B r i t i s h Columbia The U n i v e r s i t y o f B r i t i s h Columbia s u r v e y s can be d i v i d e d i n t o t h r e e g e n e r a l g r o u p s . A f i r s t s e t o f twenty forms asked i n d i v i d u a l s ' w i l l i n g n e s s t o pay f o r , o r w i l l i n g n e s s t o s e l l t h e i r r i g h t t o , d i f f e r e n t l e v e l s o f e n v i r o n -mental q u a l i t y . In each c a s e , an i n t r o d u c t o r y p a r a g r a p h f i r s t d e s c r i b e d t h e l i n k between i n d u s t r i a l growth and d e c l i n i n g a i r q u a l i t y and emphasized t h a t p r o t e c t i o n o f t h e envi r o n m e n t c o s t s money. T h i s same i n i t i a l d e s c r i p t i o n was i n c l u d e d f o r a l l s u r v e y s i n t h e group. The w i l l i n g n e s s t o pay q u e s t i o n s next d e s c r i b e d t h e h y p o t h e t i c a l e x i s t e n c e o f a s p e c i a l e n v i r o n m e n t a l q u a l i t y t a x which would r e q u i r e a l l s t u d e n t s and o t h e r l o c a l r e s i d e n t s t o pay equal amounts i n o r d e r t o p r e v e n t a d e c l i n e i n ave r a g e a i r q u a l i t y l e v e l s o r t o m a i n t a i n p r e s e n t a r e a a i r q u a l i t y s t a n d a r d s . The w i l l i n g n e s s t o s e l l ques-t i o n s s u g g e s t e d t h a t a w i l l i n g n e s s t o a l l o w d e c l i n e s i n l o c a l a i r q u a l i t y c o u l d r e s u l t i n d e c r e a s e s i n P r o v i n c i a l t a x e s f o r a l l a r e a r e s i d e n t s o r e q u i v a l e n t annual c ompensation payments. T h i s i n f o r m a t i o n was e x t e n s i v e l y p r e - t e s t e d and i n t e r v i e w s showed t h a t t h e frameworks which were employed a p p e a r e d b e l i e v a b l e and were r e a d i l y u n d e r s t o o d by most s t u d e n t s . Two i n t r o d u c t o r y q u e s t i o n s o f g e n e r a l i n t e r e s t f o l l o w e d t h e i n i t i a l d e s c r i p t i o n , p r i m a r i l y as a means o f g e t t i n g t h e s t u d e n t s i n v o l v e d i n answer-i n g s u r v e y q u e s t i o n s . A t h i r d q u e s t i o n , o f p r i m a r y s i g n i f i c a n c e t o s t u d y 77 o b j e c t i v e s , then asked f o r i n f o r m a t i o n r e g a r d i n g the i n d i v i d u a l ' s w i l l i n g n e s s t o pay f o r h i g h e r l e v e l s , o r w i l l i n g n e s s t o a c c e p t l o w e r l e v e l s , o f e n v i r o n -mental q u a l i t y . F i v e v e r s i o n s o f t h i s q u e s t i o n were employed: 1. A f i r s t p r o posed a $10.00 payment and, depending on t h e answer, s u b s e q u e n t l y p r e s e n t e d e i t h e r $25.00 o r $5.00; 2. A second v e r s i o n f o l l o w e d t h i s same form but v a r i e d the amount o f monetary payment; 3. A t h i r d f o r m a t asked t h e maximum (minimum) amount t h a t p e o p l e were w i l l i n g t o pay ( w i l l i n g t o a c c e p t ) ; 4. A f o u r t h p r o v i d e d a frame o f r e f e r e n c e by p r e c e d i n g the payment q u e s t i o n w i t h a s h o r t l i s t o f t h e a v e r a g e annual e x p e n d i t u r e s made by P r o v i n c i a l r e s i d e n t s f o r a number o f o t h e r t y p e s o f goods and s e r v i c e s ; and 5. A f i n a l v e r s i o n asked t h a t e i t h e r c u r r e n t o r d e s i r e d payments f o r e n v i r o n m e n t a l q u a l i t y be ranked r e l a t i v e t o a number o f o t h e r e x p e n d i t u r e c l a i m s . A second s e t o f seven forms u t i l i z e d an a v e r s i v e n e s s s c a l e d e v e l o p e d by Kahneman and T v e r s k y t o e x p l o r e t h e r o l e o f r e s p o n s i b i l i t y c o s t s and , r e g r e t i n the v a l u a t i o n o f non-market goods. S u b j e c t s were asked t o s c o r e t h e a v e r s i v e n e s s o f t e n d i f f e r e n t u n p l e a s a n t e v e n t s on a s c a l e o f 0 t o 20, r e l a t i v e t o an i n v a r i a n t r e f e r e n c e e v e n t which was a s s i g n e d a s c o r e o f 10. Two v e r s i o n s o f the q u e s t i o n compared t h e a v e r s i v e n e s s o f e n v i r o n m e n t a l deg-r a d a t i o n \u00E2\u0080\u0094 i n one c a s e a d e c l i n e i n e n v i r o n m e n t a l q u a l i t y , i n t h e o t h e r t h e p o t e n t i a l e x t i n c t i o n o f s e v e r a l r a r e s p e c i e s o f mammals--in a h y p o t h e t i c a l s i t u a t i o n where t h e i n d i v i d u a l was i n p a r t t o blame and i n one where he o r she was n o t . A t h i r d v e r s i o n l o o k e d a t the i n f l u e n c e o f s u r v e y d e s i g n on r e s p o n s i b i l i t y c o s t s by comparing t h e e f f e c t s o f p r i o r h y p o t h e t i c a l t e l e p h o n e and i n - p e r s o n c o n t a c t s w i t h s u r v e y p a r t i c i p a n t s . 78 A t h i r d s e t o f s i x t e e n forms compared i n d i v i d u a l s ' r e s p o n s e s t o t h e t h r e e major a l t e r n a t i v e v e r s i o n s o f h y p o t h e t i c a l q u e s t i o n s f o r both t h e pay-ment and co m p e n s a t i o n a p p r o a c h e s . In each c a s e an i n t r o d u c t o r y p a r a g r a p h d e s c r i b e d s t u d y o b j e c t i v e s and e s t a b l i s h e d t h e g e n e r a l c o n t e x t w i t h i n which t h e good o r e x p e r i e n c e c o u l d be p u r c h a s e d o r s o l d . The same s e r i e s o f t e n e v e n t s o r a c t i v i t i e s was then p r e s e n t e d t o a l l r e s p o n d e n t s . Of t h e e i g h t pay-ment and compensation v e r s i o n s , two q u e s t i o n n a i r e s asked f o r the p a r t i c i p a n t ' s r e s p o n s e t o an open-ended q u e s t i o n , f o u r forms p r e s e n t e d a l l - o r - n o n e payment a l t e r n a t i v e s and two forms i n v o l v e d t h e s u b j e c t i n a b i d d i n g game u s i n g d i f f e r e n t i n c r e m e n t s . In a d d i t i o n , one o f t h e t e n q u e s t i o n s was chosen so as t o f a c i l i t a t e a s e p a r a t e c omparison o f p a r t i c i p a n t s ' r e s p o n s e s t o h y p o t h e t i c a l and t o a c t u a l o f f e r s o f monetary payment o r compensation. S u r v e y s Conducted a t the P r o v i n c i a l Museum The s u r v e y s d e v e l o p e d f o r use a t t h e P r o v i n c i a l Museum a r e o f t h r e e g e n e r a l t y p e s . A f i r s t s e t o f t w e l v e forms p r e s e n t e d an i n t r o d u c t o r y des-c r i p t i o n o f Museum s e r v i c e s and a b r i e f i n t r o d u c t i o n t o t h e r a t i o n a l e f o r u s i n g w i l l i n g n e s s t o pay as a measure o f economic v a l u e . F o l l o w i n g t h r e e s h o r t i n t r o d u c t o r y q u e s t i o n s , d e s i g n e d t o p r o v i d e b a s i c i n f o r m a t i o n r e g a r d i n g r e s p o n d e n t s ' p l a c e o f r e s i d e n c e and l e n g t h o f s t a y i n V i c t o r i a , t h e q u e s t i o n -n a i r e s e i t h e r asked v i s i t o r s ' w i l l i n g n e s s t o pay an e n t r a n c e f e e t o v i s i t t h e Museum o r asked t h e maximum annual p r o v i n c i a l t a x payment t h a t t h e y would be w i l l i n g t o pay t o e n s u r e t h e q u a l i t y o f Museum e x h i b i t s . In some c a s e s t h e e n t r a n c e f e e s which must be p a i d t o v i s i t a number o f o t h e r r e g i o n a l o r i n t e r -n a t i o n a l e x h i b i t s were a l s o shown i n o r d e r t o t e s t t h e i n f l u e n c e o f v a r y i n g frames o f r e f e r e n c e on v i s i t o r s ' e x p r e s s e d p r e f e r e n c e s . A l l v e r s i o n s ( e x c e p t , o f c o u r s e , open-ended o p t i o n s ) were p r e s e n t e d u s i n g payments o f d i f f e r i n g 79 amounts .as a t e s t f o r a n c h o r i n g b i a s e s , and c o n c l u d e d w i t h a g e n e r a l q u e s t i o n d e s i g n e d t o e l i c i t b r o a d - r a n g i n g o r a l r e s p o n s e s c o n c e r n i n g t he r o l e o r d u t i e s o f t h e Museum. A second s e t o f t h r e e q u e s t i o n n a i r e s was d e s i g n e d t o e s t i m a t e t he amount o f compensation t h a t would be r e q u i r e d i f the Museum were t o be c l o s e d o r t h e q u a l i t y o f Museum s e r v i c e s were a l l o w e d t o d e c l i n e . The ques-t i o n t h e r e f o r e assumes t h a t p r e s e n t u s e r s o f t h e Museum c o n s i d e r t h e i r r i g h t t o v i s i t t h e e x h i b i t s a p a r t o f t h e i r e n t i t l e m e n t as p r o v i n c i a l r e s i d e n t s and i m p l i e s t h a t t h e y c o u l d d e s e r v e compensation i f the e x p e r i e n c e were no l o n g e r a v a i l a b l e . F o l l o w i n g t h e same i n t r o d u c t o r y d e s c r i p t i o n , the i d e a was i n t r o -duced t h a t c l o s u r e o f the Museum o r a d e c l i n e i n i t s q u a l i t y c o u l d r e s u l t i n s u b s t a n t i a l f i n a n c i a l s a v i n g s f o r t h e P r o v i n c i a l Government. I n d i v i d u a l s were then a s k e d whether s p e c i f i e d monetary payments o r e q u i v a l e n t r e d u c t i o n s i n annual p r o v i n c i a l t a x e s would be a c c e p t e d as compensation f o r a c u r t a i l -ment i n t h e p r e s e n t l e v e l o f Museum s e r v i c e s . A f i n a l s e t o f f o u r forms was d e s i g n e d t o e s t i m a t e t he v a l u e o f the Museum t o p r o v i n c i a l r e s i d e n t s who were n o t a t p r e s e n t v i s i t i n g and who mi g h t n e v e r v i s i t i t s e x h i b i t s i n p e r s o n . A b r i e f d e s c r i p t i o n o f both Museum s e r -v i c e s and s u r v e y o b j e c t i v e s was f i r s t p r o v i d e d f o r p a r t i c i p a n t s , who were then asked i f t h e y would be w i l l i n g t o make an i n c r e m e n t a l t a x payment i n o r d e r t o p r e s e r v e t h e i r o p p o r t u n i t y t o v i s i t t h e Museum a t some f u t u r e time as w e l l as s i m p l y t o e n s u r e i t s c o n t i n u e d e x i s t e n c e . The f o u r v e r s i o n s p r e -s e n t e d t h r e e d i f f e r e n t l e v e l s o f payment as w e l l as an open-ended form o f t h e q u e s t i o n . 80 CHAPTER VI ANALYSIS OF SURVEY RESULTS T h i s c h a p t e r p r e s e n t s t h e f i n d i n g s o f the e x p e r i m e n t a l t e s t s f o r each o f t h e s i x problem a r e a s which have been o u t l i n e d i n t h e p r e v i o u s d i s c u s s i o n . Key r e s u l t s a r e p r e s e n t e d i n t a b u l a r form and s t a t i s t i c a l t e s t s o f the s i g n i -f i c a n c e o f s u r v e y r e s p o n s e s a r e i n c l u d e d where a p p r o p r i a t e . The q u e s t i o n -n a i r e s used i n each c o m p a r a t i v e t e s t a r e i d e n t i f i e d by t h e i r numbers, which r e f e r t o t h e complete l i s t i n g o f s u r v e y t e s t s i n c l u d e d as p a r t o f t h e Appendix. Each o f t h e problem a r e a s i s r e v i e w e d i n t u r n , w h i l e the d i s c u s s i o n o f C h a p t e r VII w i l l examine the r e l a t i o n between t h e s e c o n c e r n s i n more d e t a i l and i n v e s t i g a t e some o f the b r o a d e r i m p l i c a t i o n s o f the r e s e a r c h r e s u l t s . DIFFERENCES IN PAYMENT AND COMPENSATION MEASURES OF VALUE The e m p i r i c a l i n f o r m a t i o n which has been c o l l e c t e d f i r m l y s u p p o r t s t h e h y p o t h e s i s t h a t s u b s t a n t i a l l y more compensation w i l l be demanded t o r e l i n q u i s h a good o r t o f o r e g o i t s use than would u s u a l l y be p a i d t o r e t a i n o r t o o b t a i n t h e same good. Ten o f t h e f o u r t e e n comparisons o f s e l l i n g and payment a l t e r -n a t i v e s which w i l l be examined a r e s i g n i f i c a n t l y d i f f e r e n t a t the 5 p e r c e n t l e v e l o f c o n f i d e n c e on the b a s i s o f a C h i - S q u a r e t e s t and i n a l l c a s e s meas-ur e s o f compensation demanded exceed i n d i v i d u a l s ' w i l l i n g n e s s t o pay f o r a good. The e x p e r i m e n t a l e v i d e n c e t h e r e f o r e s t r o n g l y s u p p o r t s the c o n t e n t i o n t h a t e x p r e s s e d p r e f e r e n c e v a l u a t i o n s o f non-market commodities and a c t i v i t i e s w i l l g e n e r a l l y v a r y w i t h an i n d i v i d u a l ' s p e r c e p t i o n o f h i s o r h e r e n t i t l e m e n t t o o r o w n e r s h i p o f t h e good under c o n s i d e r a t i o n . 81 T h i s s e c t i o n p r e s e n t s the i n f o r m a t i o n o b t a i n e d i n r e s p o n s e t o hypo-t h e t i c a l q u e s t i o n s . E a r l i e r examples, d i s c u s s e d i n C h a p t e r IV, i n c l u d e c o n t i n g e n t s u r v e y s which i n d i c a t e t h a t i n d i v i d u a l s w i l l f r e q u e n t l y r e q u i r e a s i g n i f i c a n t l y l a r g e r sum t o f o r e g o the use o f an e n v i r o n m e n t a l r e s o u r c e than t h e y would pay t o m a i n t a i n c u r r e n t a c c e s s r i g h t s . A d d i t i o n a l e x p e r i m e n t a l t e s t s , which compare payment and compensation measures o f v a l u e f o r a c t u a l t r a n s a c t i o n s i n v o l v i n g r e a l exchanges o f f u n d s , w i l l a l s o be d i s c u s s e d i n t h i s c h a p t e r . The t e s t s i t u a t i o n s were d e s i g n e d t o encourage p a r t i c i p a n t s t o r e s p o n d a c c u r a t e l y , and t h e s t a t e d d o l l a r amounts were s u f f i c i e n t l y s m a l l so as t o m i n i m i z e the i n f l u e n c e o f income o r w e a l t h e f f e c t s . In each c a s e o n l y one o p t i o n \u00E2\u0080\u0094 a n o p p o r t u n i t y t o pay ( f o r example, f o r e n v i r o n m e n t a l q u a l i t y ) o r an o p p o r t u n i t y t o be compensated f o r t h e l o s s o f a g ood\u00E2\u0080\u0094was p r e s e n t e d t o each i n d i v i d u a l . D i s c u s s i o n s among p a r t i c i p a n t s were not a l l o w e d and no i n f o r m a -t i o n was g i v e n c o n c e r n i n g s u r v e y o b j e c t i v e s which might have i n f l u e n c e d r e s p o n s e s t o s u b s e q u e n t e x p e r i m e n t s . T e s t 1 ( Q u e s t i o n n a i r e s l a and 2a) A f i r s t e x p e r i m e n t compared t h e w r i t t e n r e s p o n s e s o f two groups o f s t u d e n t s t o one o f two h y p o t h e t i c a l q u e s t i o n s c o n c e r n i n g the v a l u e o f e n v i r o n -mental q u a l i t y . One q u e s t i o n asked the p a r t i c i p a n t s ' w i l l i n g n e s s t o pay an annual t a x o f $25.00 \" i n o r d e r t o p r e v e n t a d e c l i n e i n a v e r a g e a i r q u a l i t y l e v e l s . \" The a l t e r n a t i v e q u e s t i o n asked the p a r t i c i p a n t s ' w i l l i n g n e s s t o a c c e p t a d e c r e a s e i n annual t a x e s o f $25.00 i f as a r e s u l t average a i r q u a l i t y l e v e l s were t o d e c l i n e . The i n t r o d u c t o r y i n f o r m a t i o n p r e s e n t e d t o r e s p o n d e n t s was i d e n t i c a l , and both q u e s t i o n s were n o n - n e g o t i a b l e i n the sense o f r e q u i r -i n g s i m p l y a y e s o r no answer. In t h e absence o f s i g n i f i c a n t income o r w e a l t h e f f e c t s , and g i v e n a 82 random d i s t r i b u t i o n of. p r e f e r e n c e s t h r o u g h o u t t he sample p o p u l a t i o n , t he c o n v e n t i o n a l e x p e c t a t i o n i s t h a t t h e e x p r e s s e d v a l u e o f e n v i r o n m e n t a l q u a l i t y s h o u l d be c o n s i s t e n t between the two measures. I f i n d i v i d u a l s a r e w i l l i n g t o pay $25.00 o r more t o p r e v e n t a d e c l i n e i n a i r q u a l i t y , t h e y s h o u l d r e f u s e t o a c c e p t l e s s t h a n t h i s same amount o f compensation i n r e t u r n f o r g i v i n g up p r e s e n t c o n d i t i o n s . S i m i l a r l y , t he p e r c e n t a g e o f p e o p l e who a r e w i l l i n g t o a c c e p t $25.00 i n r e t u r n f o r l o w e r l e v e l s o f a i r q u a l i t y , and t h e r e b y i n d i c a t e t h a t i t s v a l u e t o them does n o t exceed t h i s sum, s h o u l d be equal t o the p e r -c e n t a g e which i s u n w i l l i n g t o pay more than $25.00 t o p r e v e n t a d e c l i n e i n a i r q u a l i t y . The r e s u l t s o f t h e e x p e r i m e n t do n o t conform t o t h i s e x p e c t a t i o n . W h i l e 73 p e r c e n t o f t h e p a r t i c i p a n t s (41 o f 56) i n d i c a t e d t h e i r w i l l i n g n e s s . t o pay $25.00 o r more t o p r e v e n t a d e c l i n e i n a i r q u a l i t y , f o r t y - e i g h t o f f i f t y - t w o r e s p o n d e n t s (92 p e r c e n t ) r e f u s e d t o a c c e p t l o w e r a i r q u a l i t y l e v e l s i n r e t u r n f o r $25.00 i n co m p e n s a t i o n . The f i f t e e n r e s p o n d e n t s who r e f u s e d t o pay t h i s amount e x p r e s s e d t h e i r u n w i11ingness t o g i v e up $25.00 t o p r e v e n t a d e c l i n e i n c u r r e n t a i r q u a l i t y l e v e l s , w h i l e t h e f o u r r e s p o n d e n t s who a c c e p t e d t h e o f f e r o f $25.00 i n compensation i n d i c a t e d t h e i r u n w i l l i n g n e s s t o make t h i s t r a d e . W i l l i n g t o pay $25 W i l l i n g t o a c c e p t $25 T o t a l x\" = 6.65 V a l u e > $25 V a l u e < $25 T o t a l 41 ( y e s ) 15 (no) 56 48 (no) 4 ( y e s ) 52_ ( T e s t 1) 89 19 108 The p r o p o r t i o n o f r e s p o n d e n t s who v a l u e p r e s e n t a i r q u a l i t y c o n d i -t i o n s a t more than $25.00 i s s i g n i f i c a n t l y g r e a t e r when measured on the b a s i s 83 o f t h e i r r e f u s a l t o a c c e p t compensation than when measured on the b a s i s o f t h e i r w i l l i n g n e s s t o pay. U s i n g a C h i - S q u a r e t e s t and a two-by-two c o n t i n -gency t a b l e w i t h one Degree o f Freedom, the d i f f e r e n c e i s s t a t i s t i c a l l y s i g n i f i c a n t a t t h e 5 p e r c e n t l e v e l . T h i s s u g g e s t s t h a t the c h o i c e o f e v a l u a -t i o n p r o c e d u r e s has a m a j o r impact on r e s p o n d e n t s ' e x p r e s s e d v a l u e s . T e s t s 2, 3, and 4 ( Q u e s t i o n n a i r e s l b and 2b, 3a and 3c, 3b and 3d) The second t e s t i s i d e n t i c a l t o the f i r s t e x c e p t t h a t the o r d e r o f the c l a u s e s used i n t h e v a l u a t i o n q u e s t i o n i s r e v e r s e d : r a t h e r than a s k i n g i f p a r t i c i p a n t s would be w i l l i n g t o pay ( a c c e p t ) a s t a t e d sum t o p r e v e n t ( p e r m i t ) d e c l i n e s i n a i r q u a l i t y , the q u e s t i o n asks whether, i n o r d e r t o p r e v e n t a d e c l i n e , r e s p o n d e n t s would e i t h e r a g r e e t o pay a s p e c i f i e d amount o f money o r a c c e p t a n o n - n e g o t i a b l e o f f e r o f c o m p e n s a t i o n . T w e n t y - e i g h t o f the s e v e n t y -t h r e e p e r s o n s r e s p o n d i n g t o the payment o p t i o n d e c l i n e d t o pay $25.00, w h i l e o n l y f o u r t e e n o f t h e f i f t y - e i g h t s t u d e n t s who were o f f e r e d compensation s a i d t h e y would a c c e p t . V a l u e > $25 V a l u e < $25 T o t a l W i l l i n g t o pay $25 45 28 73 W i l l i n g t o a c c e p t $25 44 14 58 ( T e s t 2) T o t a l 89 42 131 x 2 = 3.01 These r e s u l t s a g a i n c o n t r a s t w i t h t h e e x p e c t a t i o n o f equal sample p r o -p o r t i o n s , but t h e argument i s now l e s s s t r o n g . S i x t y - t w o p e r c e n t o f p a r t i c i - \u00E2\u0080\u00A2 pants were w i l l i n g t o pay t h e s p e c i f i e d $25.00 sum compared t o 76 p e r c e n t who r e f u s e d t o a c c e p t $25.00 as compensation. However, the c a l c u l a t e d x o f 3.01 84 i s n o t s i g n i f i c a n t a t t h e 5 p e r c e n t l e v e l . * The t h i r d and f o u r t h e x p e r i m e n t s a r e a g a i n s i m i l a r t o the f i r s t e x c e p t f o r t h e i n c o r p o r a t i o n o f one s e n t e n c e i n the i n t r o d u c t o r y d e s c r i p t i o n o f s u r v e y o b j e c t i v e s which i n f o r m s p a r t i c i p a n t s t h a t t h e y have been s e l e c t e d as p a r t o f e i t h e r a l a r g e o r s m a l l sample o f Vancouver a r e a r e s i d e n t s . I t was a n t i c i p a t e d t h a t t h i s a d d i t i o n , which emphasizes t h e r e s p o n s i b i l i t y c o s t s accompanying a p a r t i c i p a n t ' s d e c i s i o n , would i n c r e a s e t h e s i g n i f i c a n c e o f the d i s p a r i t y between payment and compensation measures o f v a l u e . The r e s u l t s o f the two t e s t s c o n f i r m t h i s e x p e c t a t i o n . In t e s t 3, n i n e t e e n o f t h i r t y - s e v e n r e s p o n d e n t s (58 p e r c e n t ) were w i l l i n g t o pay an annual t a x o f $25.00 t o p r e v e n t a d e c l i n e i n a v e r a g e a r e a a i r q u a l i t y l e v e l s w h i l e 81 p e r c e n t (26 o f 32) r e f u s e d t o a c c e p t $25.00 i n c o m p ensation. V a l u e > $25 V a l u e < $25 T o t a l W i l l i n g t o pay $25 19 14 33 W i l l i n g t o a c c e p t $25 __26 6 32_ ( T e s t 3) T o t a l 45 20 65 x 2 = 4.17 The r e s u l t s o f t e s t 4 show t h a t 37 p e r c e n t and 67 p e r c e n t o f r e s p o n -d e n t s v a l u e a i r q u a l i t y a t $25.00 o r more on t h e b a s i s o f payment and compen-2 s a t i o n measures. With r e s p e c t i v e x v a l u e s o f 4.17 and 7.08, both s i g n i f i c a n t a t t h e 5 p e r c e n t l e v e l , t h e e x p e r i m e n t s s u g g e s t t h a t t h e v a l u e which p a r t i c i -p a n ts p l a c e on a i r q u a l i t y i s l o w e r when measured on the b a s i s o f t h e i r w i l l i n g n e s s t o pay t h a n when measured on t h e b a s i s o f t h e i r w i l l i n g n e s s t o a c c e p t equal amounts o f monetary compensation f o r i t s l o s s . The c r i t i c a l v a l u e f o r t h e C h i - S q u a r e d i s t r i b u t i o n w i t h 1 D.F. i s 3.84 a t t h e 5 p e r c e n t l e v e l and 2.71 a t t h e 10 p e r c e n t l e v e l . 85 V a l u e > $25 V a l u e < $25 T o t a l W i l l i n g t o pay $25 11 19 30 W i l l i n g t o a c c e p t $25 __36 18 54 ( T e s t 4) T o t a l 47 37 84 x 2 = 7.08 T e s t 5 ( Q u e s t i o n n a i r e s 4b and 2d) The f i f t h t e s t gave p a r t i c i p a n t s t h e c l o s e d - e n d e d o p t i o n o f p a y i n g o r r e c e i v i n g $200.00 t o e i t h e r p r e v e n t o r a l l o w a d e c l i n e i n a v e r a g e a r e a a i r q u a l i t y l e v e l s . A l t h o u g h t h e q u e s t i o n remains h y p o t h e t i c a l , i t was a n t i c i p a t e d t h a t t h e s u b s t a n t i a l l y l a r g e r sum i n v o l v e d would e l i c i t more e x a g g e r a t e d \u00E2\u0080\u00A2 b e h a v i o r on t h e p a r t o f s u r v e y r e s p o n d e n t s . I f t h e p a t t e r n o f t h e p r e v i o u s t e s t s s t i l l h o l d s , we would t h e r e f o r e e x p e c t t o see a h i g h l y s i g n i f i c a n t d i f f e r e n c e i n t h e r e s p o n s e s t o payment and t o compensation q u e s t i o n s . V a l u e > $200 V a l u e < $200 T o t a l W i l l i n g t o pay $200 9 21 30 W i l l i n g t o a c c e p t $200 24 14 38 ( T e s t 5) T o t a l 33 35 68 2 x c = 7.50 T h i s i s i n d e e d what i s f o u n d , w i t h o n l y 30 p e r c e n t o f r e s p o n d e n t s (9 o f 30) w i l l i n g t o pay $200 t o p r e v e n t a d e c l i n e i n a i r q u a l i t y l e v e l s and f u l l y 63 p e r c e n t o f t h o s e q u e s t i o n e d r e f u s i n g t o a c c e p t an i d e n t i c a l sum as com p e n s a t i o n . These r e s u l t s a r e s i g n i f i c a n t a t the 5 p e r c e n t l e v e l . The t e s t t h e r e f o r e p r e s e n t s s t r o n g e v i d e n c e t h a t t he two measures o f economic worth a r e n o t e q u i v a l e n t , and t h a t t h e c h o i c e o f measurement a p p r o a c h can i n f l u e n c e t h e f i n a l e s t i m a t e d v a l u e s . 86 T e s t s 6, 7, and 8 ( Q u e s t i o n n a i r e s 8b and 9b, 8c and 9 c , 8d and 9d) These t h r e e t e s t s each compared one group o f p a r t i c i p a n t s ' w i l l i n g n e s s t o pay w i t h a n o t h e r ' s w i l l i n g n e s s t o a c c e p t compensation f o r a s e r i e s o f t e n e v e r y d a y goods and e x p e r i e n c e s . The i n t r o d u c t o r y i n f o r m a t i o n g i v e n t o both groups was s i m i l a r i n tone and o r g a n i z a t i o n b u t , o f c o u r s e , d i f f e r e d a c c o r d i n g t o whether i t d e s c r i b e d a c l o s e d - e n d e d o p t i o n t o p u r c h a s e a t i c k e t o r t o be compensated f o r i t s l o s s . T h r e e d i f f e r e n t d o l l a r amounts, r a n g i n g from $0.20 t o $1.00, were employed, w i t h t e s t 6 p r e s e n t i n g t h e l o w e s t sums and t e s t 8 the h i g h e s t . P a r t i c i p a n t s were i n s t r u c t e d t o i n d i c a t e , by c i r c l i n g e i t h e r y e s o r no, whether t h e y would a g r e e t o pay o r a c c e p t t h e s t a t e d amount. A l t h o u g h d i s p a r i t i e s i n s e l l i n g and b u y i n g b e h a v i o r were o b s e r v e d f o r a l l t e n i t e m s , t h e most i n f o r m a t i v e comparison ( f o r r e a s o n s which w i l l become c l e a r l a t e r on) c o n c e r n s t h e v a l u e s p l a c e d on a l o t t e r y t i c k e t which a f f o r d e d t h e s u b j e c t a one i n t h i r t y chance t o win an e l e c t r o n i c c a l c u l a t o r . A l t h o u g h a r e s p o n d e n t ' s p r e f e r e n c e o r a v e r s i o n f o r r i s k s w i l l o b v i o u s l y be r e f l e c t e d i n h i s o r her r e s p o n s e , t h e r e seems t o be no r e a s o n t o e x p e c t t h a t t h e i n f l u e n c e o f gambling o r chance b e h a v i o r w i l l be o t h e r than s y m e t r i c a l between the two measurement o p t i o n s . I n t e r e s t i n g l y , t h e d i f f e r e n c e i n payment and compensation measures o f v a l u e became more m e a n i n g f u l as t h e d o l l a r amount employed i n the e x p e r i m e n t s i n c r e a s e d . The r e s u l t s o f t h e h i g h e s t v a l u e t e s t d e m o n s t r a t e t h a t o n l y e i g h t o f t h i r t y p a r t i c i p a n t s (27 p e r c e n t ) i n d i c a t e d t h e i r w i l l i n g n e s s t o pay $1.00 t o p a r t i c i p a t e i n t h e l o t t e r y , w h i l e 50 p e r c e n t o f t h o s e q u e s t i o n e d (19 o f 38) r e f u s e d t o s e l l t h e i r e n t r y t i c k e t when o f f e r e d $1.00. However, t h i s d i f f e r -2 ence p r o v i d e s an x o f 3.81, which i s n o t s t a t i s t i c a l l y s i g n i f i c a n t a t the 5 p e r c e n t l e v e l . T e s t s 6 and 7 p r e s e n t the r e s u l t s o b t a i n e d when t h e amount o f payment 87 o r compensation was d e c r e a s e d t o o n l y $0.20 o r $0.60. The i n s i g n i f i c a n t d i f f e r e n c e shown i n t e s t 6 c o u l d r e f l e c t t h e f a c t t h a t $0.20 i s a v e r y s m a l l amount f o r p e o p l e t o pay o r r e c e i v e and t h a t o t h e r c o n s i d e r a t i o n s , such as an i n d i v i d u a l ' s d e s i r e t o p a r t i c i p a t e i n t h e game o r im a g i n e d p e e r - g r o u p p r e s -s u r e s , a r e dominant. S u b s t a n t i a l d i f f e r e n c e s i n p a r t i c i p a n t s ' b e h a v i o r b e g i n t o show up a t t h e $0.60 l e v e l o f payment o r c o m p e n s a t i o n , w i t h o n l y 34 p e r c e n t o f r e s p o n d e n t s i n d i c a t i n g t h a t t h e t i c k e t was worth $0.60 i f t h e y had t o pay f o r i t compared t o t h e 52 p e r c e n t o f t h o s e g i v e n a t i c k e t who i n d i c a t e d t h a t i t was worth more than $0.60. However, the x v a l u e o f 3.10 i s a g a i n n o t s t a t i s t i c a l l y s i g n i f i c a n t a t a 5 p e r c e n t l e v e l . W i l l i n g t o pay $0.20 W i l l i n g t o a c c e p t $0.20 T o t a l W i l l i n g t o pay $0.60 W i l l i n g t o a c c e p t $0.60 T o t a l V a l u e > $0.20 V a l u e < $0.20 T o t a l 32 15 47 33 14 47 65 29 94 V a l u e > $0.60 V a l u e < $0.60 T o t a l 16 31 47 24 22 46 40 53 93 ( T e s t 6) x = .03 ( T e s t 7) yf- = 3.10 W i l l i n g t o pay $1.00 W i l l i n g t o a c c e p t $1.00 T o t a l V a l u e > $1.00 V a l u e < $1.00 T o t a l 8 22 30 19 19 38 27 41 68 ( T e s t 8) 3.81 88 The f i n d i n g t h a t more s i g n i f i c a n t r e s u l t s a p p e a r once h i g h e r v a l u e s a r e employed p r o b a b l y r e f l e c t s t h e f a c t t h a t p a r t i c i p a n t s have begun t o s e r i o u s l y e v a l u a t e the c h o i c e t h a t must be made: a t l o w e r v a l u e s , i t s i m p l y i s n ' t worth an i n d i v i d u a l ' s t i m e t o c o n s i d e r the proposed t r a n s a c t i o n . T h i s i n t e r p r e t a t i o n i s c o n s i s t e n t w i t h t h e r e s u l t s o f e a r l i e r e x p e r i m e n t s , where t h e s t a t i s t i c a l s i g n i f i c a n c e o f o b s e r v e d d i f f e r e n c e s i n the two measures o f v a l u e was i n c r e a s e d when l a r g e r amounts o f payment o r compensation ( f o r example, $25.00 r a t h e r than $10.00) were t e s t e d . Y e t t h i s does n o t r e a l l y p r o v i d e an answer f o r t h e v a r i a t i o n i n the two measures, s i n c e f o r the same r e a s o n t h a t i t i s l e s s a t t r a c t i v e t o pay $1.00 t h a n t o pay $0.20 i t has a l s o become more a t t r a c t i v e t o a c c e p t $1.00 i n compensation. Whether i n d i v i d u a l s c o n t e m p l a t e t h e c h o i c e a t hand s e r i o u s l y o r f l i p p a n t l y t e l l s us l i t t l e about t h e new b e h a v i o r a l mechanisms which have come i n t o p l a y . o C o n s i d e r a t i o n s such as t h e p r e v i o u s l y d i s c u s s e d endowment e f f e c t ( T h a l e r , 1980)--which s u g g e s t s t h a t i n d i v i d u a l s f r e q u e n t l y underweight \" o p p o r t u n i t y c o s t s \" r e l a t i v e t o a c t u a l ( r e a l i z e d ) c o s t s , and t h e r e f o r e r e q u i r e a b e t t e r o f f e r t o w i l l i n g l y g i v e up ( t h a t i s , p l a c e a h i g h e r v a l u e on) money o r goods c o n s i d e r e d p a r t o f t h e i r endowment then a s s e t s which a r e not--may c o n t r i b u t e t o an e x p l a n a t i o n o f t h e i n c r e a s i n g d i s p a r i t y . For example, an argument c o u l d be made t h a t o n l y w i t h sums o f $1.00 o r more ( i n t h i s c a s e ) do monetary v a l u e s become s u f f i c i e n t t o be m e a n i n g f u l l y i n c l u d e d as p a r t o f an i n d i v i d u a l ' s p e r c e i v e d endowment. However, t h e e x p l a n a t i o n remains p a r t i a l and a d d i t i o n a l e x p e r i m e n t s which seek t o add t o t h e r e a s o n s b e h i n d o b s e r v e d d i f f e r e n c e s i n b u y i n g and s e l l i n g b e h a v i o r w i l l be d e s c r i b e d l a t e r i n t h i s c h a p t e r . 89 T e s t 9 ( Q u e s t i o n n a i r e s 8a and 9a) T h i s t e s t p r e s e n t e d i n d i v i d u a l s w i t h t h e same s e t o f t e n e v e r y d a y goods and e x p e r i e n c e s , but t h i s t ime each p a r t i c i p a n t was g i v e n a c h o i c e o f f i v e d i f f e r e n t payment l e v e l s and asked t o i n d i c a t e e i t h e r t h e maximum amount o f money which t h e y would be w i l l i n g t o pay t o o b t a i n each good o r the minimum amount o f money which t h e y would be w i l l i n g t o a c c e p t as compensation f o r i t s l o s s . T h i s range o f v a l u e s was n o n - n e g o t i a b l e , so t h a t t h e e x p r e s s i o n o f h i g h e r o r l o w e r amounts than t h e s t a t e d e n d p o i n t s was not p e r m i t t e d . V a l u e s e x p r e s s e d f o r a l o t t e r y t i c k e t , w i t h t h e p r i z e o f an e l e c t r o n i c c a l c u l a t o r , w i l l a g a i n be r e p o r t e d . I f t h e method o f e v a l u a t i o n made no d i f f e r e n c e , the mean v a l u e p l a c e d on t h e t i c k e t s h o u l d be the same r e g a r d l e s s o f whether p a r t i c i p a n t s ' w i l l i n g -ness t o pay o r c o m p e n s a t i o n demanded i s used as t h e b a s i s o f t h e e v a l u a t i o n . However, the r e s u l t s o f t h i s e x p e r i m e n t add t o the e v i d e n c e t h a t the s e l e c -t i o n o f a measurement t e c h n i q u e can have a s u b s t a n t i a l impact on t h e e x p r e s s e d v a l u e o f t h e good o r e x p e r i e n c e under c o n s i d e r a t i o n . Of the f o r t y -n i n e p e o p l e asked t o pay f o r a t i c k e t , o n l y f i v e (10 p e r c e n t ) s a i d t h a t i t was worth more than $1.00 whereas t h i r t e e n o f t h e f o r t y - e i g h t p e r s o n s o f f e r e d c o m p e n s a t i o n (27 p e r c e n t ) i n d i c a t e d t h a t i t was worth a t l e a s t $1.00 t o them. 2 The r e s u l t i n g x o f 4.59 i s s i g n i f i c a n t ( w i t h one Degree o f Freedom) a t the 5 p e r c e n t l e v e l . V a l u e > $1.00 V a l u e < $1.00 T o t a l W i l l i n g t o pay $1.00 5 44 49 W i l l i n g t o a c c e p t $1.00 13 35 48 ( T e s t 9) T o t a l 18 79 97 x 2 = 4.59 90 T e s t 10 ( Q u e s t i o n n a i r e s 8g and 9g) T h i s t e s t a g a i n p r e s e n t e d p a r t i c i p a n t s w i t h a l i s t o f t e n a c t i v i t i e s o r goods and i n s t r u c t i o n s t h a t each i t e m s h o u l d be a s s i g n e d a v a l u e under e i t h e r a w i l l i n g n e s s t o pay o r a w i l l i n g n e s s t o s e l l e v a l u a t i o n framework. However, no d o l l a r amounts were shown and no e n d p o i n t s were s p e c i f i e d ; i n s t e a d , r e s p o n d e n t s were asked t o w r i t e i n t h e d o l l a r amount which b e s t i n d i c a t e d the worth o f each e x p e r i e n c e . The r e s u l t s o f t h i s open-ended e x p e r i m e n t p r o v i d e v e r y s t r o n g s u p p o r t t h a t a marked d i f f e r e n c e i n e x p r e s s e d v a l u e s w i l l emerge i f compensation r a t h e r t h a n payment p r i c e s a r e a s s i g n e d . In r e s p o n s e t o the same l o t t e r y q u e s t i o n which has been d i s c u s s e d p r e v i o u s l y , o n l y two o f t h i r t y - s e v e n r e s p o n -d e n t s ( 5 . p e r c e n t ) were w i l l i n g t o pay $1.00 o r more i n o r d e r t o o b t a i n a t i c k e t . On t h e o t h e r hand, s e v e n t e e n o f t h i r t y - s i x p e r s o n s (47 p e r c e n t ) asked t o s t a t e t h e minimum amount o f monetary compensation t h a t t h e y would a c c e p t i n r e t u r n f o r g i v i n g up a t i c k e t i n d i c a t e d t h a t i t s v a l u e exceeded $1.00. The 2 d i f f e r e n c e i n t h e s e r e t u r n s i s s t r i k i n g , , and t h e c a l c u l a t e d x o f 16.44 i s s i g n i f i c a n t a t t h e 5 p e r c e n t l e v e l . V a l u e > $1.00 V a l u e < $1.00 T o t a l W i l l i n g t o pay $1.00 2 35 37 W i l l i n g t o a c c e p t $1.00 17 19 36_ ( T e s t 10) T o t a l 19 54 73 x 2 = 16.44 S e v e r a l r e a s o n s can be advanced t o e x p l a i n the o b s e r v e d d i s p a r i t y i n t h e open-ended t e s t . The l a c k o f g u i d a n c e i n a h y p o t h e t i c a l q u e s t i o n o f t h i s s o r t may l e a d t o a sense o f u n r e a l i t y on t h e p a r t o f many r e s p o n d e n t s , but i t i s n o t c l e a r why r e a c t i o n s t o o f f e r s o f c ompensation would be a f f e c t e d d i f f e r e n t l y t h a n p a r t i c i p a n t s ' w i l l i n g n e s s t o p u r c h a s e the l o t t e r y t i c k e t . Gaming e f f e c t s , however, might not prove t o be s y m e t r i c a l : t h e w i l l i n g n e s s t o pay q u e s t i o n may i n v o k e a r e s p o n d e n t ' s s p e c i f i c r e a c t i o n t o the p o s s i b i l i t y o f p u r c h a s i n g a c a l c u l a t o r , which many s t u d e n t s may a l r e a d y own and t h e r e f o r e v a l u e l e s s h i g h l y , w h i l e t h e w i l l i n g n e s s t o s e l l a l t e r n a t i v e may f o c u s a t t e n -t i o n on the more a t t r a c t i v e p r o s p e c t o f a low r i s k gamble. F u r t h e r m o r e , w h i l e e n d p o i n t s a r e not s p e c i f i e d o n l y t h e h i g h e r end o f t h e s c a l e i s t r u l y open s i n c e low e x p r e s s i o n s o f v a l u e a r e e f f e c t i v e l y bound by z e r o . Whatever t h e r e a s o n , t h e r e s u l t s c o n v i n c i n g l y d e m o n s t r a t e t h a t a sub-s t a n t i a l l y g r e a t e r p r o p o r t i o n o f t h o s e h o l d i n g t h e t i c k e t would r e f u s e t o t r a d e i t f o r an o f f e r o f $1.00 than would a g r e e t o buy i t a t t h a t p r i c e , w h i l e t h e r e l a t i v e magnitude o f t h e d i s p a r i t y a p p e a r s t o be e x a g g e r a t e d by the s e l e c t i o n o f an open-ended measurement a p p r o a c h . T h i s i n t e r p r e t a t i o n f o l l o w s even more s t r o n g l y from t h e r e s u l t s o f two o t h e r open-ended e x p e r i m e n t s , which compare t h e maximum annual t a x t h a t r e s p o n d e n t s would be w i l l i n g t o pay t o p r e v e n t a d e c l i n e i n a i r q u a l i t y l e v e l s w i t h t h e minimum t a x d e c r e a s e which would j u s t compensate them f o r t h e d e c l i n e . W h ile a l l twenty-one p e r s o n s who were asked the payment q u e s t i o n r e s -ponded, o n l y t h i r t e e n o f the f o r t y - s i x p a r t i c i p a n t s i n the s e l l i n g e x p e r i m e n t (28 p e r c e n t o f t h e sample) c h o s e , o r were a b l e , t o g i v e a s p e c i f i e d monetary v a l u e . F u r t h e r m o r e , t h e i r mean l e v e l o f compensation was n e a r l y $2,000,per p e r s o n compared t o o n l y $26.00 f o r t h e payment a l t e r n a t i v e . Twenty r e s p o n d e n t s (43 p e r c e n t ) r e f u s e d t o t r a d e c u r r e n t l e v e l s o f e n v i r o n m e n t a l q u a l i t y f o r any amount o f monetary c o m p e n s a t i o n , w h i l e t h e r e m a i n i n g t h i r t e e n p e r s o n s s i m p l y l e f t t h e q u e s t i o n b l a n k . C l e a r l y , t h e c h o i c e o f e v a l u a t i o n method p r o f o u n d l y a f f e c t e d r e s p o n d e n t s ' e x p r e s s e d v a l u e s . 92 T e s t s 11 and 12 ( Q u e s t i o n n a i r e s 8e and 93, 8 f and 9 f ) These two t e s t s i n v e s t i g a t e whether t h e i n t r o d u c t i o n o f b i d d i n g b e h a v i o r w i l l a f f e c t the magnitude o f t h e d i s p a r i t y between p a r t i c i p a n t s ' w i l l i n g n e s s t o pay and t h e i r d e s i r e t o a c c e p t compensation f o r the same s e r i e s o f t e n f a m i l i a r goods and a c t i v i t i e s . Respondents were g i v e n a s t a r t i n g p r i c e f o r each i t e m and asked t o i n d i c a t e t h e v a l u e t h e y p l a c e d on i t by moving th r o u g h a s e r i e s o f s u c c e s s i v e mental b i d s , as would be used i n an a u c t i o n . The s t a r t i n g p r i c e used i n both t h e payment and t h e compensation q u e s t i o n s i s t h e r e f o r e viewed as a minimum v a l u e , and p a r t i c i p a n t s were asked t o i n c r e a s e t h i s i n i t i a l v a l u e by e i t h e r o f two s p e c i f i e d amounts (which v a r i e d w i t h each q u e s t i o n ) u n t i l a maximum p u r c h a s e p r i c e o r a minimum s e l l i n g p r i c e was r e a c h e d . The d i f f e r e n c e i n b i d d i n g i n c r e m e n t s s h o u l d n o t have proved s i g n i f i -c a n t i n t h e p r e s e n t c a s e , and t h e r e s u l t s o f both t e s t s v e r i f y t he e x p e c t a -t i o n \u00E2\u0080\u0094 w h i c h a f t e r t h e p r e v i o u s t e n e x p e r i m e n t s s h o u l d no l o n g e r be s u r p r i s i n g - -t h a t t h e r e l a t i v e number o f p a r t i c i p a n t s v a l u i n g the l o t t e r y t i c k e t a t a s p e c i f i e d amount w i l l v a r y a c c o r d i n g t o whether the measure o f v a l u e i s based on t h e i r w i l l i n g n e s s t o p u r c h a s e i t o r t h e i r w i l l i n g n e s s t o a c c e p t an o f f e r o f c o m p e n s a t i o n . In t e s t 11, which employed a b i d d i n g i n c r e m e n t o f $0.20, 32 p e r c e n t o f r e s p o n d e n t s (10 o f 31) were w i l l i n g t o pay $1.00 o r more to p a r t i c i -p a t e i n t h e l o t t e r y w h i l e o n l y 41 p e r c e n t (15 o f 37) a c c e p t e d an o f f e r o f $1.00 i n compensation f o r g i v i n g up t h e i r t i c k e t . The x f o r t h i s t e s t was \u00E2\u0080\u00A25.04, which w i t h one D.F. i s s i g n i f i c a n t a t a 5 p e r c e n t l e v e l . With a b i d d i n g i n c r e m e n t o f $0.40, f o u r t e e n o f t h i r t y - f i v e r e s p o n d e n t s (40 p e r c e n t ) i n d i c a t e d t h a t p a r t i c i p a t i o n I n t h e l o t t e r y was worth a t l e a s t $1.00 t o them w h i l e t w e n t y - e i g h t o f t h e f o r t y - o n e p e r s o n s (71 p e r c e n t ) r e f u s e d 2 an o f f e r o f $1.00 i n t r a d e f o r t h e i r t i c k e t . The x o f 7.25 f o r t e s t 12, 93 c a l c u l a t e d from t h e r e s u l t i n g c o n t i n g e n c y t a b l e , i s a l s o s i g n i f i c a n t a t t h e 5 p e r c e n t l e v e l . V a l u e > $1.00 V a l u e < $1.00 T o t a l W i l l i n g t o pay $1.00 W i l l i n g t o a c c e p t $1.00 T o t a l 10 22 21 15 31 37 32 36 68 ( T e s t 11) 5.04 W i l l i n g t o pay $1.00 W i l l i n g t o a c c e p t $1.00 T o t a l V a l u e > $1.00 V a l u e < $1.00 T o t a l 14 21 35 29 12 41 43 33 76 ( T e s t 12) )C = 7.25 T e s t s 13 and 14 ( Q u e s t i o n n a i r e s b.. and b., b.. and h.) ~ The f i n a l two t e s t s comparing i n d i v i d u a l s ' p u r c h a s e and s e l l i n g p r i c e s a r e drawn from t h e s u r v e y s which were c o n d u c t e d a t t h e B.C. P r o v i n c i a l Museum/ As d e s c r i b e d i n some d e t a i l i n t h e p r e c e d i n g c h a p t e r , t h e s e t e s t s compare r e s p o n d e n t s ' w r i t t e n o r v e r b a l r e s p o n s e s t o a s e r i e s o f q u e s t i o n s d e s i g n e d t o h e l p d e t e r m i n e t h e economic v a l u e o f a v i s i t t o the Museum. Both t h e s e l l i n g and payment a l t e r n a t i v e s p r e s e n t an i n t r o d u c t o r y d e s c r i p t i o n o f Museum s e r v i c e s and s u r v e y o b j e c t i v e s , and t h e n go on t o ask c u r r e n t v i s i t o r s i f t h e y would be w i l l i n g t o a c c e p t an annual t a x r e d u c t i o n o f $10.00 i n r e t u r n f o r e i t h e r a d e c l i n e i n t h e q u a l i t y o f Museum s e r v i c e s ( t e s t 13) o r c l o s u r e o f the Museum ( t e s t 14) o r i f t h e y would make an equal annual payment t o m a i n t a i n t h e q u a l i t y o f t h e e x h i b i t s . The r e s u l t s o f both a l l - o r - n o n e frameworks s t r o n g l y s u p p o r t t h e e v i -94 dence o b t a i n e d i n t h e U n i v e r s i t y o f B r i t i s h Columbia e x p e r i m e n t s t h a t t he two measures f o r e s t i m a t i n g economic v a l u e s a r e s i g n i f i c a n t l y d i f f e r e n t . F o r t y -e i g h t p e r c e n t o f r e s p o n d e n t s (16 o f 33) were u n w i l l i n g t o pay a t a x o f $10.00 t o m a i n t a i n t h e p r e s e n t q u a l i t y o f Museum s e r v i c e s but o n l y 10 p e r c e n t o f v i s i t o r s (3 o f 30) would a g r e e t o a d e c l i n e i n Museum q u a l i t y i n r e t u r n f o r a p $10.00 annual t a x s a v i n g . With an x o f 10.88, t h e s e r e s u l t s a r e s i g n i f i c a n t a t a 5 p e r c e n t l e v e l and argue t h a t t h e two competing measures o f economic v a l u e a r e not e q u i v a l e n t . V a l u e > $10 V a l u e < $10 T o t a l W i l l i n g t o pay $10 17 16 33 W i l l i n g t o a c c e p t $10 27 3 30 ( T e s t 13) T o t a l 44 19 63 x 2 = 10.88 T e s t 14 compares t h e same i n c r e m e n t a l t a x payment t o a second compen-s a t i o n q u e s t i o n which p o s i t s t h e p o s s i b l e c l o s u r e o f Museum e x h i b i t s . I t was e x p e c t e d t h a t t h e h a r s h e r consequence o f t h e compensation a l t e r n a t i v e would r e s u l t i n s t i l l fewer a c c e p t a n c e s o f t h e o f f e r e d s e t t l e m e n t , and t h i s r e s u l t i s c l e a r l y shown i n t h e accompanying t a b l e . While s e v e n t e e n o f t h e t h i r t y -t h r e e r e s p o n d e n t s (52 p e r c e n t ) v a l u e d t h e Museum a t $10 o r more a c c o r d i n g t o t h e payment measure, 96 p e r c e n t o f t h o s e i n t e r v i e w e d (43 o f 45 p e r s o n s ) d e c l i n e d t o a c c e p t t h e o f f e r o f an equal amount as compensation. T h i s r e s u l t s 2 i n an x o f 20.90, which w i t h one Degree o f Freedom i s a g a i n s i g n i f i c a n t a t th e 5 p e r c e n t l e v e l . 95 V a l u e > $10 V a l u e < $10 T o t a l W i l l i n g t o pay $10 17 16 33 W i l l i n g t o a c c e p t $10 43 2 45 ( T e s t 14) T o t a l 60 18 78 x L = 20.90 COMPARISON OF ALTERNATIVE HYPOTHETICAL MEASURES T h i s s e c t i o n r e v i e w s t h e e m p i r i c a l r e s u l t s which have been o b t a i n e d f r o m a co m p a r i s o n o f a l t e r n a t i v e h y p o t h e t i c a l measures o f economic v a l u e based on an i n d i v i d u a l ' s w i l l i n g n e s s t o pay f o r a good and h i s o r her w i l l i n g n e s s t o a c c e p t c o m p e n s a t i o n i n r e t u r n f o r i t s l o s s . As d i s c u s s e d i n C h a p t e r s II and I I I , t h r e e major forms o f t h e e v a l u a t i o n q u e s t i o n have been employed i n p r e -v i o u s s t u d i e s o f non-market goods: a c l o s e d - e n d e d o r a l l - o r - n o n e measure, an open-ended t e c h n i q u e , and any o f a v a r i e t y o f b i d d i n g game o r a u c t i o n methods. A l t h o u g h some d i s c u s s i o n can be found i n the l i t e r a t u r e r e g a r d i n g t h e a b i l i t y o f each o f t h e s e a p p r o a c h e s t o a c c u r a t e l y d e p i c t r e s p o n d e n t s ' t r u e economic v a l u e s f o r a v a r i e t y o f non-market goods ( f o r example, S t o l l e t a l _ . , 1982 o r R a n d a l l and B r o o k s h i r e , 1978), no i n f o r m a t i o n i s a v a i l a b l e r e g a r d i n g t h e r e s u l t s o f a d i r e c t c omparison o f t h e t h r e e m e a s u r e s % T h i s s e c t i o n r e p o r t s on a s e r i e s o f v e r y s i m p l e e x p e r i m e n t s which have been d e s i g n e d t o a c h i e v e t h i s o b j e c t i v e . The framework and o r g a n i z a t i o n o f t h e s u r v e y s have a l r e a d y been e n c o u n t e r e d i n t h e p r e v i o u s s e c t i o n : each r e s -pondent i s c o n f r o n t e d w i t h a l i s t o f t e n f a m i l i a r goods o r e x p e r i e n c e s and asked t o e s t i m a t e t h e i r v a l u e f o l l o w i n g a s h o r t i n t r o d u c t o r y d e s c r i p t i o n o f t h e r u l e s under which payment o r compensation would be made. The r e s u l t s o f q u e s t i o n number 4, which i n v o l v e d t h e p u r c h a s e o r s a l e o f a l o t t e r y t i c k e t , w i l l a g a i n be a n a l y z e d ; t h e e x i s t e n c e o f t h e o t h e r n i n e q u e s t i o n s t h e r e f o r e 96 s e r v e s t o f a m i l i a r i z e t h e r e s p o n d e n t w i t h t h e e v a l u a t i o n p r o c e d u r e and t o mask t h e q u e s t i o n o f p r i n c i p a l i n t e r e s t . A l l comparisons a r e a g a i n between sub-j e c t s . I t was hoped t h a t an a n a l y s i s o f t e s t r e s u l t s would c o n t r i b u t e a d d i -t i o n a l i n f o r m a t i o n on two i m p o r t a n t i s s u e s . F i r s t , i f t h e v a l u e s h e l d by p a r t i c i p a n t s were c l e a r l y a r t i c u l a t e d and w e l l u n d e r s t o o d , t h e n a r e l a t i v e l y m i n o r change i n measurement p r o c e d u r e s \u00E2\u0080\u0094 f o r example, from a c l o s e d - e n d e d t o a b i d d i n g game a p p r o a c h \u00E2\u0080\u0094 s h o u l d have l i t t l e e f f e c t on the aver a g e p r e f e r e n c e s e x p r e s s e d by t h e sample p o p u l a t i o n . I f i t was i n s t e a d d i s c o v e r e d t h a t p r e f e r -ences were s u b s t a n t i a l l y a l t e r e d by t h e change i n q u e s t i o n form, n o t o n l y the s u b j e c t ' s s u b j e c t i v e sense o f h i s q r h e r own v a l u e s but a l s o t h e n e u t r a l i t y o f th e s u r v e y i n s t r u m e n t would be c a s t i n t o doubt. T h i s second p o i n t runs c o u n t e r t o t h e i m p l i e d a s s u m p t i o n o f any s t u d y which has c o n s i d e r e d o n l y one e v a l u a -t i o n a p p roach and m a i n t a i n s t h a t t h e r e s u l t i n g e s t i m a t e s p r o v i d e an a c c u r a t e r e f l e c t i o n o f p a r t i c i p a n t ' s t r u e v a l u e s . The r e s u l t s which have been o b t a i n e d demonstrate a s u b s t a n t i a l d i f f e r -ence i n t h e t h r e e e x p r e s s e d p r e f e r e n c e measures, and p r o v i d e p r e l i m i n a r y e v i d e n c e t h a t i n d i c a t e d v a l u e s w i l l v a r y w i t h t h e t y p e o f e v a l u a t i o n f o r m a t which i s s e l e c t e d . In a d d i t i o n , t h e r e s u l t s s u g g e s t t h a t t h i s v a r i a t i o n i s not random but i s i n s t e a d s u r p r i s i n g l y s y s t e m a t i c . In p a r t i c u l a r , t h e e s t i m a t e s w h i c h were o b t a i n e d u s i n g a b i d d i n g game a p p r o a c h were c o n s i s t e n t l y h i g h e r than t h o s e e x p r e s s e d u s i n g e i t h e r a c l o s e d - e n d e d o r open-ended t e c h n i q u e ; t h i s d i f f e r e n c e i s m a i n t a i n e d i n both t h e payment and the compensation q u e s t i o n s . The complete s e t o f s u r v e y s , as shown i n t h e Appendix ( Q u e s t i o n n a i r e s 8a t o 8g, 9a t o 9 g ) , employs two d i f f e r e n t b i d d i n g game measures ( u s i n g $0.20 and $0.40 b i d i n c r e m e n t s ) and' two d i f f e r e n t open-ended measures (one p r e s e n t -i n g a range o f v a l u e s and a n o t h e r where r e s p o n d e n t s f i l l i n t h e i r own e n t r y ) 97 a l o n g w i t h one c l o s e d - e n d e d a p p r o a c h . These r e s u l t s a r e summarized i n T a b l e 1, which shows t h e p e r c e n t a g e o f r e s p o n d e n t s e i t h e r w i l l i n g t o pay o r w i l l i n g t o a c c e p t c o m p e n s a t i o n as t h e monetary sum i n v o l v e d i s a l l o w e d t o v a r y . However, i t does not seem w o r t h w h i l e t o compare t h e r e s u l t s f o r each a l t e r n a t i v e a t each payment l e v e l . I n s t e a d , s i x examples i l l u s t r a t e t h e v a r i a t i o n which has been o b s e r v e d . T e s t s 16 and 17 ( Q u e s t i o n n a i r e s 8 f and 8 c , 9 f and 9c) These two t e s t s both compare a b i d d i n g game w i t h a c l o s e d - e n d e d ques-t i o n framework. F o r t h e payment a l t e r n a t i v e ( t e s t 1 6), the b i d d i n g game s t a r t s a t $0.20 and i n c r e a s e s by $0.40 i n t e r v a l s ; r e s p o n s e s t o t h i s q u e s t i o n a r e compared t o t h o s e f o r an a l l - o r - n o n e payment l e v e l o f $0.60. F o r the s e l l i n g a l t e r n a t i v e ( t e s t 1 7 ) , t h e b i d d i n g game a g a i n s t a r t s a t $0.20 and i n c r e a s e s by $0.40 i n t e r v a l s , w i t h t h e t e s t c o m p a r i s o n made t o a n o n - n e g o t i a b l e o f f e r o f $0.60 i n compensation. In both e x p e r i m e n t s a d i f f e r e n c e was o b s e r v e d i n r e s p o n s e s t o the two e v a l u a t i o n a p p r o a c h e s , but i n n e i t h e r c a s e was i t s t a t i s t i c a l l y s i g n i f i c a n t a t the 5 p e r c e n t l e v e l . As de m o n s t r a t e d i n t e s t 16, n i n e t e e n o f t h i r t y - f i v e p a r t i c i p a n t s i n t h e w i l l i n g n e s s t o pay b i d d i n g game (54 p e r c e n t ) v a l u e d t he t i c k e t a t more th a n $0.60 w h i l e o n l y s i x t e e n o f f o r t y - s i x p e r s o n s (35 p e r c e n t ) were w i l l i n g t o pay an equal amount on t h e b a s i s o f t h e i r r e s p o n s e s t o the c l o s e d - e n d e d q u e s t i o n . Respondents a l s o demanded a h i g h e r a v e r a g e l e v e l o f compe n s a t i o n under a b i d d i n g game a p p r o a c h . While twenty-two o f f o r t y - s i x p a r t i c i p a n t s (48 p e r c e n t ) were w i l l i n g t o a c c e p t a n o n - n e g o t i a b l e o f f e r o f $0.60 i n c o m p e n s a t i o n , o n l y t w e l v e o f f o r t y - o n e p e r s o n s (30 p e r c e n t ) engaged i n the b i d d i n g game measure o f v a l u e would a g r e e t o an e q u i v a l e n t o f f e r . TABLE 1 PERCENTAGE OF RESPONDENTS INDICATING DESIRE TO PARTICIPATE IN HYPOTHETICAL LOTTERIES B i d d i n g B i d d i n g Game - 201 Game - 40<\u00C2\u00A3 C l o s e d - E n d e d C l o s e d Range Open-Ended 01 01 01 01 01 lo to lo lo jo W i l l i n g t o pay $0.60 52 54 35 29 27 W i l l i n g t o pay $1.00 32 40 26 10 5 W i l l i n g t o a c c e p t $0.20 19 12 30 27 25 W i l l i n g t o a c c e p t $0.60 32 29 48 63 53 99 W i l l i n g t o pay $0.60, b i d d i n g game W i l l i n g t o pay $0.60, c l o s e d - e n d e d T o t a l W i l l i n g t o pay $0.60. b i d d i n g game W i l l i n g t o pay $0.60 c l o s e d - e n d e d T o t a l V a l u e > $0.60 V a l u e < $0.60 T o t a l 16 19 16 30 35 46 ( T e s t 16) 35 46 81 V a l u e > $0.60 V a l u e < $0.60 T o t a l 29 12 41 24 22 53 34 87 3.12 46 ( T e s t 17) = 3.10 In both c a s e s , i t seems l i k e l y t h a t p a r t i c i p a n t s were i n f l u e n c e d by the gaming a s p e c t o f a b i d d i n g o p p o r t u n i t y . Whereas a c l o s e d - e n d e d e v a l u a t i o n i s d i r e c t and v e r y t o the. p o i n t , any i t e r a t i v e b i d d i n g p r o c e d u r e i n t r o d u c e s an a d d i t i o n a l e lement o f gamesmanship which c o u l d prove t o be l a r g e l y i n d e p e n d e n t o f r e s p o n d e n t s ' v a l u e s a s s o c i a t e d w i t h t h e p a r t i c u l a r good under c o n s i d e r a t i o n . For example, an i n d i v i d u a l ' s e x p r e s s e d v a l u e may s i m p l y r e f l e c t h i s o r h e r d e s i r e t o \" p l a y t h e game\"--engage i n c o n s e c u t i v e b i d s - - a c e r t a i n number o f t i m e s , o r i t may r e f l e c t t h e i r p e r c e p t i o n o f a hi d d e n agenda on the p a r t o f t h e i n t e r v i e w e r by which a f o r m u l a such as \" i n i t i a l v a l u e p l u s two i t e r a t i o n s \" would y i e l d a \" c o r r e c t \" r e s p o n s e . Some e v i d e n c e f o r t h i s i n t e r p r e t a t i o n i s g a i n e d from T a b l e -1, which shows t h a t t h e f o u r t i c k e t v a l u e s o b t a i n e d w i t h a $0.40 b i d i n t e r v a l a r e a l l s l i g h t l y higher, than t h o s e d e r i v e d u s i n g a $0.20 i n c r e m e n t . 100 T e s t s 18 and 19 ( Q u e s t i o n n a i r e s 8e and 8g, 9e and 9gT '\u00E2\u0080\u00A2 These t e s t s compare b i d d i n g games u s i n g a $0.20 i n c r e m e n t w i t h i n d i v i d -u a l s ' r e s p o n s e s t o an open-ended v a l u e q u e s t i o n . In both c a s e s the v a r i a t i o n i n t h e two a p p r o a c h e s i s a g a i n .meaningful, and i n t h e same d i r e c t i o n as i n the p r e c e d i n g t e s t s : r e s p o n d e n t s a r e w i l l i n g t o pay s u b s t a n t i a l l y l e s s f o r a t i c k e t under an open-ended e v a l u a t i o n framework and a l s o t e n d t o demand s i g n i -f i c a n t l y l e s s c o m p e n s a t i o n i n r e t u r n f o r i t s l o s s . T h i s f i n d i n g i s s u r p r i s i n g , s i n c e t h e open-ended f o r m a t was e x p e c t e d t o encourage t h e h i g h e s t e x p r e s s i o n s o f v a l u e f o r both t h e payment and the s e l l i n g a l t e r n a t i v e s . P a r t o f the e x p l a n a t i o n may be found i n the c o n t e x t u a l d i f f e r e n c e s between t h i s t e s t , which asked p a r t i c i p a n t s t o v a l u e a chance to win a r a t h e r mundane good, and e a r l i e r t e s t s c o n c e r n i n g the v a l u e o f d e c l i n e s i n a i r q u a l i t y . A l o t t e r y f o r a c a l c u l a t o r i s f a m i l i a r and i n v o l v e s an ex-change between two r e a d i l y s u b s t i t u t a b l e c o m m o d i t i e s , w i t h t h e r e s u l t t h a t p a r t i c i p a n t s can e a s i l y bound t h e i r s u b j e c t i v e e s t i m a t e s o f i t s economic v a l u e . However, t h e _ t r a d e - o f f between money and e n v i r o n m e n t a l q u a l i t y i s unusual and ( f o r many p e o p l e ) h i g h l y c o n t r o v e r s i a l . As a r e s u l t , i t may be much more d i f f i c u l t t o s e t l i m i t s on the r e a l c o s t s o f t h e exchange because t h e y a r e p s y c h o l o g i c a l as w e l l as economic, an argument t o which we w i l l r e t u r n i n the f i n a l s e c t i o n o f t h i s c h a p t e r . The r e s u l t s o f t h e payment a l t e r n a t i v e a r e shown below. Whereas 32 p e r c e n t o f t h e p a r t i c i p a n t s (10 o f 31), v a l u e d t h e t i c k e t as worth a t l e a s t $1.00 u nder a b i d d i n g r e g i m e , o n l y 5 p e r c e n t o f t h e r e s p o n d e n t s (2 o f 37) a g r e e d t o pay $1.00 o r more when th e open-ended q u e s t i o n f o r m a t was employed. 2 W ith an x o f 8.26, the d i f f e r e n c e i n t h e s e two r e s p o n s e p a t t e r n s i s s i g n i f i -c a n t a t t h e 5 p e r c e n t l e v e l . 101 V a l u e > $1.00 V a l u e < $1.00 T o t a l W i l l i n g t o pay $1.00, 10 21 31 b i d d i n g game W i l l i n g t o pay $1.00, 2 35 37 ( T e s t 18) open-ended T o t a l 12 56 68 x 2 = 8.26 The r e s u l t s o f t h e two compensation q u e s t i o n s p r o v i d e a d d i t i o n a l e v i d -ence t h a t i n f a m i l i a r and r e a d i l y commensurate s i t u a t i o n s t h e b i d d i n g game form o f t h e e v a l u a t i o n q u e s t i o n w i l l t e n d t o encourage h i g h e r r e s p o n s e s than an open-ended a l t e r n a t i v e . In t h i s e x p e r i m e n t , t w e n t y - f i v e o f t h i r t y - s e v e n r e s -pondents (68 p e r c e n t ) r e f u s e d t o a c c e p t an o f f e r o f $0.60 as compensation f o r t h e i r t i c k e t when t e s t e d under a b i d d i n g game framework, w h i l e o n l y s e v e n t e e n o f t h i r t y - s i x p a r t i c i p a n t s (47 p e r c e n t ) r e f u s e d an e q u i v a l e n t s e t t l e m e n t when an open-ended t e s t was used. However, t h i s d i f f e r e n c e i s n o t s t a t i s t i c a l l y s i g n i f i c a n t a t t h e 5 p e r c e n t l e v e l . V a l u e > $0.60 V a l u e <$0.60 T o t a l W i l l i n g t o a c c e p t $0.60, 25 12 37 b i d d i n g game W i l l i n g t o a c c e p t $0.60, 17 19 36 ( T e s t 19) open-ended T o t a l 42 31 73 x 2 = 3.05 T e s t s 20 and 21 ( Q u e s t i o n n a i r e s 8d and 8 a , 9c and 9 a j These t e s t s compare the c l o s e d - e n d e d and c l o s e d - r a n g e v a l u a t i o n ap-p r o a c h e s , the f i r s t o f which asks r e s p o n d e n t s i f t h e y would a g r e e t o pay o r r e c e i v e a s i n g l e s p e c i f i e d sum o f money and t h e second which p r e s e n t s a range o f 102 f i v e d i f f e r e n t amounts between $0.20 and $1.00. There was no c l e a r a p r i o r i e x p e c t a t i o n o f d i f f e r e n c e i n t h e two f o r m a t s , s i n c e t h e d e c i s i o n t o be made i n both c a s e s i s e s s e n t i a l l y s i m i l a r . S u r p r i s i n g l y , a comparison o f t h e w i l l i n g n e s s t o pay form o f t h e ques-t i o n s d e m o n s t r a t e d a v a r i a t i o n i n the two a p p r o a c h e s . While e i g h t o f t h i r t y r e s p o n d e n t s (27 p e r c e n t ) t o t h e a l l - o r - n o n e q u e s t i o n a g r e e d t o pay a t l e a s t $1.00 f o r a l o t t e r y t i c k e t , o n l y 10 p e r c e n t (5 o f 49) o f t h o s e g i v e n a c h o i c e 2 o f v a l u e s f e l t t h a t t h e o p p o r t u n i t y was worth as much. However, the x v a l u e f o r t h e d i s p a r i t y o f 3.76 i s not s t a t i s t i c a l l y s i g n i f i c a n t a t the 5 p e r c e n t l e v e l . One e x p l a n a t i o n f o r t h e v a r i a t i o n i s t h a t p a r t i c i p a n t s i n the c l o s e d -range e x p e r i m e n t might have been i n f l u e n c e d t o s t a t e l o w e r v a l u e s by the f a c t t h a t $1.00 was an e n d p o i n t o f t h e s c a l e and the m i d p o i n t o f t h e f i v e p o s s i b l e v a l u e s was o n l y $0.60. Yet t h e e v i d e n c e f o r t h i s i n t e r p r e t a t i o n i s weak: as shown i n T a b l e 1, t h e v a r i a t i o n between c l o s e d - e n d e d and c l o s e d - r a n g e payment q u e s t i o n s was s m a l l e r a t a $0.60 l e v e l but the d i f f e r e n c e i n the compensation a l t e r n a t i v e s was l a r g e r a t the $0.60 m i d p o i n t o f t h e range than a t $0.20. V a l u e > $1.00 V a l u e < $1.00 T o t a l W i l l i n g t o pay $1.00, 8 22 30 c l o s e d - e n d e d W i l l i n g t o pay $1.00, - 5 44 49 ( T e s t 20) c l o s e d - r a n g e T o t a l 13 66 79 x 2 = 3.76 The w i l l i n g n e s s t o s e l l forms o f t h e two q u e s t i o n s a l s o produced d i f f e r -e n t a v e r a g e v a l u e s , but i n t h i s c a s e t h e r e s u l t s a r e l e s s r e l i a b l e . W h ile . j u s t o v e r o n e - h a l f o f t h o s e p a r t i c i p a t i n g i n t h e c l o s e d - e n d e d e x p e r i m e n t (24 o f 46, o r 52 p e r c e n t ) s a i d t h a t t h e t i c k e t was worth a t l e a s t $0.60, t h i r t y o f 103 the f o r t y - e i g h t p e r s o n s (72 p e r c e n t o f t h e sample) g i v e n a c l o s e d - r a n g e ques-t i o n n a i r e i n d i c a t e d t h a t the t i c k e t was worth l e s s t h a n $0.60 t o them. With 2 an x o f 1.99, t h e d i f f e r e n c e i s not s i g n i f i c a n t a t the 5 p e r c e n t l e v e l . V a l u e > $0.60 V a l u e < $0.60 T o t a l W i l l i n g t o a c c e p t $0.60, 24 22 46 c l o s e d - e n d e d W i l l i n g t o a c c e p t $0.60, 18 30 48 ( T e s t 21) c l o s e d - r a n g e T o t a l 42 52 94 x 2 = 1.99 COMPARISONS OF HYPOTHETICAL AND ACTUAL RESPONSES In t h e f i r s t s e c t i o n o f t h i s c h a p t e r I have p r e s e n t e d t h e r e s u l t s o f a number o f e x p e r i m e n t s which d e m o n s t r a t e t h a t p e o p l e w i l l g e n e r a l l y r e q u i r e more comp e n s a t i o n t o w i l l i n g l y g i v e up a good c o n s i d e r e d t o be p a r t o f t h e i r e n t i t l e m e n t than t h e y would pay t o p u r c h a s e o r t o m a i n t a i n i t . A l a r g e number o f o t h e r h y p o t h e t i c a l s u r v e y s , some o f which have been d i s c u s s e d i n the p r e -c e d i n g c h a p t e r s , have a l s o r e a c h e d a s i m i l a r c o n c l u s i o n . However, the f a c t t h a t most s t u d i e s have employed q u e s t i o n s based on h y p o t h e t i c a l s c e n a r i o s has s e r v e d as a m a j o r s o u r c e o f c r i t i c i s m and p r o v i d e d a c o n v e n i e n t avenue by which c o n v e n t i o n a l t h e o r y \u00E2\u0080\u0094 w h i c h m a i n t a i n s t h a t t h e two approaches s h o u l d y i e l d e q u i v a l e n t measures o f v a l u e \u00E2\u0080\u0094 c o u l d e s c a p e a c o n f r o n t a t i o n w i t h c o n f l i c t i n g e m p i r i c a l e v i d e n c e . In o r d e r t o t e s t t h e r o b u s t n e s s o f v a r i a t i o n s i n payment and compensa-t i o n measures o f v a l u e , two modest e x p e r i m e n t s have been d e v i s e d which d i r e c t l y compare t h e r e s u l t s o f h y p o t h e t i c a l and a c t u a l t r a n s a c t i o n s . The b a s i c form o f t h e s e e x p e r i m e n t s c l o s e l y f o l l o w s e a r l i e r t e s t s d e v e l o p e d by K n e t s c h and S i n d e n (1982). Both common sense l o g i s t i c s and b u d g e t a r y c o n s t r a i n t s s u g g e s t e d 104 t h a t a l o t t e r y would p r o v i d e a c o n v e n i e n t a s s e t f o r which p r i c e s c o u l d e a s i l y be v a r i e d and income o r w e a l t h e f f e c t s would c l e a r l y remain n e g l i g i b l e . So l o n g as a l l f o u r t e s t s i t u a t i o n s \u00E2\u0080\u0094 h y p o t h e t i c a l and a c t u a l , p u r c h a s e and com-p e n s a t i o n \u00E2\u0080\u0094 i n v o l v e the same o p p o r t u n i t y , p a r t i c i p a n t s ' b e h a v i o r toward gamb-l i n g s h o u l d a l s o be s y m e t r i c between t h e c h o i c e s and t h e r e f o r e p r e s e r v e the more g e n e r a l a p p l i c a b i l i t y o f t h e r e s u l t s . The f i r s t s e r i e s o f h y p o t h e t i c a l e x p e r i m e n t s , which o f f e r s t u d e n t s t h e c h o i c e o f p u r c h a s i n g o r t r a d i n g a l o t t e r y t i c k e t which w i l l g i v e them a one i n t h i r t y chance o f w i n n i n g an e l e c t r o n i c c a l c u l a t o r , has a l r e a d y been d i s c u s s e d ; r e s u l t s from both t h e c l o s e d - e n d e d and b i d d i n g game e x p e r i m e n t s w i l l be r e v i e w e d . A second s e t o f q u e s t i o n n a i r e s a l s o a sked p a r t i c i p a n t s t o v a l u e t e n goods o r a c t i v i t i e s but i n t h i s c a s e t h e l o t t e r y p r o v i d e d a one i n f o r t y chance t o win a b o t t l e o f i m p o r t e d champagne. A range o f v a l u e s between $0.20 and $1.00 was p r o v i d e d , and r e s p o n d e n t s were asked t o c i r c l e the v a l u e which b e s t r e p r e s e n t e d e i t h e r t h e i r maximum w i l l i n g n e s s t o pay f o r a t i c k e t o r t h e minimum p r i c e a t which t h e y would a g r e e t o s e l l a t i c k e t . P a r t i c i p a n t s i n t h e a c t u a l e x p e r i m e n t s were randomly s e l e c t e d (depen-d i n g on whether t h e i r t i c k e t number was even o r odd) t o be i n one o f two g r o u p s . Each s t u d e n t i n t h e f i r s t s e t was g i v e n a t i c k e t and t o l d t h a t t h e y had t h e o p t i o n o f e i t h e r p a y i n g t o keep i t and p a r t i c i p a t i n g i n the l o t t e r y o r r e f u s i n g t o pay and t h e r e b y l o s i n g t h e chance t o t a k e p a r t . S t u d e n t s i n t h e second group, who c o u l d p a r t i c i p a t e i n the l o t t e r y w i t h o u t p a y i n g , were o f f e r e d money i f t h e y would g i v e up t h e i r t i c k e t and t h e r e b y l o s e the chance t o be i n t h e l o t t e r y . P a r t i c i p a n t s were i n t e r v i e w e d e i t h e r i n d i v i d u a l l y o r i n s m a l l g r o u p s , and were no t i n f o r m e d t h a t c o mparisons o f payment and compen-s a t i o n o r a c t u a l and h y p o t h e t i c a l a p p r o a c h e s were p l a n n e d . The c a s h t r a n s a c -t i o n s i n t h e c a l c u l a t o r r a f f l e were made a t t h r e e l e v e l s o f p a y m e n t \u00E2\u0080\u0094 $ 0 . 2 0 , 105 $0.60 and $1.00--under both a b i d d i n g game and a c l o s e d - e n d e d q u e s t i o n f o r m a t ; open-ended t e s t s were not a t t e m p t e d f o r o b v i o u s b u d g e t a r y r e a s o n s . A c t u a l payments i n the champagne e x p e r i m e n t were a l l a t a n o n - n e g o t i a b l e l e v e l o f $0.50. The r e s u l t s o f t h e s e e x p e r i m e n t s add t o t h e e v i d e n c e t h a t d i s p a r i t i e s i n r e s p o n s e s t o b u y i n g and s e l l i n g measures o f v a l u e a r e i n d i c a t i v e o f s i g n i -f i c a n t d i f f e r e n c e s i n p r e f e r e n c e s and n o t m e r e l y t h e r e s u l t o f c o n t r i v e d h y p o t h e t i c a l t e s t s i t u a t i o n s . T h i s e v i d e n c e t a k e s two forms. F i r s t , r e s p o n s e s t o t h e a c t u a l e x p e r i m e n t s d e m o n s t r a t e t h a t t h e v a l u e p l a c e d on the t i c k e t v a r i e s s u b s t a n t i a l l y a c c o r d i n g t o whether p a r t i c i p a n t s a r e asked t o pay money i n o r d e r t o p u r c h a s e i t o r t o a c c e p t money i n r e t u r n f o r g i v i n g i t up. S e c o n d l y , t h e a c t u a l b e h a v i o r o f p a r t i c i p a n t s i n t e s t s i n v o l v i n g a c a s h t r a n s -a c t i o n i s s u r p r i s i n g l y s i m i l a r t o t h e p r e f e r e n c e s which have been i n d i c a t e d by p a r t i c i p a n t s i n the h y p o t h e t i c a l e x p e r i m e n t s . A summary o f s u r v e y r e s p o n s e s i s p r e s e n t e d i n T a b l e 2, which shows the p e r c e n t a g e o f r e s p o n d e n t s i n d i c a t i n g t h e i r d e s i r e t o p a r t i c i p a t e i n e i t h e r t h e h y p o t h e t i c a l o r t h e r e a l l o t t e r i e s under both e v a l u a t i o n measures. These r e s u l t s a r e s i m i l a r t o t h o s e r e p o r t e d by Knetsch and S i n d e n (1982) and s t r o n g l y s u g g e s t t h a t r e s p o n s e s t o h y p o t h e t i -c a l q u e s t i o n s can a t l e a s t i n some c a s e s p r o v i d e r e a s o n a b l y c l o s e approxima-t i o n s o f r e s p o n d e n t s ' a c t u a l b e h a v i o r . T e s t s 23, 24 and 25 ( Q u e s t i o n n a i r e s 8c and 9c) These e x p e r i m e n t s compare t h e r e s u l t s o f h y p o t h e t i c a l and a c t u a l t e s t s c e n a r i o s which were c o n d u c t e d u s i n g a c l o s e d - e n d e d q u e s t i o n f o r m a t . The s e l e c t e d l e v e l o f payment was $0.60, w i t h one group o f p a r t i c i p a n t s a sked i f t h e y would a g r e e t o pay t h i s sum as the e n t r a n c e p r i c e t o a l o t t e r y and a second group asked i f t h e y would a c c e p t an equal amount as compensation f o r TABLE 2 PERCENTAGE OF RESPONDENTS INDICATING DESIRE TO PARTICIPATE IN ACTUAL LOTTERIES W i l l i n g n e s s t o Pay W i l l i n g n e s s t o A c c e p t L e v e l o f Q u e s t i o n H y p o t h e t i c a l A c t u a l H y p o t h e t i c a l A c t u a l L o t t e r y P r i z e Payment Format % % % - % C a l c u l a t o r $0.20 B i d d i n g Game Yl 9 Closed-Ended 68 68 30 23 $0.60 B i d d i n g Game 54 56 29 26 Closed-Ended 35 27 48 42 $1.00 B i d d i n g Game 40 31 Closed-Ended 26 21 50 53 Champagne $0.50 Closed-Ended 27 29 39 44 107 the l o s s o f t h e i r t i c k e t . In both c a s e s t h e p r i z e was a c a l c u l a t o r o f un-s p e c i f i e d monetary v a l u e ; p a r t i c i p a n t s were i n f o r m e d t h a t t h e p r i z e was on hand and t h a t a winner would be chosen w i t h i n a few minutes (as soon as a l l t h i r t y t i c k e t s had been d i s t r i b u t e d ) . The r e s p o n s e s i n t h e a c t u a l r a f f l e c l o s e l y r e p l i c a t e t h e r e s u l t s o f t h e h y p o t h e t i c a l e x p e r i m e n t . P a r t i c i p a n t s ' w i l l i n g n e s s t o pay f o r a l o t t e r y t i c k e t was a g a i n compared w i t h t h e i r w i l l i n g n e s s t o a c c e p t compensation f o r i t s l o s s . I f t h e two bases f o r e v a l u a t i o n a r e e q u i v a l e n t , as s u g g e s t e d by c o n v e n t i o n a l economic t h e o r y , then t he same p r o p o r t i o n o f i n d i v i d u a l s s h o u l d d e c i d e t o pay $0.60 t o a c q u i r e a t i c k e t as would a g r e e t o g i v e i t up f o r an equal c a s h s e t t l e m e n t . However, o n l y n i n e o f t h e t h i r t y - t h r e e p e r s o n s t e s t e d (27 p e r c e n t ) a c t u a l l y made t h e $0.60 payment r e q u i r e d t o t a k e p a r t i n the l o t t e r y w h i l e e i g h t e e n o f t h i r t y - o n e p e r s o n s (58 p e r c e n t ) d e m o n s t r a t e d t h a t a t i c k e t was worth more than t h i s by t h e i r r e f u s a l t o t r a d e i t f o r $0.60 i n 2 c a s h . The x f o r t h i s d i f f e r e n c e i s 6.16, which i s s i g n i f i c a n t a t t h e 5 p e r -c e n t l e v e l and p r o v i d e s s t r o n g s u p p o r t i n g e v i d e n c e t h a t t h e o b s e r v e d d i s p a r i t y i n r e s p o n s e s t o the two measures i s r e l i a b l e . V a l u e > $0.60 V a l u e < $0.60 T o t a l W i l l i n g t o pay $0.60 9 24 33 W i l l i n g t o a c c e p t $0.60 18 13 31 ( T e s t 23) T o t a l 27 37 64 x 2 = 6.16 The f a c t t h a t p u r c h a s e and s e l l i n g p r i c e s a r e s i g n i f i c a n t l y d i f f e r e n t f o r b o t h t h e a c t u a l and h y p o t h e t i c a l e x p e r i m e n t s does n o t n e c e s s a r i l y i m p l y t h a t p a r t i c i p a n t s ' r e s p o n s e s t o a c t u a l and h y p o t h e t i c a l s i t u a t i o n s a r e s i m i l a r . T e s t s 24 and 25 t h e r e f o r e compared t h e h y p o t h e t i c a l and a c t u a l r e s p o n s e s which 108 have been o b t a i n e d t o the payment and s e l l i n g e v a l u a t i o n a l t e r n a t i v e s . W i l l i n g to- pay, h y p o t h e t i c a l W i l l i n g t o pay, a c t u a l T o t a l V a l u e > $0.60 V a l u e < $0.60 T o t a l 16 30 24 46 33 ( T e s t 24) 25 54 79 W i l l i n g t o a c c e p t , h y p o t h e t i c a l W i l l i n g t o a c c e p t , a c t u a l T o t a l V a l u e > $0.60 V a l u e <. $0.60 T o t a l 24 22 46 18 13 42 35 77 .47 31 ( T e s t 25) .26 With x v a l u e s i n each c a s e o f s u b s t a n t i a l l y l e s s than one, the C h i - S q u a r e t e s t s c o n f i r m the v i s u a l e x p e c t a t i o n t h a t t h e r e i s no s t a t i s t i c a l d i f f e r e n c e i n v a l u e s e x p r e s s e d by t h o s e p a r t i c i p a t i n g i n t h e h y p o t h e t i c a l and the a c t u a l e x p e r i m e n t s . T e s t s 26, 27 and 28 ( Q u e s t i o n n a i r e s 8 f and 9 f ) T h i s s e t o f e x p e r i m e n t s compare i n d i v i d u a l s ' r e s p o n s e s t o h y p o t h e t i c a l and a c t u a l t e s t s i t u a t i o n s i n which a b i d d i n g game was used to e s t i m a t e v a l u e s . Both t h e payment and t h e c ompensation t e s t s employed a s t a r t i n g b i d o f $0.20 and t h e r e s u l t s show t h e p r o p o r t i o n o f s t u d e n t s w i l l i n g t o p u r c h a s e a t i c k e t o r a c c e p t c ompensation f o r i t s l o s s a t a payment l e v e l o f $0.60. Responses t o t h e payment and s e l l i n g measurement a l t e r n a t i v e s a r e p r e s e n t e d below. F o r t y - f o u r p e r c e n t (21 o f 48) o f t h o s e p a r t i c i p a t i n g i n the w i l l i n g n e s s t o pay e x p e r i m e n t v a l u e d t h e l o t t e r y t i c k e t a t l e s s than $0.60, 109 whereas o n l y 26 p e r c e n t (14 o f 54) o f t h o s e t e s t e d were w i l l i n g t o a c c e p t an 2 e q u i v a l e n t sum i n compensation f o r i t s l o s s . With an x o f 3.54, t h i s d i f f e r -ence i s not s t a t i s t i c a l l y s i g n i f i c a n t a t t h e 5 p e r c e n t l e v e l . V a l u e > $0.60 V a l u e < $0.60 T o t a l W i l l i n g t o pay $0.60 27 21 48 W i l l i n g t o a c c e p t $0.60 40 14 54^ ( T e s t 26) T o t a l 67 35 102 x 2 = 3.54 T e s t s 27 and 28 i n v e s t i g a t e whether i t i s s i g n i f i c a n t t h a t p a r t i c i -p a n ts made o r a c c e p t e d a c t u a l c a s h payments i n o r d e r t o buy o r s e l l a r e a l l o t t e r y t i c k e t o r s i m p l y i n d i c a t e d t h e i r p r e f e r e n c e s i n r e f e r e n c e t o a hypo-t h e t i c a l exchange. T e s t 27, which compares p a r t i c i p a n t s ' h y p o t h e t i c a l and a c t u a l payments f o r a t i c k e t , and T e s t 28, which compares t h e i r w i l l i n g n e s s t o a c c e p t h y p o t h e t i c a l and r e a l c a s h s e t t l e m e n t s i n exchange f o r the oppor-t u n i t y t o p a r t i c i p a t e i n t h e l o t t e r y , s u g g e s t t h a t i t i s n o t . I n s t e a d , the 2 i n s i g n i f i c a n t x v a l u e s o b t a i n e d i n t h e two t e s t s s u p p o r t t h e a c c e p t a n c e o f t h e n u l l h y p o t h e s i s t h a t no d i f f e r e n c e e x i s t s i n t h e r e s p o n s e s t o r e a l and t o h y p o t h e t i c a l q u e s t i o n f o r m a t s . V a l u e > $0.60 V a l u e < $0.60 T o t a l W i l l i n g t o pay, 19 16 35 h y p o t h e t i c a l W i l l i n g t o pay, 27 21 48 ( T e s t 27) a c t u a l T o t a l 46 37 83 x 2 = .03 n o V a l u e > $0.60 V a l u e $0.60 T o t a l W i l l i n g t o a c c e p t , h y p o t h e t i c a l 29 12 41 W i l l i n g t o a c c e p t , a c t u a l 40 14 54 ( T e s t 28) T o t a l 69 26 95 x 2 = .14 T e s t s 29, 30 and 31 ( Q u e s t i o n n a i r e s 10a and 10b) These t h r e e t e s t s compare s t u d e n t s ' r e a c t i o n s t o a l o t t e r y i n which t h e p r i z e was a b o t t l e o f i m p o r t e d champagne. As i n the e x p e r i m e n t s which used a c a l c u l a t o r , p a r t i c i p a n t s were not g i v e n any f u r t h e r i n f o r m a t i o n r e g a r d -i n g t h e t y p e o r v a l u e o f t h e champagne but t h e y were t o l d t h a t the p r i z e would be awarded m o m e n t a r i l y . A l t h o u g h the e x p e c t e d v a l u e o f a t i c k e t was i n t h i s c a s e s l i g h t l y l o w e r , t h e d i f f e r e n c e i n t h e e x p e r i m e n t a l s i t u a t i o n s was s m a l l and t h e r e was no r e a s o n t o a n t i c i p a t e major d e v i a t i o n s from t h e e a r l i e r r a f f l e r e s u l t s . The comparison o f t h e v a l u e p l a c e d on a t i c k e t by s t u d e n t s r e q u i r e d t o pay f o r i t and o t h e r s o f f e r e d compensation i f t h e y would g i v e i t up once a g a i n d e m o n s t r a t e s t h a t an e x p e c t a t i o n o f e q u i v a l e n c e i s not w a r r a n t e d . Whereas n i n e t e e n o f t h i r t y - f o u r p a r t i c i p a n t s (56 p e r c e n t o f t h o s e i n t e r v i e w e d ) were u n w i l l i n g t o a c c e p t a c a s h o f f e r o f $0.50 i n exchange f o r t h e i r t i c k e t , o n l y n i n e o f t h i r t y - o n e p e r s o n s (29 p e r c e n t ) chose t o pay t h i s same amount i n o r d e r t o o b t a i n a t i c k e t . The d i f f e r e n c e i n r e s p o n s e s t o t h e two e v a l u a t i o n 2 measures shows an x o f 4.86, which w i t h one Degree o f Freedom i s s i g n i f i c a n t a t t h e 5 p e r c e n t l e v e l . I l l W i l l i n g t o pay $0.50 W i l l i n g t o a c c e p t $0.50 T o t a l V a l u e > $0.50 V a l u e < $0.50 T o t a l 9 22 31 19 15 34 28 37 65 ( T e s t 29) = 4.86 A c t u a l r e s p o n s e s t o both t h e payment and compensation a l t e r n a t i v e s were v e r y s i m i l a r t o t h e answers which had p r e v i o u s l y been o b t a i n e d t o the companion h y p o t h e t i c a l q u e s t i o n s . The v a l u e s d e m o n s t r a t e d by p a r t i c i p a n t s ' a c t u a l and h y p o t h e t i c a l w i l l i n g n e s s t o pay were n e a r l y i d e n t i c a l , and the v a r i a t i o n i n r e s p o n s e s t o the compensation o f f e r was s t a t i s t i c a l l y i n s i g n i f i -c a n t . With a h i g h d e g r e e o f c o n f i d e n c e , t h e s e r e s u l t s a r g u e t h a t h y p o t h e t i c a l s c e n a r i o s can p r o v i d e an e x t r e m e l y c l o s e e s t i m a t e o f i n d i v i d u a l s ' a c t u a l ex-p r e s s e d v a l u e s and p r o v i d e e v i d e n c e f o r a p r e s u m p t i o n o f t r u s t i n the r e s u l t s o f c a r e f u l l y d e s i g n e d h y p o t h e t i c a l s u r v e y s . W i l l i n g t o pay, h y p o t h e t i c a l W i l l i n g t o pay, a c t u a l T o t a l V a l u e > $0.50 V a l u e < $0.50 T o t a l 9 24 33 22 31 ( T e s t 30) 18 46 64 .03 W i l l i n g t o a c c e p t , h y p o t h e t i c a l W i l l i n g t o a c c e p t , a c t u a l T o t a l V a l u e > $0.50 V a l u e < $0.50 T o t a l 17 11 28 19 36 15 26 34 ( T e s t 31) 62 x = .12 112 INFLUENCE OF FRAMING EFFECTS D e c i s i o n problems can be d e f i n e d i n terms o f t h e a c t s o r o p t i o n s between which a c h o i c e must be made, t h e s e t o f p o s s i b l e outcomes o r c o n s e -quences t h a t might a r i s e , and the c o n t i n g e n c i e s o r c o n d i t i o n a l p r o b a b i l i t i e s which r e l a t e a c t s and outcomes. The d e c i s i o n - m a k e r ' s c o n c e p t i o n o f t h e o p t i o n s , outcomes and p r o b a b i l i t i e s a s s o c i a t e d w i t h a p a r t i c u l a r c h o i c e c on-s t i t u t e s h i s o r h e r d e c i s i o n frame. The p a r t i c u l a r s t r u c t u r e o r frame which i s employed i n t h e e v a l u a t i o n o r any d e c i s i o n i s i n p a r t d e t e r m i n e d by s o c i a l norms and p e r s o n a l c h a r a c t e r i s t i c s o f t h e d e c i s i o n - m a k e r and i n p a r t c o n t r o l -l e d by t h e p a r t i c u l a r way i n which the problem i s f o r m u l a t e d . U t i l i t y t h e o r y , which has p r o v i d e d t h e b a s i s f o r most d e s c r i p t i v e and n o r m a t i v e t h e o r i e s o f d e c i s i o n making, has l i t t l e t o say about the r e l a t i o n o f p a r t i c u l a r d e c i s i o n frames t o p r e f e r e n c e s . In f a c t , a number o f d i f f e r e n t r e s e a r c h e r s have no t e d t h a t changes i n p r e s e n t a t i o n which a r e i r r e l e v a n t from t h e s t a n d p o i n t o f u t i l i t y t h e o r y can r e s u l t i n d r a m a t i c a l t e r a t i o n s i n i n d i v i d u a l s ' e x p r e s s e d v a l u e s ( S l o v i c , e t a l _ . , f o r t h c o m i n g ) . S i n c e most ques-t i o n s can be framed i n more than one way, i t f o l l o w s t h a t s u b t l e changes i n t h e way i n which t r a d e - o f f s a r e p h r a s e d may c o n s c i o u s l y o r u n i n t e n t i o n a l l y d i s t o r t s u r v e y measures o f p e o p l e s ' v a l u e s . I t t h e r e f o r e becomes i m p o r t a n t t o b e t t e r u n d e r s t a n d b o t h t h e i n f l u e n c e o f p a r t i c u l a r problem d e s c r i p t i o n s i n s u b s e q u e n t d e c i s i o n s and t h e mechanisms by which p e o p l e might adapt p a r t i c u -l a r d e c i s i o n f r a m e s . The s e c t i o n r e v i e w s a s e r i e s o f e x p e r i m e n t s which i n v e s t i g a t e t h e i n f l u e n c e o f a l t e r n a t i v e d e c i s i o n s t r u c t u r e s on e x p r e s s e d p r e f e r e n c e measures o f e n v i r o n m e n t a l q u a l i t y . The i n t e r p r e t a t i o n o f t e s t r e s u l t s r e l i e s h e a v i l y on t h e a n a l y s i s o f d e c i s i o n frames which i s p r o v i d e d by Kahneman and T v e r s k y ' s p r o s p e c t t h e o r y (Kahneman and T v e r s k y , 1979; T v e r s k y and Kahneman, 1981). 113 T h i s a p p r o a c h , d i s c u s s e d i n C h a p t e r IV, p r o v i d e s the b a s i s f o r an e x p l a n a t i o n o f a number o f s h i f t s i n p r e f e r e n c e s t h a t a r e n o t p r e d i c t e d by u t i l i t y t h e o r y . Most i m p o r t a n t l y , p r o s p e c t t h e o r y s t r e s s e s the v u l n e r a b i l i t y o f p e o p l e s ' v a l u e s and f e e l i n g s t o d i f f e r e n t e l i c i t a t i o n methods, and emphasizes t h e d i f f i c u l t i e s i n v o l v e d i n any attempt t o a c c u r a t e l y t r a n s l a t e i n d i v i d u a l s ' sub-j e c t i v e f e e l i n g s i n t o commensurate e x p r e s s i o n s o f v a l u e . T h r e e v e r s i o n s o f a payment q u e s t i o n and two v e r s i o n s o f a compensa-t i o n q u e s t i o n have been t e s t e d . A l l r e s p o n d e n t s r e c e i v e d the same i n t r o d u c -t i o n t o s t u d y o b j e c t i v e s and a s h o r t d e s c r i p t i o n o f p o t e n t i a l t r a d e - o f f s between i n c r e a s e d i n d u s t r i a l a c t i v i t y and the q u a l i t y o f t h e l o c a l e n v i r o n m e n t . P a r t i c i p a n t s i n t h e b a s i c payment e x p e r i m e n t were next asked i f t h e y would a g r e e t o pay an annual \" e n v i r o n m e n t a l q u a l i t y t a x o f $10.00 i n o r d e r t o p r e v e n t a d e c l i n e i n a v e r a g e a r e a a i r q u a l i t y l e v e l s . \" I f t h e y responded a f f i r m a t i v e l y , t h e y were asked whether t h e y would be w i l l i n g t o pay $25.00; i f t h e y responded n e g a t i v e l y , t h e y were\" asked whether t h e y would be w i l l i n g t o pay an annual t a x o f $5.00. P a r t i c i p a n t s i n the b a s i c compensation e x p e r i m e n t were asked i f t h e y would a c c e p t a d e c r e a s e i n annual t a x e s i f as a r e s u l t a r e a a i r q u a l i t y l e v e l s would d e c l i n e ; payment o f f e r s o f $10.00, f o l l o w e d by $5.00 o r $25.00, were a g a i n employed. T e s t s 32 and 33 ( Q u e s t i o n n a i r e s l a and l b , 2a and 2b) T h i s t e s t compares t h e b a s i c w i l l i n g n e s s t o pay f o r m a t w i t h a second v e r s i o n which asks t h e same q u e s t i o n but r e v e r s e s t h e o r d e r o f the e n v i r o n -mental q u a l i t y and payment c l a u s e s . In both c a s e s , the a c t i v i t y i t s e l f ( a s s i g n i n g monetary payments t o e n v i r o n m e n t a l q u a l i t y ) was u n f a m i l i a r and sub-j e c t s were a b l e t o l o o k a t and r e p e a t e d l y r e f e r t o t h e i r p e r s o n a l w r i t t e n copy o f t h e q u e s t i o n . 114 The two e v a l u a t i o n p r o c e d u r e s were e x p e c t e d t o be e q u i v a l e n t , p a r t i c u -l a r l y s i n c e a t the $25.00 l e v e l o f payment p a r t i c i p a n t s were one s t e p removed from t h e d i f f e r e n c e i n d e c i s i o n frames. However, f o r t y - o n e o f the f i f t y - s i x p a r t i c i p a n t s ( o r 73 p e r c e n t o f t h o s e sampled) were w i l l i n g t o pay a t l e a s t $25.00 t o p r e v e n t a d e c l i n e i n a i r q u a l i t y l e v e l s when the t a x c l a u s e p r e c e d e d t h e d e s c r i p t i o n o f t h e e n v i r o n m e n t a l change, w h i l e o n l y f o r t y - f i v e o f s e v e n t y -t h r e e r e s p o n d e n t s ( o r 62 p e r c e n t ) were w i l l i n g t o pay $25.00 when the o r d e r o f 2 t h e c l a u s e s was r e v e r s e d . With an x o f 1.94, t h i s d i f f e r e n c e i s not s t a t i s -t i c a l l y s i g n i f i c a n t a t t h e 5 p e r c e n t l e v e l , b u t even so i t i s t r o u b l i n g t h a t such a minor and t r a n s p a r e n t a l t e r a t i o n c o u l d r e s u l t i n d i f f e r e n t a v e r a g e r e s p o n s e s . V a l u e > $25 V a l u e < $25 T o t a l W i l l i n g t o pay $25, 41 15 56 b a s i c W i l l i n g t o pay $25, 45 28 73 ( T e s t 32) r e v e r s e d T o t a l 86 43 129 x 2 = 1.94 The same m a n i p u l a t i o n o f the compensation q u e s t i o n was a l s o t e s t e d , and t h e r e s u l t s i n t h i s c a s e p r e s e n t a much s t r o n g e r argument. Only f o u r o f t h e f i f t y - t w o p e r s o n s ( o r 8 p e r c e n t ) a n s w e r i n g t h e b a s i c compensation q u e s t i o n ( w i t h a t a x c l a u s e f i r s t ) were w i l l i n g t o a c c e p t $25.00 i n r e t u r n f o r a d e c l i n e i n a i r q u a l i t y , but f o u r t e e n o f t h e f i f t y - e i g h t r e s p o n d e n t s (24 p e r c e n t ) 2 t o t h e r e v e r s e d f o r m a t a c c e p t e d an i d e n t i c a l o f f e r . The x f o r t h e s e r e s u l t s , based on a 2x2 c o n t i n g e n c y t a b l e w i t h one Degree o f Freedom, i s 5.40, which i s s i g n i f i c a n t a t the 5 p e r c e n t l e v e l . 115 V a l u e > $25 V a l u e < $25 T o t a l W i l l i n g t o a c c e p t $25, b a s i c 48 4 52 W i l l i n g t o a c c e p t $25, r e v e r s e d 44 14 58 ( T e s t 33) T o t a l 92 18 110 x 2 = 5.40 One p o s s i b l e e x p l a n a t i o n o f t h e d i f f e r e n c e i s t h a t t h e s e r e s p o n s e s might r e f l e c t a v a r i a n t o f a n c h o r i n g and r e c e n c y b i a s e s i n which the l a s t i n f o r m a t i o n which i s p r e s e n t e d i s w e i g h t e d most h e a v i l y i n an i n d i v i d u a l ' s e v a l u a t i o n . A c c o r d i n g t o t h i s i n t e r p r e t a t i o n , r e s p o n d e n t s who a r e l e f t t h i n k -i n g about t h e e m o t i o n a l l y - c h a r g e d i s s u e o f e n v i r o n m e n t a l q u a l i t y (as i n t h e b a s i c q u e s t i o n s ) w i l l on a v e r a g e demonstrate a h i g h e r v a l u e than w i l l t h o s e p a r t i c i p a n t s who (as i n both r e v e r s a l s ) a r e l e f t c o n s i d e r i n g r e l a t i v e l y m i n o r changes i n t h e i r t a x b i l l . P a r t i c i p a n t s i n the payment a l t e r n a t i v e would t h e r e f o r e have matched t h e i r r e s p o n s e w i t h e i t h e r an o b l i g a t i o n t o pay ( i n the r e v e r s e d q u e s t i o n ) o r an o p p o r t u n i t y t o enhance e n v i r o n m e n t a l q u a l i t y ; s i n c e t h e l a t t e r i s more a t t r a c t i v e , e x p r e s s i o n s o f w i l l i n g n e s s t o pay a r e h i g h e r u s i n g t h e b a s i c q u e s t i o n . For p a r t i c i p a n t s i n t h e compensation a l t e r n a t i v e , the most r e c e n t i n f o r m a t i o n would have been e i t h e r the o f f e r o f a t a x s a v i n g ( i n t h e r e v e r s e d f o r m a t ) o r t h e p r o s p e c t o f a d e c l i n e i n e n v i r o n m e n t a l q u a l i t y : g i v e n the r e l a t i v e l y s m a l l amount o f the b r i b e and the r e s p o n s i b i l i t y a s s o c i a t e d w i t h p e r m i t t i n g e n v i r o n m e n t a l d e g r a d a t i o n , fewer p a r t i c i p a n t s a g r e e d t o a c c e p t compensation under the b a s i c q u e s t i o n s t r u c t u r e . T e s t 34 ( Q u e s t i o n n a i r e s l a and l c ) T h i s t e s t compares the b a s i c w i l l i n g n e s s t o pay q u e s t i o n w i t h a t h i r d v e r s i o n which a s k e d i n d i v i d u a l s i f t h e y were \" w i l l i n g t o pay an annual t a x o f 116 $10.00 i n o r d e r t o m a i n t a i n p r e s e n t a r e a a i r q u a l i t y l e v e l s \" (emphasis added). Both v a r i a n t s a s k e d s u b j e c t s t o weigh competing b e n e f i t s and c o s t s by compar-i n g a h y p o t h e t i c a l monetary payment and a p o t e n t i a l change i n e n v i r o n m e n t a l q u a l i t y . I f p o t e n t i a l outcomes a r e e v a l u a t e d i n terms o f f i n a l a s s e t s t a t e s , as s u g g e s t e d by e x p e c t e d u t i l i t y t h e o r y , t h e r e would be no r e a s o n t o s u s p e c t a s y s t e m a t i c d i f f e r e n c e i n t h e s e f o r m a l l y e q u i v a l e n t v e r s i o n s o f the payment q u e s t i o n . The a l t e r n a t i v e model o f p r o s p e c t t h e o r y (Kahneman and T v e r s k y , 1979) i n d i c a t e s t h a t e x p r e s s e d v a l u e s s h o u l d be h i g h e r f o r t h e f i r s t q u e s t i o n than f o r t h e t h i r d due t o t h e d i f f e r e n t shape o f t h e v a l u e f u n c t i o n f o r g a i n s and f o r l o s s e s . THe o p p o r t u n i t y t o \" p r e v e n t a d e c l i n e \" s u g g e s t s t h a t f u t u r e a i r q u a l i t y l e v e l s w i l l be lower u n l e s s some a c t i o n - - i n t h i s c a s e , a t a x p a y m e n t -i s t a k e n t o d a y . The f r a m i n g o f t h e f i r s t v e r s i o n t h e r e f o r e e n c o u r a g e s r e s -pondents t o assume a f i x e d r e f e r e n c e p o i n t a s s o c i a t e d w i t h p r e s e n t h i g h l e v e l s o f a i r q u a l i t y . In c o n t r a s t , t h e f r a m i n g o f t h e t h i r d q u e s t i o n encourages r e s p o n d e n t s t o adopt an a d j u s t e d r e f e r e n c e p o i n t a s s o c i a t e d w i t h f u t u r e lower l e v e l s o f a i r q u a l i t y and t o view t h e maintenance o f p r e s e n t c o n d i t i o n s as a r e l a t i v e g a i n . S i n c e the v a l u e f u n c t i o n p r o p o s e d by p r o s p e c t t h e o r y t s s t e e p e r f o r l o s s e s t h a n f o r g a i n s , we would a n t i c i p a t e t h a t an i n d i v i d u a l would e x h i b i t a g r e a t e r w i l l i n g n e s s t o pay i n o r d e r t o a v o i d a l o s s than t o m a i n t a i n t h e p r e s e n t s t a t e o f a i r q u a l i t y . R e s u l t s o f t h i s t r i a l s u p p o r t the i n t e r p r e t a t i o n s u g g e s t e d by p r o s p e c t t h e o r y and p r o v i d e a d d i t i o n a l e v i d e n c e t h a t what have f o r m a l l y been c o n s i d e r e d t o be i r r e l e v a n t v a r i a t i o n s i n the f r a m i n g o f t h e payment q u e s t i o n can l e a d t o s i g n i f i c a n t d i f f e r e n c e s i n s u b j e c t s ' e x p r e s s e d v a l u a t i o n s . As d e m o n s t r a t e d by T e s t 34, 46 p e r c e n t o f r e s p o n d e n t s (27 o f 59) r e f u s e d t o pay a t a x o f $25.00 i n o r d e r t o m a i n t a i n p r e s e n t a i r q u a l i t y l e v e l s w h i l e o n l y 27 p e r c e n t (15 o f 117 56) r e f u s e d t o pay t h e same amount i n o r d e r t o p r e v e n t t h e i r d e c l i n e . The 2 C h i - S q u a r e t e s t y i e l d s an x o f 4.54, which w i t h one Degree o f Freedom demon-s t r a t e s t h a t t h e d i f f e r e n c e i n the two e v a l u a t i o n approaches i s s i g n i f i c a n t a t t h e 5 p e r c e n t l e v e l . V a l u e > $25 V a l u e < $25 T o t a l W i l l i n g t o pay $25, 41 15 56 p r e v e n t W i l l i n g t o pay $25, \u00E2\u0080\u00A2 32 27 59 ( T e s t 34) m a i n t a i n T o t a l 73 42 115 x 2 = 4.54 An a d d i t i o n a l f a c t o r ( c o n s i d e r e d i n more d e t a i l i n the f i n a l s e c t i o n ) may a l s o be o p e r a t i v e i n t h a t t h e f i r s t q u e s t i o n a p p e a l s t o the s e l f - i m a g e o f th e r e s p o n d e n t and i n t r o d u c e s an i m p l i e d sense o f r e s p o n s i b i l i t y c o s t s . I f no a c t i o n i s t a k e n and a i r q u a l i t y l e v e l s do i n f a c t d e c l i n e , an i n d i v i d u a l who answers n e g a t i v e l y might w e l l f e e l some measure o f p e r s o n a l blame f o r h a v i n g p a s s e d up an e x p l i c i t o p p o r t u n i t y t o i n t e r v e n e . H i s o r her c h o i c e i s unam-b i g u o u s l y c l e a r : e i t h e r pay t h e t a x o r f a c e t h e consequences o f l o w e r a i r q u a l i t y l e v e l s . In t h e t h i r d q u e s t i o n the e f f e c t o f r e f u s a l i s not e x p l i c i t l y s t a t e d , and the q u e s t i o n does n o t p r e s e n t a c l e a r c a u s a l r e l a t i o n s h i p between a f a i l u r e t o m a i n t a i n p r e s e n t a i r q u a l i t y s t a n d a r d s and the l o w e r i n g o f f u t u r e l e v e l s . As a r e s u l t , t h e r e i s no c l e a r c a l l t o a c t i o n and hence r e s p o n s i b i l i t y c o s t s a s s o c i a t e d w i t h a n e g a t i v e r e s p o n s e a r e s u b s t a n t i a l l y l o w e r e d . The p r e s e n c e o f a weak c e r t a i n t y e f f e c t , by which outcomes p e r c e i v e d t o be p r o b a b l e a r e un d e r w e i g h t e d i n comparison w i t h c e r t a i n outcomes (Kahneman and T v e r s k y , 1979), may s e r v e t o reemphasize t h i s p o i n t . S i n c e t he f i r s t q u e s t i o n s u g g e s t s t h a t payment i s r e q u i r e d t o p r e v e n t a c e r t a i n d e c l i n e i n a i r 118 q u a l i t y l e v e l s and the t h i r d q u e s t i o n o n l y i m p l i e s t h a t a d e c l i n e might o c c u r , a c e r t a i n t y e f f e c t may i n c r e a s e s u b j e c t s ' r e l a t i v e w i l l i n g n e s s t o pay i n t h e f i r s t v e r s i o n o f t h e q u e s t i o n . INFLUENCE OF ANCHORING BIASES One o f t h e most i n t u i t i v e l y p l a u s i b l e c o g n i t i v e b i a s e s i s c o n c e r n e d w i t h the f i n d i n g t h a t a d j u s t m e n t s from an i n i t i a l o p i n i o n o r v a l u e t e n d t o be both i m p r e c i s e and i n s u f f i c i e n t . The c o n c e p t emphasizes t h e common-sense d i c t u m t h a t f i r s t i m p r e s s i o n s which a r e formed o f a p e r s o n , i d e a o r v a l u e a r e e x t r e m e l y i m p o r t a n t and f r e q u e n t l y prove s u r p r i s i n g l y r e s i s t a n t t o subsequent and even c o n f l i c t i n g i n f o r m a t i o n o r a l t e r n a t e p e r c e p t i o n s . T h e r e e x i s t s a n o t a b l e l a c k o f consensus among s u r v e y r e s e a r c h e r s r e g a r d i n g t h e s i g n i f i c a n c e o f a n c h o r i n g e f f e c t s o r t h e t y p e s o f i n i t i a t i v e s which c o u l d be u n d e r t a k e n t o m i n i m i z e t h e i . r i n f l u e n c e . As emphasized i n t h e d i s c u s s i o n o f C h a p t e r IV, t h i s d i s a g r e e m e n t i s i n p a r t r e l a t e d t o the d i f f e r -e n t c o n t e x t s i n which s u r v e y s o f non-market v a l u e s have been u n d e r t a k e n . To t h e e x t e n t t h a t p r e f e r e n c e s a r e w e l l - f o r m e d and c l e a r l y bounded, a n c h o r i n g e f f e c t s \u00E2\u0080\u0094 o r , as t h e y a r e more i n f o r m a l l y known, s t a r t i n g p o i n t b i a s e s \u00E2\u0080\u0094 s h o u l d e x e r t a minimal i n f l u e n c e on an i n d i v i d u a l ' s e x p r e s s e d v a l u e s . For example, s u r v e y measures o f r o u t i n e e x p e n d i t u r e s o r w e l l u n d e r s t o o d b e h a v i o r s h o u l d be r e l a t i v e l y f r e e o f a n c h o r i n g b i a s . On the o t h e r hand, i f i n d i v i d u a l s have n o t g i v e n much t h o u g h t t o an i s s u e o r a r e t r y i n g t o e v a l u a t e a good f o r t h e f i r s t t i m e , t h e i r s u s c e p t i b i l i t y t o t h e magnetism o f an i n i t i a l v a l u e o r p e r c e p t i o n i s l i k e l y t o i n c r e a s e s u b s t a n t i a l l y . T h i s s e c t i o n p r e s e n t s t h e r e s u l t s o f s e v e r a l e x p e r i m e n t s which have been c o n d u c t e d t o t e s t t h e i n f l u e n c e o f a n c h o r i n g b i a s e s . Two d i f f e r e n t s i t u a t i o n s were employed. In t h e f i r s t , p a r t i c i p a n t s were asked t o r e s p o n d 119 affirmatively or negatively to a proposed trade-off between a i r quality levels and a specified monetary payment or offer of compensation. In these experiments, which were primarily administered to university-level students, both goods under consideration are well understood but the required ex-change\u00E2\u0080\u0094weighing environmental quality against discrete amounts of money--is l i k e l y to be unfamiliar. In the second s i t u a t i o n , participants were asked i f they would agree to pay a designated sum of money in order to v i s i t or to help maintain the Provincial Museum in V i c t o r i a . Both of the payment v e h i c l e s \u00E2\u0080\u0094 e i t h e r an addition to annual taxes or an entrance f e e \u00E2\u0080\u0094 a r e f a m i l i a r , and the trade-off i t s e l f , which posits the need to pay money to help operate a Museum, i s also readily comprehensible. If starting point biases are to be found, t h e i r influence would therefore be least surprising in the questions concerned with environmental quality. The results of the tests provide strong evidence for the existence of pronounced anchoring biases, and this conclusion holds for both sets of experi-ments. In t o t a l , nine of the eleven tests which were conducted showed a s t a t i s t i c a l l y s i g n i f i c a n t influence of anchoring effects at the 5 percent l e v e l . Unfortunately, i t i s not easy to move from a demonstration of the problem to the development of a general strategy for improving survey design. The empirical evidence shows that when the same question i s asked using two different i n i t i a l values the results are l i k e l y to be substantially d i f f e r e n t , but no information i s thereby gained regarding which of the two questions provides a more accurate estimate of an individual's true value. At the . l e a s t , i t appears that survey approaches to the valuation of non-market goods should in most cases employ a range of values rather than a single \"most reasonable\" estimate which may only influence participants to confirm the 120 p r e j u d i c e s o f t h e i n v e s t i g a t o r . A t the most, i t would be advantageous t o a l s o p h r a s e the same e v a l u a t i o n q u e s t i o n i n a number o f d i f f e r e n t ways and t o employ an i n t e r a c t i v e d e b r i e f i n g o r d e b i a s i n g p r o c e d u r e whereby r e s p o n d e n t s c o u l d be h e l p e d t o g a i n an improved p e r s p e c t i v e on and u n d e r s t a n d i n g o f t h e i r answers. These c o n c e r n s w i l l be d i s c u s s e d more c l o s e l y as p a r t o f C h a p t e r V I I . T e s t 35 ( Q u e s t i o n n a i r e s a. and a..) T h i s t e s t compares two v e r s i o n s o f a q u e s t i o n which asks p a r t i c i p a n t s t o e s t i m a t e the economic v a l u e o f t h e B.C. P r o v i n c i a l Museum. F o l l o w i n g a s h o r t d e s c r i p t i o n o f Museum s e r v i c e s and s u r v e y o b j e c t i v e s and s e v e r a l i n t r o -d u c t o r y demographic q u e s t i o n s , r e s p o n d e n t s a r e asked i f t h e y would be w i l l i n g t o pay a s p e c i f i e d e n t r a n c e f e e i n o r d e r t o v i s i t t h e Museum. In one c a s e , p a r t i c i p a n t s who a r e w i l l i n g t o pay a $3.00 e n t r a n c e f e e a r e asked i f t h e y would pay $5.00, w h i l e t h o s e who r e f u s e a r e asked i f t h e y would pay $1.00. In t he o t h e r c a s e p a r t i c i p a n t s a r e f i r s t asked i f t h e y would pay $4.00; t h o s e r e s p o n d i n g a f f i r m a t i v e l y a r e then asked t o pay $5.00, w h i l e t h o s e who r e f u s e a r e asked i f t h e y would pay $3.00. The second t r i a l employs a h i g h e r i n i t i a l v a l u e , and i f an a n c h o r i n g b i a s i s e v i d e n t r e s p o n d e n t s s h o u l d be encouraged t o pay a h i g h e r a d m i s s i o n f e e than i n t h e f i r s t c a s e . In a d d i t i o n , t h e h i g h e r s t a r t i n g amount used i n the s e c o n d t e s t d e c r e a s e s t h e d i f f e r e n c e between the i n i t i a l and s u b s e q u e n t v a l u e s . I t was f e l t t h a t more p e o p l e might be encouraged t o pay $5.00, and fewer r e f u s e t o pay $3.00, f o l l o w i n g an i n i t i a l r e f e r e n c e p o i n t o f $4.00 r a t h e r t h a n $3.00. T h i s i s e x a c t l y what i s f o u n d , and the l e v e l o f v a r i a t i o n i n answers t o t h e two a p p r o a c h e s i s s u r p r i s i n g l y l a r g e . While o n l y 31 p e r c e n t o f r e s -pondents (49 o f 158) who were asked t h e f i r s t q u e s t i o n were w i l l i n g t o pay an 121 e n t r a n c e f e e o f $5.00, 47 p e r c e n t (23 o f 49) o f a l l t h o s e who were f i r s t a s ked i f t h e y would pay $4.00 a g r e e d t o pay $5.00. The x f o r t h i s d i f f e r e n c e i s 4.25, which w i t h one Degree o f Freedom i s s i g n i f i c a n t a t the 5 p e r c e n t l e v e l . V a l u e > $5 V a l u e < $5 T o t a l W i l l i n g t o pay, i n i t i a l 49 \u00E2\u0080\u00A2 109 158 v a l u e o f $3.00 W i l l i n g t o pay, i n i t i a l 23 26 49 ( T e s t 35) v a l u e o f $4.00 T o t a l 72 135 207 x 2 = 4.25 T e s t s 36, 37 and 38 Q u e s t i o n n a i r e s b., b.., and b...) The t e s t s which a r e d i s c u s s e d i n t h i s s e c t i o n compare the j o i n t e f f e c t s o f d i f f e r e n t s t a r t i n g p o i n t s and d i f f e r e n t b i d i n c r e m e n t s on p a r t i c i -p a n t s ' e x p r e s s e d v a l u e s . The t h r e e q u e s t i o n n a i r e s a r e s i m i l a r t o t h o s e j u s t d i s c u s s e d but i n t h i s c a s e o n - s i t e v i s i t o r s were asked t h e i r w i l l i n g n e s s t o make an i n c r e a s e d t a x payment i n o r d e r t o ensu r e \" t h a t t he p r e s e n t q u a l i t y o f Museum e x h i b i t s i s m a i n t a i n e d . \" T h r e e d i f f e r e n t l e v e l s o f payment were t e s t e d , w i t h a b a s i c q u e s t i o n a g a i n employing sums o f $3.00, $5.00, and $1.00 and two v a r i a n t s p r e s e n t i n g payment l e v e l s o f $5.00, $10.00 and $3.00 and $10.00, $20.00 and $5.00. T e s t s f o r t h e s i g n i f i c a n c e o f a n c h o r i n g e f f e c t s were u n d e r t a k e n a t the $5.00 payment l e v e l , which i s common t o a l l t h r e e t r i a l s but v a r i e s i n a r e l a t i v e sense a c c o r d i n g t o the c o n t e x t which i s p r o v i d e d by the accompanying sums. In the f i r s t c a s e , a $5.00 payment i s t h e l a r g e s t amount under c o n s i -d e r a t i o n and i s l i k e l y t o be viewed i n r e l a t i o n t o the i n i t i a l v a l u e o f $3.00. In t h e second t e s t $5.00 r e p r e s e n t s t he s t a r t i n g sum and might w e l l be v a l u e d a t a r e l a t i v e l y l o w e r l e v e l when viewed e i t h e r i n i s o l a t i o n (as the f i r s t v a l u e 122 c o n s i d e r e d ) o r i n r e f e r e n c e t o the subsequent o p t i o n o f a $10.00 payment. In the t h i r d i n s t a n c e t he $5.00 payment c h o i c e comes l a s t and may be seen as a l a s t chance by t h o s e h o l d i n g a p o s i t i v e v a l u e but who were u n w i l l i n g t o pay th e h i g h e r amounts ( t h a t i s , $10.00 o r $20.00). T h i s i n t e r p r e t a t i o n s u g g e s t s t h a t more p e o p l e s h o u l d be w i l l i n g t o pay an annual t a x o f $5.00 t o m a i n t a i n the q u a l i t y o f Museum e x h i b i t s i n the second and t h i r d v e r s i o n s t h a n i n the f i r s t , and a l s o t h a t e x p r e s s e d v a l u e s might be h i g h e r f o r the f i n a l t e s t , when a $10.00 sum i s t h e s t a r t i n g payment, than when the i n i t i a l amount i s $5.00. Va1ue> $5 V a l u e < - $5 T o t a l W i l l i n g t o pay, i n i t i a l 78 27 105 v a l u e o f $3.00 W i l l i n g t o pay, i n i t i a l 30 3 33 ( T e s t 36) v a l u e o f $5.00 T o t a l 108 30 138 x 2 = 4.12 The c o n f i r m a t i o n o f t h i s h y p o t h e s i s i s p r e s e n t e d i n t e s t s 36, 37 and 38. Whereas tw e n t y - s e v e n o f the 105 p a r t i c i p a n t s (26 p e r c e n t ) r e f u s e d t o make a $5.00 payment f o l l o w i n g an i n i t i a l v a l u e o f $3.00, o n l y t h r e e o u t o f t h i r t y -t h r e e r e s p o n d e n t s (9 p e r c e n t ) r e f u s e d t o pay an equal amount when the $5.00 payment o p t i o n was p r e s e n t e d f i r s t and f o l l o w e d by a $10.00 c h o i c e . S i m i l a r l y , o n l y two o u t o f a t o t a l o f t h i r t y - t h r e e s u b j e c t s (6 p e r c e n t ) r e f u s e d t o make a $5.00 payment a f t e r f i r s t b e i n g p r e s e n t e d w i t h t h e o p p o r t u n i t y t o pay e i t h e r $10.00 o r $20.00. The x f o r both comparisons i n d i c a t e s a s t a t i s t i c a l l y s i g -n i f i c a n t d egree o f d i f f e r e n c e , and argues i n f a v o r o f the p r e s e n c e o f a d e f i n -i t e a n c h o r i n g b i a s . F or t e s t 36, which compares the f i r s t and second v e r s i o n s 2 o f t h i s q u e s t i o n , t he x i s 4.12; f o r t e s t 37, which compares the f i r s t and 2 t h i r d e x p e r i m e n t s , t he x i s 5.77: both a r e s i g n i f i c a n t a t the 5 p e r c e n t 123 l e v e l V a l u e > $5 V a l u e <, $5 T o t a l W i l l i n g t o pay, i n i t i a l 78 27 105 v a l u e o f $3.00 W i l l i n g t o pay, i n i t i a l 31 2 33 ( T e s t 37) v a l u e o f $10.00 T o t a l 109 29 138 x 2 = 5.77 T e s t 38 compares t h e r e s p o n s e s g i v e n t o the second and t h i r d w i l l i n g -ness t o pay v a r i a n t s , which employ r e s p e c t i v e s t a r t i n g v a l u e s o f $5.00 and $10.00. The impact o f an a n c h o r i n g b i a s i s a g a i n s u b s t a n t i a l : w h i l e n e a r l y h a l f (16 o f 33, o r 48 p e r c e n t ) o f the p a r t i c i p a n t s i n the f i r s t e x p e r i m e n t r e f u s e d t o make a $10.00 annual t a x payment, o n l y f i v e o f t h i r t y - t h r e e r e s p o n -dents (15 p e r c e n t ) i n t h e second t e s t were u n w i l l i n g t o pay $10.00 t o m a i n t a i n t h e q u a l i t y o f Museum e x h i b i t s . The x f o r t h i s v a r i a t i o n i s 8.45, which w i t h one Degree o f Freedom i s s i g n i f i c a n t a t the 5 p e r c e n t l e v e l , and ar g u e s p e r -s u a s i v e l y t h a t t h e d i f f e r e n c e i n the two a p p r o a c h e s \u00E2\u0080\u0094 w h i c h were i d e n t i c a l i n a l l a s p e c t s e x c e p t the s p e c i f i e d l e v e l s o f p a y m e n t \u00E2\u0080\u0094 i s r e l i a b l y a l t e r i n g t h e e x p r e s s e d p r e f e r e n c e s o f s u r v e y p a r t i c i p a n t s . V a l u e > $10 V a l u e < $10 T o t a l W i l l i n g t o pay, i n i t i a l 17 16 33 v a l u e o f $5.00 W i l l i n g t o pay, i n i t i a l 28 5 33 ( T e s t 38) v a l u e o f $10.00 T o t a l 45 21 66 x 2 = 8.45 124 T e s t s 39, 40 and 41 ( Q u e s t i o n n a i r e s JTT j..\u00C2\u00BB T h i s s e t o f q u e s t i o n s was d e s i g n e d t o e s t i m a t e t h e v a l u e o f the Museum t o p r o v i n c i a l r e s i d e n t s who were n o t a t . p r e s e n t v i s i t i n g , and who might n e v e r v i s i t , t h e Museum e x h i b i t s i n p e r s o n . B r i e f d e s c r i p t i o n s o f the Museum and s u r v e y o b j e c t i v e s were p r e s e n t e d t o r e s p o n d e n t s , who were then asked t o s t a t e t h e i r w i l l i n g n e s s t o make an i n c r e m e n t a l t a x payment \" t o en-s u r e t h a t t h e Museum e x h i b i t s - r e m a i n open t o v i s i t o r s and p r e s e r v e ( s ) y o u r o p p o r t u n i t y t o v i s i t t h e Museum a t some f u t u r e t i m e . \" Responses t o t h r e e v e r s i o n s o f the q u e s t i o n , s p e c i f y i n g h y p o t h e t i c a l t a x payments o f between $1.00 and $20.00 and s t a r t i n g p o i n t s o f $3.00, $5.00 and $10.00, were o b t a i n e d i n each o f f o u r B r i t i s h Columbian c i t i e s : V i c t o r i a , V a n c o u v e r , C h i l l i w a c k and N e l s o n . The payment l e v e l s employed i n t h e s e t h r e e t e s t s o f non- u s e r s were i d e n t i c a l t o t h o s e p r e s e n t e d i n t h e p r e c e d i n g t h r e e t r i a l s ( t e s t s 36, 37 and 3 8 ) , and i n t h i s c a s e t h e i n f l u e n c e o f a s t a r t i n g p o i n t b i a s i s found t o be even s t r o n g e r . Whereas 34 p e r c e n t (67 o u t o f 200) o f t h e i n d i v i d u a l s p a r t i -c i p a t i n g i n t h e b a s i c t e s t (which p r e s e n t e d r e s p e c t i v e payment l e v e l s o f $3.00, $5.00 and $1.00) were not w i l l i n g t o pay $5.00, o n l y 17 p e r c e n t (26 o f 152) and 16 p e r c e n t (17 o f 103) o f r e s p o n d e n t s i n the second and t h i r d v e r -s i o n s o f t h e e x p e r i m e n t r e f u s e d t o make a $5.00 payment. T e s t s 39 and 40 p r e s e n t t h e s e r e s u l t s and de m o n s t r a t e t h e s u b s t a n t i a l d i f f e r e n c e s i n p a r t i c i -2 p a n t s ' e x p r e s s e d v a l u e s . The x s t a t i s t i c f o r t h e 2x2 c o n t i n g e n c y t a b l e 2 d e r i v e d from t e s t 39 i s 12.01, w h i l e t he x f o r t e s t 40 i s 9.87; both v a l u e s a r e s i g n i f i c a n t a t t h e 5 p e r c e n t l e v e l . The e v i d e n c e i s e q u a l l y c l e a r t h a t t h e d i f f e r e n c e i n i n d i v i d u a l s ' a v e r a g e e x p r e s s e d v a l u e s between s t a r t i n g p o i n t s o f $5.00 and $10.00 i s a l s o s i g n i f i c a n t . S i x t y - n i n e o f 152 r e s p o n d e n t s (45 p e r c e n t o f t h o s e sampled) were 125 w i l l i n g t o pay $10.00 when a $5.00 payment o p t i o n was g i v e n f i r s t compared to s i x t y - s e v e n o f 103 p a r t i c i p a n t s (65 p e r c e n t ) who were w i l l i n g t o pay 2 $10.00 when i t was p r e s e n t e d as t h e s t a r t i n g v a l u e . The x f o r t h i s v a r i a t i o n i s 9.58, which i s a g a i n s i g n i f i c a n t a t t h e 5 p e r c e n t l e v e l and p r o v i d e s a d d i -t i o n a l e v i d e n c e o f the i m p o r t a n t i n f l u e n c e o f s t a r t i n g p o i n t s on i n d i v i d u a l s ' e x p r e s s e d v a l u e s . W i l l i n g t o pay, i n i t i a l v a l u e o f $3.00 W i l l i n g t o pay, i n i t i a l v a l u e o f $5.00 T o t a l W i l l i n g t o pay, i n i t i a l v a l u e o f $3.00 W i l l i n g t o pay, i n i t i a l v a l u e o f $10 T o t a l V a l u e > $5 133 126 259 V a l u e > $5 133 86 219 V a l u e d $5 T o t a l 67 26 93 67 17 84 200 152 ( T e s t 39) 352 V a l u e ^ $5 T o t a l 200 303 x = 12.01 103 ( T e s t 40) x c = 9.87 W i l l i n g t o pay, i n i t i a l v a l u e o f $5.00 W i l l i n g t o pay, i n i t i a l v a l u e o f $10 T o t a l V a l u e > $10 69 67 136 Va l u e < $10 T o t a l 83 36 119 152 103 ( T e s t 41) 255 x^ = 9.58 126 T e s t s 42 and 43 ( Q u e s t i o n n a i r e s l a and 4b; 4c and 4d) These two t e s t s both examine the i n f l u e n c e o f a n c h o r i n g b i a s e s i n t h e c o n t e x t o f r e s p o n s e s g i v e n t o the U n i v e r s i t y o f B r i t i s h Columbia s u r v e y s o f i n d i v i d u a l s ' e x p r e s s e d w i l l i n g n e s s t o pay i n o r d e r t o p r e v e n t a d e c l i n e i n av e r a g e a i r q u a l i t y l e v e l s . The i n t r o d u c t o r y d e s c r i p t i o n s o f s u r v e y o b j e c -t i v e s and t h e r e m i n d e r t h a t e n v i r o n m e n t a l p r o t e c t i o n i s n o t c o s t l e s s were i d e n t i c a l i n a l l f o u r q u e s t i o n n a i r e s , as was the form o f the subsequent v a l u a -t i o n q u e s t i o n s . The o n l y d i f f e r e n c e i n t h e f o u r v e r s i o n s was i n the s p e c i f i e d l e v e l s o f payment open t o each r e s p o n d e n t . T e s t 42 compares t h e r e s p o n s e s which were g i v e n t o a q u e s t i o n n a i r e p r o p o s i n g an i n i t i a l payment o f $10.00 w i t h t h e v a l u e s e x p r e s s e d by p a r t i c i -p a n ts i n r e f e r e n c e t o a q u e s t i o n n a i r e which employed a s t a r t i n g v a l u e o f $100.00. T e s t r e s u l t s a r e shown f o r a $25.00 l e v e l o f payment. In the f i r s t c a s e , where $25.00 r e p r e s e n t s t h e maximum payment c h o i c e and f o l l o w s a s t a r t -i n g v a l u e o f $10.00, f o r t y - o n e o f f i f t y - s i x r e s p o n d e n t s (73 p e r c e n t ) were w i l l i n g t o pay a t l e a s t $25.00 t o p r e v e n t a p o s s i b l e d e c l i n e i n a i r q u a l i t y w i t h i n t h e a r e a . When $25.00 appeared as t h e f i n a l payment o p t i o n , f o l l o w i n g an i n i t i a l v a l u e o f $100.00 and a maximum c h o i c e o f $200.00, t w e n t y - e i g h t o f t h e t h i r t y p e r s o n s c o m p l e t i n g t he q u e s t i o n n a i r e (93 p e r c e n t ) s t a t e d t h e i r w i l l i n g n e s s t o pay t h i s amount. A C h i - S q u a r e t e s t o f t h e s e r e s u l t s y i e l d s an 2 x o f 4.92, which w i t h one Degree o f Freedom i s s i g n i f i c a n t a t the 5 p e r c e n t l e v e l . T h i s r e s u l t i s s i m i l a r t o t h a t o f p r e v i o u s t e s t s , where the c o n t e x t w i t h i n which a p a r t i c u l a r sum was p r e s e n t e d t o r e s p o n d e n t s appears t o make i t seem r e l a t i v e l y h i g h e r o r l o w e r . What i s s u r p r i s i n g i s n o t so much t h a t $5.00 l o o k s b i g when compared t o $3.00 and sm a l l when compared t o $20.00 but t h a t the v a l u e which i n d i v i d u a l s p l a c e on t h e goods under c o n s i d e r a t i o n i s 127 a p p a r e n t l y so m a l l e a b l e , so e a s i l y swayed by a change i n the p o i n t o f r e f e r -e n c e . V a l u e > $25 V a l u e < $25 T o t a l W i l l i n g t o pay, i n i t i a l 41 15 56 v a l u e o f $10 W i l l i n g t o pay, i n i t i a l 28 2 30 ( T e s t 42) v a l u e o f $100 T o t a l 69 17 86 x 2 = 4.92 T e s t 43 compares t h e r e s u l t s o f two a d d i t i o n a l e x p e r i m e n t s which were c o n d u c t e d u s i n g s t a r t i n g p o i n t s o f '$100.00 and $10.00. In the f i r s t t r i a l , t h o s e r e s p o n d e n t s who were w i l l i n g t o pay $100.00 were asked i f t h e y would pay $200.00, w h i l e t h o s e who r e f u s e d were p r e s e n t e d w i t h an o p p o r t u n i t y t o pay a $50.00 annual t a x . In t h e second v e r s i o n , p a r t i c i p a n t s who a g r e e d t o pay $10.00 were asked i f t h e y would pay $50.00, w h i l e t h o s e r e f u s i n g were g i v e n t h e o p t i o n o f p a y i n g $5.00. The t e s t r e s u l t s , c o n d u c t e d a t the s h a r e d payment l e v e l o f $50.00, add t o t h e e v i d e n c e i n s u p p o r t o f a s u b s t a n t i a l a n c h o r i n g b i a s . When t h e $50.00 payment l e v e l was p r e s e n t e d l a s t , f o l l o w i n g p r e v i o u s amounts o f two and f o u r t i m e s as much, t w e n t y - f o u r o f t h i r t y - t w o p a r t i c i p a n t s (75 p e r c e n t o f t h o s e sampled) a g r e e d t o pay t h i s amount i n o r d e r t o p r e v e n t a p o s s i b l e d e c l i n e i n a i r . q u a l i t y l e v e l s . However, when $50.00 r e p r e s e n t e d t he maximum payment o p t i o n o n l y n i n e o f twenty-seven r e s p o n d e n t s (33 p e r c e n t ) were w i l l i n g t o pay 2 t h i s amount. With an x v a l u e o f 10.31, t h e d i f f e r e n c e i n r e s u l t s p r o v e s t o be s t a t i s t i c a l l y s i g n i f i c a n t a t the 5 p e r c e n t l e v e l . 128 V a l u e > $50 V a l u e < $50 T o t a l W i l l i n g t o pay, i n i t i a l v a l u e o f $100, 24 8 32 W i l l i n g t o pay, i n i t i a l v a l u e o f $10 ' 9 18 27 ( T e s t 43) T o t a l 33 26 59 x 2 = 10.31 T e s t 44 ( Q u e s t i o n n a i r e s 2a and 2d) T h i s t e s t p r o v i d e s an e s t i m a t e o f r e s p o n d e n t s ' w i l l i n g n e s s t o a c c e p t c o m p e n s a t i o n i n r e t u r n f o r p e r m i t t i n g l o w e r a v e r a g e l e v e l s o f a i r q u a l i t y . Two d i f f e r e n t payment o p t i o n s were a g a i n p r e s e n t e d . The f i r s t employed an i n i t i a l v a l u e o f $10.00; i f i t was a c c e p t a b l e p a r t i c i p a n t s were asked i f t h e y would s e t t l e f o r a $5.00 payment, w h i l e i f i t was c o n s i d e r e d t o be i n s u f f i -c i e n t p a r t i c i p a n t s were o f f e r e d $25.00. The second v e r s i o n s t a r t e d w i t h an o f f e r o f $100.00 i n compensation and then e i t h e r i n c r e a s e d i t t o $200.00 o r d e c r e a s e d i t t o $25.00. A $25.00 payment i s t h u s viewed as e i t h e r t he minimum o r t h e maximum sum o f f e r e d t o r e s p o n d e n t s i n t r a d e f o r the l o w e r l e v e l o f a i r q u a l i t y . In t h i s c a s e t he d i f f e r e n c e i n r e s u l t s a t $25.00 i s n o t s i g n i f i c a n t . The r e a s o n i s i m m e d i a t e l y c l e a r from t he r e s p o n s e s shown i n t e s t 44: such a h i g h p r o p o r t i o n o f p a r t i c i p a n t s (92 p e r c e n t o f t h o s e sampled) were u n w i l l i n g t o a c c e p t a $25.00 payment even w i t h a s t a r t i n g o f f e r o f $10.00 t h a t any v a r i a t i o n i n r e s p o n s e s due t o the p r e s e n c e o f an a n c h o r i n g b i a s i s r e n d e r e d i n v i s i b l e . As a r e s u l t , t h e 95 p e r c e n t o f r e s p o n d e n t s (36 o f 38) who r e f u s e d t o a c c e p t $25.00 i n compensation a f t e r f i r s t b e i n g o f f e r e d $100.00 i s n o t s i g n i f i c a n t l y d i f f e r e n t from t h e p e r c e n t a g e which r e f u s e d f o l l o w i n g an o f f e r o f $10.00: whether the $25.00 payment appea r s r e l a t i v e l y l a r g e r o r s m a l l e r i s a p p a r e n t l y u n i m p o r t a n t , because e i t h e r way i t i s viewed as i n s u f f i c i e n t 129 c o m p e n s a t i o n . V a l u e > $ 2 5 V a l u e <\u00E2\u0080\u00A2 $25 T o t a l W i l l i n g t o a c c e p t , i n i t i a l v a l u e o f $10 48 4 52 W i l l i n g t o a c c e p t , i n i t i a l v a l u e o f $100 36 2 38 ( T e s t 44) T o t a l 84 6 90 x T e s t s 45 and 46 ( Q u e s t i o n n a i r e s c. and c . . . , e. and e..) These two t e s t s e v a l u a t e t h e p o s s i b l e i m p o r t a n c e o f an a n c h o r i n g ' ; e f f e c t when i t i s conveyed t h r o u g h a frame o f r e f e r e n c e which i s o s t e n s i b l y p r o v i d e d t o a s s i s t t h e p a r t i c i p a n t i n bounding t h e v a l u e p l a c e d on the good o r a c t i v i t y under c o n s i d e r a t i o n . The ap p r o a c h has been employed i n a number o f s t u d i e s ( f o r example, Meyer, 1974) which seek t o e s t i m a t e t h e v a l u e o f non-market goods, and i t i s f r e q u e n t l y p r o p o s e d as a way t o r e n d e r an u n f a m i l i a r and r e l a t i v e l y complex p r o c e s s \u00E2\u0080\u0094 p l a c i n g a monetary v a l u e on an u n p r i c e d g o o d -l e s s f o r m i d a b l e . Each o f t h e t e s t s , which e s t i m a t e the economic v a l u e o f the P r o v i n c i a l Museum, compare two r e f e r e n c e s c a l e s which d i f f e r i n the mean v a l u e p r e s e n t e d t o r e s p o n d e n t s . In t h e f i r s t e x p e r i m e n t , i n d i v i d u a l s were p r o v i d e d w i t h a l i s t showing t he a p p r o x i m a t e a d u l t e n t r a n c e p r i c e s which must be p a i d t o v i s i t s i x o t h e r r o u g h l y comparable e x h i b i t s i n North A m e r i c a . They were then a s k e d , i n l i g h t o f t h e s e r e f e r e n t p r i c e s , whether t h e y would be w i l l i n g t o pay an a d m i s s i o n f e e o f $3.00 t o v i s i t t h e P r o v i n c i a l Museum. Those r e s p o n d i n g a f f i r m a t i v e l y were asked i f t h e y would a l s o a g r e e t o pay a $5.00 e n t r a n c e f e e , w h i l e t h o s e who r e f u s e d were asked i f t h e y would i n s t e a d pay $1.00. Four o f th e s i x p r i c e s i n c l u d e d f o r r e f e r e n c e , w i t h a mean v a l u e o f a p p r o x i m a t e l y 130 $3.75, were shown i n t h e same o r d e r on both v e r s i o n s , w h i l e t he r e m a i n i n g two v a l u e s were p l a c e d a t e i t h e r t h e h i g h (mean v a l u e o f about $9.00) o r low (mean v a l u e o f $2.00) e n d p o i n t s o f t h e r e s u l t i n g s c a l e . Even when t h e l e v e l s o f payment p r e s e n t e d t o p a r t i c i p a n t s a r e i d e n t i -c a l and the v a l u a t i o n p r o c e s s ( p a y i n g a v i s i t t o a Museum) i s r e a d i l y compre-h e n s i b l e , r e s p o n s e s t o t h e two q u e s t i o n s p r o v e d t o be s i g n i f i c a n t l y d i f f e r e n t . When t h e l o w e r p r i c e s were i n c l u d e d i n t h e r e f e r e n c e s c a l e o n l y e l e v e n o f the f o r t y - s e v e n p e r s o n s q u e s t i o n e d (23 p e r c e n t ) were w i l l i n g t o pay a $5.00 e n t r a n c e f e e t o v i s i t t h e Museum, w h i l e s e v e n t y - s i x o f 161 i n d i v i d u a l s (47 per-c e n t ) r e s p o n d i n g t o the h i g h e r s c a l e a g r e e d t o pay a $5.00 a d m i s s i o n p r i c e . 2 The x f o r t h i s d i f f e r e n c e i s 8.55, which means t h a t t h e r e s u l t s a r e s i g n i f i -c a n t a t the 5 p e r c e n t l e v e l . V a l u e > $5 V a 1 u e < $5 T o t a l W i l l i n g t o pay, h i g h 76 85 161 \" r e f e r e n c e s c a l e W i l l i n g t o pay, low 11 36 47 ( T e s t 45) r e f e r e n c e s c a l e T o t a l 87 121 208 x 2 = 8.55 The second e x p e r i m e n t employed the same two r e f e r e n c e s c a l e s but t h i s t i m e asked v i s i t o r s t o s t a t e t h e maximum f e e t h a t t h e y would be w i l l i n g t o pay i n o r d e r t o v i s i t t h e P r o v i n c i a l Museum. The d i f f e r e n c e i n the two s e t s o f r e s p o n s e s i s a g a i n s u b s t a n t i a l . Whereas o n l y t h i r t e e n o f f i f t y - f i v e r e s p o n -dents (24 p e r c e n t ) were w i l l i n g t o pay a $5.00 a d m i s s i o n f e e when the l o w e r s c a l e was employed, n e a r l y h a l f o f t h o s e q u e s t i o n e d (33 o f 68 p e r s o n s , o r 49 p e r c e n t ) a g r e e d t o pay t h i s p r i c e when the frame o f r e f e r e n c e which was p r o v -i d e d showed a h i g h e r a v e r a g e v a l u e . The x o f 8.11 f o r t h i s d i f f e r e n c e i s 131 a g a i n s i g n i f i c a n t a t the 5 p e r c e n t l e v e l , and p r o v i d e s a d d i t i o n a l e v i d e n c e t h a t the impact o f a p a r t i c u l a r r e f e r e n c e s c a l e on r e s p o n d e n t s ' e x p r e s s e d v a l u e s can be s u b s t a n t i a l . A l t h o u g h t h e c o n c e p t o f p r o v i d i n g some s o r t o f a n a l o g o u s framework as an a i d i n the measurement o f non-market v a l u e s i s ap-p e a l i n g , t h e s e r e s u l t s s u g g e s t t h a t i t may prove i m p o s s i b l e t o do so w i t h o u t s i m u l t a n e o u s l y b i a s i n g p a r t i c i p a n t s ' r e s p o n s e s . V a l u e > $5 V a l u e < $5 T o t a l W i l l i n g t o pay, h i g h 33 35 68 r e f e r e n c e s c a l e W i l l i n g t o pay, low 13 52 65 ( T e s t 46) r e f e r e n c e s c a l e T o t a l 46 87 133 x 2 = 8.11 T e s t 47 ( Q u e s t i o n n a i r e s l e and I f ) The f i n a l t e s t i n t h i s s e c t i o n a g a i n l o o k s a t t h e e f f e c t o f a n c h o r i n g b i a s e s i n t h e c o n t e x t o f a l t e r n a t i v e frames o f r e f e r e n c e . P a r t i c i p a n t s were asked i f t h e y would pay an annual t a x i n o r d e r t o p r e v e n t a d e c l i n e i n a i r q u a l i t y l e v e l s , and were p r o v i d e d w i t h a s h o r t l i s t o f s i x items which showed t h e a v e r a g e annual monetary payments made by B r i t i s h Columbian r e s i d e n t s f o r a number o f goods and s e r v i c e s . These e x p e n d i t u r e s were a r r a n g e d i n two columns o f t h r e e e n t r i e s e a c h : one column, w i t h a mean v a l u e o f about $86, was u t i l i z e d i n both v e r s i o n s , w h i l e t h e second column p r e s e n t e d t h r e e items w i t h a mean v a l u e o f e i t h e r $26.00 o r $215.00. The s p e c i f i e d l e v e l s o f payment and t h e s e q u e n c i n g o f payment o p t i o n s were the same i n both q u e s t i o n n a i r e s . The i n f l u e n c e o f the frame on p a r t i c i p a n t s ' e x p r e s s e d v a l u e s was a g a i n s u b s t a n t i a l , a l t h o u g h t h e e f f e c t o f a n c h o r i n g b i a s e s i s n o t as s t r o n g as i n t h e p r e c e d i n g examples. T w e n t y - t h r e e o f t h e t h i r t y - f o u r p e r s o n s (68 p e r c e n t ) 132 who r e c e i v e d t h e h i g h e r s e t o f r e f e r e n c e e x p e n d i t u r e s were w i l l i n g t o pay a t l e a s t $25.00 i n o r d e r t o p r e v e n t a d e c l i n e i n a i r q u a l i t y , w h i l e o n l y twenty-two o f t h e f o r t y - f i v e p a r t i c i p a n t s (49 p e r c e n t ) i n the e x p e r i m e n t which employed l o w e r r e f e r e n c e v a l u e s were w i l l i n g t o pay as much. T h i s d i f f e r e n c e i n e x p r e s s e d v a l u e s y i e l d s an x s t a t i s t i c o f 2.73, which i s not s i g n i f i c a n t a t t h e 5 p e r c e n t l e v e l . I t i s i n t e r e s t i n g t o n ote t h a t t h e s e r e s u l t s a r e t h e r e f o r e l e s s p e r s u a s i v e t h a n t h o s e p r e s e n t e d f o r e i t h e r o f the r e f e r e n c e t e s t s c o n d u c t e d a t the P r o v i n c i a l Museum: both t h e g r e a t e r magnitude o f the monetary d i f f e r e n c e s i n the a l t e r n a t i v e frames and the l e s s f a m i l i a r n a t u r e o f t h e exchange under c o n s i d e r a t i o n s u g g e s t e d t h a t the e v i d e n c e o f a n c h o r i n g b i a s e s m i ght i n s t e a d have been s t r o n g e r i n t h i s c o m p a r i s o n . V a l u e > $25 V a l u e < $25 T o t a l W i l l i n g t o pay, h i g h 23 11 34 r e f e r e n c e s c a l e W i l l i n g t o pay, low 22 23 45 ( T e s t 47) r e f e r e n c e s c a l e T o t a l 45 34 79 x 2 = 2.73 INFLUENCE OF PROCESS VARIABLES T h i s s e c t i o n d i s c u s s e s t h e r o l e p l a y e d by a number o f p r o c e s s v a r i a -b l e s , n o t a b l y r e s p o n s i b i l i t y c o s t s and r e g r e t , i n t h e v a l u a t i o n o f non-market goods. Emphasis i s t h e r e f o r e p l a c e d on t h e p s y c h i c c o s t s and b e n e f i t s o f an a c t i o n r a t h e r than the a c t u a l good which i s a c q u i r e d o r t h e s p e c i f i c a c t i v i t y i n which one i s engaged. These c o n s i d e r a t i o n s a r e o m i t t e d from most models o f d e c i s i o n - m a k i n g and c e r t a i n l y f a i l t o a p p e a r i n most d e s c r i p t i o n s o f economic b e h a v i o r , which i n s t e a d f o c u s on consumption p o s s i b i l i t i e s which a r i s e i n r e l a t i o n t o t a n g i b l e goods. P r o c e s s o r manner v a r i a b l e s i n s t e a d 1 3 3 s t r e s s t h a t t h e p a r t i c u l a r way i n which an a c t i o n i s p r e s e n t e d o r p e r f o r m e d - -t h e \"how\" o f a c h o i c e r a t h e r than s i m p l y t h e \"what\"--may e x e r t a s i g n i f i c a n t i n f l u e n c e on an i n d i v i d u a l ' s e x p r e s s e d p r e f e r e n c e s and o b s e r v e d b e h a v i o r . A sense o f t h e s e c o n c e r n s i s conveyed by the term \" t r a n s a c t i o n s c o s t s , \" which ap p e a r s f r e q u e n t l y i n both l e g a l and economic d i s c u s s i o n s o f such t o p i c s as t h e a p p r o p r i a t e n e s s o f a l t e r n a t i v e l i a b i l i t y r u l e s o r r e s o u r c e a l l o c a t i o n frameworks. Yet i n most c a s e s t r a n s a c t i o n s c o s t s remain vague and g e n e r a l , r e f e r r i n g t o f i n a n c i a l c o s t s o f unknown magnitude which a r e a s s o c i -a t e d w i t h g e t t i n g l a r g e numbers o f p e o p l e t o g e t h e r o r e x c l u d i n g f r e e r i d e r s who n e g l e c t o r r e f u s e t o pay f o r some good. The term \" p s y c h i c c o s t s \" has a l s o been employed a t t i m e s t o r e f e r t o such a n t i - r a t i o n a l i s t phenomenon as the w i d e l y o b s e r v e d r e l e v a n c e o f h i s t o r i c a l , o r sunk, c o s t s . However, n e i t h e r t r a n s a c t i o n n o r p s y c h i c c o s t s s u c c e s s f u l l y convey the r i c h n e s s and s i g n i f i c a n c e o f b e h a v i o r a l c o n c e r n s which a r e a s s o c i a t e d w i t h t h e way i n which a consumption d e c i s i o n i s u n d e r t a k e n o r a v o i d e d : j u s t as I may donate t o c h a r i t i e s f o r a l t r u i s t i c r e a s o n s so I may be hoping t o d e c r e a s e my t a x e s , i n f l a t e my ego o r r e l i e v e a sense o f a c u t e embarrassment r e l a t e d t o my r e l a t i v e p o s i t i o n o f w e a l t h . The d i s c u s s i o n o f C h a p t e r IV has s t r e s s e d t h a t whereas u t i l i t y t h e o r y e v a l u a t e s end s t a t e s o r f i n a l a s s e t p o s i t i o n s , p r o s p e c t t h e o r y emphasizes t h a t outcomes may more commonly be e x p r e s s e d as p o s i t i v e o r n e g a t i v e d e v i a t i o n s from a n e u t r a l r e f e r e n c e p o i n t . T h i s p r o v i d e s a c o n c e p t u a l b a s i s f o r the e v a l u a t i o n o f p r o c e s s c o n s i d e r a t i o n s such as r e g r e t o r r e s p o n s i b i l i t y t h r o u g h impacts on t h e r e f e r e n c e outcome. For example, I may i n i t i a l l y have been v e r y happy t o r e c e i v e a B on an e x a m i n a t i o n which I f e a r e d I might have f a i l e d ; however, a f t e r h e a r i n g t h a t my f r i e n d and s t u d y p a r t n e r r e c e i v e d an A, my j o y may t u r n t o c o n s t e r n a t i o n and a sense o f d i s a p p o i n t m e n t i n my p e r f o r m a n c e . 134 My r e f e r e n c e p o s i t i o n t h e r e f o r e i n c l u d e s elements o f both g a i n and l o s s , and t h e u t i l i t y o f the end state--my d i s s a t i s f a c t i o n a t r e c e i v i n g a mark which exceeds my i n i t i a l e x p e c t a t i o n \u00E2\u0080\u0094 c a n o n l y be u n d e r s t o o d i n terms o f the chang-i n g d e f i n i t i o n o f my r e f e r e n c e outcome. R o u t i n e and e a s i l y comprehended p u r c h a s e s \u00E2\u0080\u0094 b u y i n g a l o a f o f bread o r a bus t i c k e t \u00E2\u0080\u0094 w o u l d n o t n o r m a l l y i n v o l v e an i n d i v i d u a l i n the s u b j e c t i v e w e i g h i n g o f p r o c e s s c o n s i d e r a t i o n s . As d e c i s i o n s become l e s s f a m i l i a r and more complex, however, t h e s i g n i f i c a n c e o f p r o c e s s v a r i a b l e s w i l l g e n e r a l l y i n c r e a s e . Even i f t h e impetus f o r t h e b e h a v i o r i s the same, t h e r e i s a s i g -n i f i c a n t d i f f e r e n c e between the p e r s o n who debate's whether t o save s t r i n g o r p a p er bags i n c a s e t h e y a r e someday needed and the s o c i e t y which d e b a t e s whether t o p r e s e r v e w i l d e r n e s s a r e a s o r t h r e a t e n e d s p e c i e s o f p l a n t s . D e c i s i o n s i n v o l v i n g a p o t e n t i a l l o s s o f l i f e , d e g r a d a t i o n o f h e a l t h o r change i n e n v i r o n m e n t a l q u a l i t y form p a r t o f a l a r g e group o f c h o i c e s which i n d i v i d -u a l s may be asked t o make i n the c o n t e x t o f t h e v a l u a t i o n o r d i s t r i b u t i o n o f a wide range o f non-market goods. In such c a s e s , the p a r t i c u l a r way i n which a q u e s t i o n i s p h r a s e d o r a c h o i c e i s p r e s e n t e d t o an i n d i v i d u a l may g i v e r i s e t o c o s t s o r b e n e f i t s which have l i t t l e o r nothing.'to do w i t h the s p e c i f i c t r a d e - o f f which i s o s t e n s i b l y under c o n s i d e r a t i o n . In f a c t , most a c t i o n s o r c h o i c e s i n v o l v e an i n v i s i b l e c o s t i n t h a t what i s done may i n h i n d s i g h t prove t o be l e s s than p e r f e c t l y c o r r e c t . Thus t h e p e r s o n who s e l l s h i s o r her house j u s t b e f o r e a p r i c e i n c r e a s e f e e l s worse than someone e l s e who, due t o l a c k o f money o r i n i t i a t i v e , s i m p l y l e t s the chance pass by: t h e l o s t o p p o r t u n i t y f o r f i n a n c i a l g a i n i s more e a s i l y imag-i n e d by t h e f i r s t i n d i v i d u a l s i n c e he o r she a c t i v e l y chose a change i n c i r -c umstances. T h i s c h a r a c t e r i s t i c e n c o u r a g e s t h e maintenance o f the s t a t u s quo and enhances t h e p o s s i b i l i t y f o r r e g r e t o r d i s a p p o i n t m e n t which i n t u r n 135 i n c r e a s e s t h e c o s t s a s s o c i a t e d w i t h g i v i n g up r i g h t s t o a r e s o u r c e o r an e x p e r i e n c e . Yet i t i s a l s o t h i s a s p e c t o f many manner v a r i a b l e s which en-c o u r a g e s p o l i t i c i a n s , a d v e r t i s e r s o r i n t e r v i e w e r s t o s t r e s s t h a t i n d e c i s i o n o r i n a c t i v i t y a l s o c o n s t i t u t e s a c h o i c e . As a r e s u l t , any c h i l d who goes hungry o r any s p e c i e s which i s endangered may be p e r c e i v e d as my p e r s o n a l r e s p o n s i b i l i t y and my f a u l t . There e x i s t s a l a r g e gap, however, between c a s u a l d e s c r i p t i o n s o f p o s s i b l e p r o c e s s e f f e c t s and the r i g o r o u s a n a l y s i s o r p r e d i c t i o n o f t h e i r o c c u r r e n c e . L i t t l e e x p e r i m e n t a l e v i d e n c e e x i s t s a t p r e s e n t t o a s s i s t i n the c l a r i f i c a t i o n o f p r o c e s s i n f l u e n c e s . In t h i s s e c t i o n I t h e r e f o r e p r e s e n t t h e r e s u l t s o f two s e r i e s o f e x p e r i m e n t s d e s i g n e d t o t e s t f o r t h e p r e s e n c e o f r e s p o n s i b i l i t y c o s t s and r e g r e t . A f i r s t s e t o f e x p e r i m e n t s compares t h e r e s p o n s e s o f two groups o f p a r t i c i p a n t s who were i n f o r m e d e i t h e r t h a t t h e y had been randomly s e l e c t e d as p a r t o f a s t u d e n t r e s e a r c h p r o j e c t o r t h a t t h e y had been chosen as p a r t o f a s m a l l sample group, w i t h t h e i r r e s p o n s e s perhaps p r o v i d i n g an i n p u t t o t h e f o r m a t i o n o f governmental p o l i c i e s . I f r e s p o n s i -b i l i t y c o s t s a r e s i g n i f i c a n t , r e s p o n d e n t s i n the l a t t e r t e s t s h o u l d be encouraged t o p l a c e a h i g h e r v a l u e on e n v i r o n m e n t a l q u a l i t y . A second group o f e x p e r i m e n t s compares t h e r e l a t i v e a v e r s i v e n e s s o f a number o f d i f f e r e n t u n p l e a s a n t e v e n t s a b o u t which t h e s u b j e c t i s made t o f e e l t h a t he o r she e i t h e r b e a r s no r e s p o n s i b i l i t y o r may be p a r t l y t o blame. In both c a s e s , p r o c e s s c o n s i d e r a t i o n s a r e shown t o s i g n i f i c a n t l y i n f l u e n c e r e s p o n d e n t s ' e x p r e s s e d v a l u e s . T e s t s 48 and 49 ( Q u e s t i o n n a i r e s 3a and 3b; 3c and 3d) These two t e s t s e v a l u a t e p a r t i c i p a n t s ' w i l l i n g n e s s t o pay i n o r d e r t o p r e v e n t , o r t h e i r w i l l i n g n e s s t o a c c e p t compensation i n r e t u r n f o r p e r m i t t i n g , 136 a h y p o t h e t i c a l d e c l i n e i n a v e r a g e a i r q u a l i t y l e v e l s w i t h i n t h e Vancouver a r e a . The t e s t s were c o n d u c t e d on s t u d e n t p o p u l a t i o n s a t t h e U n i v e r s i t y o f B r i t i s h Columbia and a r e i d e n t i c a l i n terms o f d e s c r i p t i v e i n f o r m a t i o n , q u e s t i o n f o r m a t s and payment l e v e l s e x c e p t f o r the i n c l u s i o n o f an i n t r o d u c -t o r y s e n t e n c e which a l t e r s t h e r e s p o n s i b i l i t y c o s t accompanying a p a r t i c i p a n t ' s e x p r e s s i o n o f v a l u e . In one c a s e , t h e r e s p o n d e n t i s i n f o r m e d t h a t he o r she has been s e l e c t e d as p a r t o f a s m a l l sample o f Vancouver a r e a r e s i d e n t s and t h a t the r e s p o n s e s which a r e g i v e n c o u l d \" s e r v e as an i n p u t t o t h e f o r m a t i o n o f G o v e r n m e n t . p o l i c i e s . \" In the low r e s p o n s i b i l i t y v e r s i o n , r e s p o n d e n t s a r e i n s t e a d i n f o r m e d t h a t t h e y have been randomly s e l e c t e d as p a r t o f a l a r g e sample and t h a t t h e i r answers w i l l \" s e r v e as an i n p u t t o a U n i v e r s i t y o f B r i t i s h Columbia s t u d e n t r e s e a r c h p r o j e c t . \" F o l l o w i n g the p r e v i o u s d i s c u s s i o n , i t i s e x p e c t e d t h a t t h e sense o f h i g h e r r e s p o n s i b i l i t y c o s t s which i s c o n -veyed i n the f i r s t v e r s i o n w i l l encourage r e s p o n d e n t s t o i n f l a t e the v a l u e which t h e y p l a c e on t h e maintenance o f h i g h l e v e l s o f a i r q u a l i t y . The r e s u l t s o f t h e e m p i r i c a l t e s t s t e n d t o s u p p o r t t h i s h y p o t h e s i s , a l t h o u g h n e i t h e r i s s t a t i s t i c a l l y s i g n i f i c a n t a t the 5 p e r c e n t l e v e l . Res-ponses to the w i l l i n g n e s s t o pay e x p e r i m e n t , shown i n t e s t 48, a r e most p e r -s u a s i v e . W hile n i n e t e e n o f t h i r t y - t h r e e p a r t i c i p a n t s (58 p e r c e n t ) i n the h i g h r e s p o n s i b i l i t y v e r s i o n were w i l l i n g t o pay a t l e a s t $25.00 t o p r e v e n t a d e c l i n e i n a i r q u a l i t y l e v e l s , o n l y e l e v e n o f t h e t h i r t y p e o p l e q u e s t i o n e d i n t h e low r e s p o n s i b i l i t y t e s t (37 p e r c e n t ) a g r e e d t o pay t h i s amount. V a l u e > $25 V a l u e < $25 T o t a l W i l l i n g t o pay, h i g h 19 14 33 r e s p o n s i b i l i t y W i l l i n g t o pay, low 11 19 30 ( T e s t 48) r e s p o n s i b i l i t y \u00E2\u0080\u00A2 - T o t a l 30 33 63 9 \ = 2.78 137 The r e s u l t s o f the compensation e x p e r i m e n t a r e l e s s s t r o n g but n e v e r -t h e l e s s p r o v i d e a d d i t i o n a l e v i d e n c e t h a t t he p e r c e p t i o n o f r e s p o n s i b i l i t y c o s t s may i n f l u e n c e an i n d i v i d u a l ' s e x p r e s s i o n o f v a l u e . W h i l e ' o n e - t h i r d (33 p e r c e n t , o r 18 o f 54) o f t h o s e q u e s t i o n e d i n the low r e s p o n s i -b i l i t y sample v a l u e d the p o t e n t i a l d e c l i n e i n a i r q u a l i t y l e v e l s a t l e s s t h a n $25.00, o n l y 19 p e r c e n t (6 o f 32) o f t h e p a r t i c i p a n t s i n t h e h i g h r e s p o n s i -b i l i t y e x p e r i m e n t were u n w i l l i n g t o pay $25.00. The x f o r t h i s d i f f e r e n c e i s 2.08, which i s not s i g n i f i c a n t a t the 5 p e r c e n t l e v e l . V a l u e > $25 V a l u e < $25 T o t a l W i l l i n g t o a c c e p t , h i g h 26 6 32 r e s p o n s i b i l i t y W i l l i n g t o a c c e p t , low 36 18 54 ( T e s t 49) r e s p o n s i b i l i t y T o t a l 62 24 86 x 2 = 2.08 T e s t s 50, 5 1 , 52 and 53 ( Q u e s t i o n n a i r e s 5a and 5b; 6a and 6b; 7a, 7b and 7c) Whereas the p r e v i o u s t e s t s e v a l u a t e t h e i n f l u e n c e o f r e s p o n s i b i l i t y c o s t s on p a r t i c i p a n t s ' e v a l u a t i o n o f a non-market r e s o u r c e , t h i s group o f f o u r e x p e r i m e n t s seeks t o i s o l a t e t h e i n f l u e n c e o f r e g r e t . The f o c u s i n t h e p r e s e n t s e t o f e x p e r i m e n t s i s on p a r t i c i p a n t s ' sense o f s e l f - b l a m e f o r n o t h a v i n g t a k e n an a c t i o n a t some time i n t h e p a s t when an o p p o r t u n i t y was a v a i l -a b l e , whereas t h e emphasis i n t h e p r e c e d i n g t e s t s was on t h e a v o i d a n c e o f p o t e n t i a l f u t u r e c o s t s . Regret i s t h e r e f o r e l i n k e d w i t h a l a c k o f i n e v i t a b -i l i t y , and i n g e n e r a l w i l l i n c r e a s e w i t h t h e e x t e n t t o which i t i s b e l i e v e d t h a t a s i t u a t i o n c o u l d have been changed i f d i f f e r e n t a c t i o n s had been under-t a k e n . 138 A l l t h r e e t e s t s employ an a v e r s i v e n e s s s c a l e which was o r i g i n a l l y employed by Kahneman and T v e r s k y ( 1 9 7 9 ) , a l t h o u g h many o f t h e e v e n t s which p a r t i c i p a n t s a r e asked t o e v a l u a t e as w e l l as the p a r t i c u l a r c o n t e x t w i t h i n which r e s p o n s i b i l i t y c o s t s a r e a s s e s s e d were d e v e l o p e d f o r t h e purposes o f t h i s s t u d y . Each e x p e r i m e n t a s k s r e s p o n d e n t s t o s t a t e the a v e r s i v e n e s s o f t e n d i f f e r e n t u n p l e a s a n t e v e n t s by r e c o r d i n g the s t r e n g t h o f t h e i r wish t h a t each n o t happen t o them on an open-ended s c a l e o f 0 t o 20. A r e f e r e n c e e v e n t (\"Having a stomach f l u f o r a week, w i t h nausea and f e v e r \" ) i s p r o v i d e d t o s e r v e as an a n c h o r and a s s i g n e d a s c o r e o f 10. In each c a s e one o f the e v e n t s (always l i s t e d as t h e n i n t h item) was v a r i e d i n o r d e r t o t e s t t he i n f l u e n c e o f a d d i t i o n a l c o s t s a s s o c i a t e d w i t h t h e p r e s e n c e o f r e g r e t . T e s t 50 compares p a r t i c i p a n t s ' r e s p o n s e s t o two q u e s t i o n s . The f i r s t d e s c r i b e d a s i t u a t i o n i n which t h e r e s p o n d e n t r e a d t h a t e n v i r o n m e n t a l q u a l i t y had d e c l i n e d i n Vancouver t o t h e p o i n t t h a t a v e r a g e a i r q u a l i t y l e v e l s were the w o r s t o f any major Canadian c i t y . Each p a r t i c i p a n t t h e n i n d i c a t e d the r e l a t i v e a v e r s i v e n e s s o f t h i s h y p o t h e t i c a l e v e n t . A second v e r s i o n posed the same s i t u a t i o n but added t h a t t h e r e s p o n d e n t * c o u l d have v o t e d f o r the c r e a t i o n o f an \" e n v i r o n m e n t a l q u a l i t y \" t a x i n l a s t y e a r ' s e l e c t i o n s but n e g l e c t e d t o f i l l i n a b a l l o t t h a t day because t h e y were p r e s s e d f o r t i m e . Whereas the mean v a l u e r e c o r d e d i n t h e f i r s t e x p e r i m e n t was 10.7, the mean i n the second t e s t was 13.9. On t h e b a s i s o f a t w o - t a i l e d t - t e s t and a t e s t s t a t i s t i c o f 2.70, we a r e p e r m i t t e d t o c o n f i d e n t l y r e j e c t t h e n u l l h y p o t h e s i s t h a t t h e r e i s no d i f f e r e n c e i n t h e two v e r s i o n s a t a .05 l e v e l o f s i g n i f i c a n c e . P r e s e n c e o f R e g r e t Yes No Number o f r e s p o n d e n t s 44 43 Mean v a l u e 10.7 13.9 ( T e s t 50) S t a n d a r d d e v i a t i o n 5.19 5.42 t = 2.70 139 T e s t 51 employs a s i m i l a r f o r m a t and p r o v i d e s a d d i t i o n a l e v i d e n c e f o r t h e s i g n i f i c a n c e o f r e g r e t i n i n d i v i d u a l s ' e v a l u a t i o n o f non-market r e s o u r c e s . A f i r s t q u e s t i o n s u g g e s t s t h a t t h e development o f new mines and t o w n s i t e s i n n o r t h e r n B r i t i s h Columbia \" i s t h r e a t e n i n g t he c o n t i n u e d s u r v i v a l o f s e v e r a l r a r e s p e c i e s o f l a r g e mammals.\" The t e s t a g a i n i n v e s t i g a t e s whether the r e l a t i v e a v e r s i v e n e s s o f t h i s s i t u a t i o n can be a f f e c t e d by the m a n i p u l a t i o n o f r e s p o n d e n t s ' sense o f r e g r e t r e s u l t i n g from t h e i r f a i l u r e t o r e g i s t e r t h e i r views on the s u b j e c t i n a r e c e n t e l e c t i o n . I f s o , t h e i r e x p r e s s e d w i l l i n g n e s s t o pay would n o t o n l y i n c l u d e v a l u e s a s s o c i a t e d w i t h p r e s e r v a t i o n o f t h e a n i m a l s but a l s o any a d d i t i o n a l c o s t s a s s o c i a t e d w i t h t h e i r d e s i r e t o a v o i d a sense o f r e g r e t . The r e s u l t s o f t h i s e x p e r i m e n t a g a i n emphasize t he s u r p r i s i n g s t r e n g t h o f p r o c e s s c o n c e r n s . Whereas t h e mean v a l u e g i v e n f o r the h i g h r e g r e t ques-t i o n n a i r e was 12.4, t h e mean o f t h e a l t e r n a t i v e v e r s i o n was o n l y 8.8. With a t - s t a t i s t i c o f 2.29, t h e n u l l h y p o t h e s i s \u00E2\u0080\u0094 t h a t t h e r e i s no d i f f e r e n c e i n the two v e r s i o n s \u00E2\u0080\u0094 c a n a g a i n be r e j e c t e d a t a . 0 5 . l e v e l o f s i g n i f i c a n c e . P r e s e n c e o f Re g r e t Yes No Number o f r e s p o n d e n t s 34 25 Mean v a l u e 12.4 8.8 ( T e s t 51) S t a n d a r d d e v i a t i o n 5.60 5.96 t = 2.29 T e s t s 52 and 53 compare t h e r e s u l t s o f p a r t i c i p a n t s ' r e s p o n s e s t o a q u e s t i o n c o n c e r n i n g t h e i r h y p o t h e t i c a l f a i l u r e t o c o n t r i b u t e b l o o d j u s t p r i o r t o a l o c a l a i r c r a s h . A l t h o u g h r e s p o n d e n t s ' d e s i r e t o a v o i d r e g r e t i s v e r y s t r o n g i n t h i s c a s e - - t h e t - s t a t i s t i c f o r the d i f f e r e n c e i n sample means ( t e s t 52) i s 3.32, i n d i c a t i n g t h a t t h e n u l l h y p o t h e s i s can be r e j e c t e d a t a .05 l e v e l o f s i g n i f i c a n c e \u00E2\u0080\u0094 t h e more i n t e r e s t i n g comparison i s between two 140 v e r s i o n s o f t h e t e s t which r e l a t e a p a r t i c i p a n t ' s avowed r e f u s a l t o e i t h e r an i n - p e r s o n o r t e l e p h o n e r e q u e s t f o r a c o n t r i b u t i o n o f b l o o d from a H o s p i t a l v o l u n t e e r . I t was e x p e c t e d t h a t t h e f a c e - t o - f a c e c o n f r o n t a t i o n would i n c r e a s e t h e p e r c e i v e d a v e r s i v e n e s s o f t h e r e f u s a l , and t h i s i s e x a c t l y what i s f o u n d . However, t h e d i f f e r e n c e i n t h e means o f t h e ex p e r i m e n t s - - 1 2 . 1 f o r t h e t e l e p h o n e r e q u e s t compared t o 13.7 f o r the p e r s o n a l a p p e a l \u00E2\u0080\u0094 p r o v i d e s a t e s t s t a t i s t i c 1.37, which i s not s t a t i s t i c a l l y s i g n i f i c a n t a t a . 0 5 . l e v e l . P r e s e n c e o f R e g r e t Yes No Number o f r e s p o n d e n t s 39 38 Mean v a l u e 13.7 9.5 ( T e s t 52) S t a n d a r d d e v i a t i o n 5.13 5.82 t = 3.32 P r e s e n c e o f R e g r e t Yes No Number o f r e s p o n d e n t s 39 37 Mean v a l u e 13.7 12.1 ( T e s t 53) S t a n d a r d d e v i a t i o n 5.13 5.00 t = 1.37 141 CHAPTER VII SURVEY IMPLICATIONS AND FUTURE RESEARCH PRIORITIES The p r e c e d i n g c h a p t e r has p r e s e n t e d e m p i r i c a l e v i d e n c e r e g a r d i n g s i x c l o s e l y r e l a t e d c o n c e r n s which o f t e n a r i s e when a t t e m p t i n g t o measure t h e v a l u e o f goods which a r e not t r a d e d i n c o n v e n t i o n a l m a r k e t s . These t o p i c s range from f a i r l y s p e c i f i c and r e l a t i v e l y w e l l - d e f i n e d phenomena such as a n c h o r i n g e f f e c t s t o more g e n e r a l and p o o r l y d e l i n e a t e d phenomena such as t h e i n f l u e n c e o f p r o c e s s v a r i a b l e s . However, a danger e x i s t s t h a t r a t h e r t h a n c l a r i f y i n g t h e d i m e n s i o n s o f s u g g e s t e d e v a l u a t i o n measures o r a s s i s t i n g i n t h e i r i m p l e m e n t a t i o n , t h e d i s c u s s i o n w i l l i n s t e a d l e a v e the r e a d e r w i t h a sense o f p r e m o n i t o r y f a t i g u e i n the f a c e o f an unmanageable number o f i n t e r -dependent c o n s i d e r a t i o n s . T h i s c h a p t e r t h e r e f o r e a t t e m p t s t o d e f i n e a number o f t h e major r e s e a r c h c o n c e r n s and a l s o i n v e s t i g a t e s some o f the b r o a d e r i m p l i c a t i o n s o f t h e e x p e r i m e n t a l e v i d e n c e . D e f i n i t i v e s t a t e m e n t s w i l l r a r e l y be f o r t h c o m i n g , which t e s t i f i e s t o both t h e c o n t e n t i o u s n e s s and the c o m p l e x i t y o f the i s s u e s a t hand. Emphasis i s i n s t e a d p l a c e d on t h e c o n t r i b u t i o n which t h i s s t u d y has made t o an improved u n d e r s t a n d i n g o f each a r e a o f c o n c e r n and on how l e s s o n s g a i n e d i n the c o u r s e o f t h i s work can h e l p p o i n t the way t o f u r t h e r r e s e a r c h o p p o r t u n i t i e s . Two p r i n c i p a l q u e s t i o n s w i l l be a d d r e s s e d . The f i r s t i s c o n c e r n e d w i t h t h e o b s e r v e d d i s p a r i t y between measures o f v a l u e based on an i n d i v i d u a l ' s w i l l i n g n e s s t o pay f o r a good and measures which r e f l e c t a p e r s o n ' s w i l l i n g -ness t o a c c e p t compensation i n r e t u r n f o r the l o s s o f a good. A second 142 s e c t i o n e x p l o r e s t h e c a s e f o r u s i n g h y p o t h e t i c a l q u e s t i o n s , and c h a r a c t e r i z e s a number o f c i r c u m s t a n c e s i n which c o n t i n g e n t v a l u a t i o n a p proaches a r e l i k e l y t o be n e c e s s a r y . Some o f t h e m a j o r c o n c e r n s which a r i s e when a s k i n g hypothe-t i c a l q u e s t i o n s a r e then d i s c u s s e d . Taken as a whole, t h e s e two s e c t i o n s seek t o c l a r i f y what i s and what i s not known about a number o f the key c o n -c e r n s which a r i s e i n m e a s u r i n g t h e v a l u e o f non-market goods. . I t i s hoped t h a t t h e a n a l y s i s w i l l encourage a c l o s e r e x a m i n a t i o n o f t h e b e h a v i o r a l a s s u m p t i o n s and d e c i s i o n c r i t e r i a which l i e b e h i n d i n d i v i d u a l s ' e x p r e s s e d p r e f e r e n c e s f o r non-market goods. DISPARITIES IN PAYMENT AND COMPENSATION MEASURES OF VALUE C h a p t e r II r e v i e w s t h e t h e o r e t i c a l arguments f o r the a n t i c i p a t e d e q u i v a l e n c e o f w i l l i n g n e s s t o pay and compensation demanded measures o f v a l u e ( o r , i n t h e c a s e o f non-market goods, e q u i v a l e n t and compensating v a r i a t i o n measures o f consumer's s u r p l u s ) . So l o n g as income e f f e c t s a r e s m a l l and the p r o p o s e d change i n t h e p r i c e o r q u a n t i t y o f the i t e m i s i n s i g n i f i c a n t r e l a t i v e t o an i n d i v i d u a l ' s t o t a l r e a l w e a l t h , then d i f f e r e n c e s i n the two a p p r o a c h e s a r e e x p e c t e d t o be n e g l i g i b l e . C h a p t e r II a l s o r e v i e w s a number o f c o n t r a s t i n g s t u d i e s which p r o v i d e e m p i r i c a l e v i d e n c e t h a t a d i s p a r i t y i n payment and c o m p e n s a t i o n measures i s n o t o n l y f r e q u e n t l y e n c o u n t e r e d but t h a t i t i s o f t e n o f s u b s t a n t i a l magnitude. In some o f t h e s e s t u d i e s r e s e a r c h e r s had a n t i c i p a t e d t h a t a d i f f e r -ence might be o b s e r v e d , and t h e i r e x p e r i m e n t a l r e s u l t s c o n f i r m e d a view t h a t b e f o r e h a n d seemed p l a u s i b l e . F o r t h i s g r oup, the e m p i r i c a l r e s p o n s e s a r e f e l t t o be b a s i c a l l y c o r r e c t and t h e c o n v e n t i o n a l t h e o r y e i t h e r wrong o r , a t b e s t , i n c o m p l e t e . O t h e r i n d i v i d u a l s a p p e a r t o have been d i s t u r b e d by the magnitude o f v a r i a t i o n between e x p r e s s e d payment and compensation v a l u e s which 143 was i n d i c a t e d by t h e i r r e s u l t s . T h i s group o f r e s e a r c h e r s have m a i n t a i n e d t h a t t h e t h e o r y i s b a s i c a l l y c o r r e c t and the e r r o r i n s t e a d l i e s w i t h some i n t r a n s i g e n t a s p e c t o f e x p e r i m e n t a l p r o c e d u r e s o r s u r v e y d e s i g n . N e i t h e r g r o u p , however, has been a b l e t o d e v e l o p a t h e o r e t i c a l frame-work which s a t i s f a c t o r i l y i n t e r p r e t s t h e i r r e s u l t s . While s e v e r a l e x p l a n a -t i o n s f o r the d i s p a r i t y have been a d v a n c e d \u00E2\u0080\u0094 f o r example, the endowment e f f e c t p r oposed by T h a l e r (1980) o r s u b t l e i n f l u e n c e s o f income and w e a l t h e f f e c t s \u00E2\u0080\u0094 t h e y remain p a r t i a l , and i f f a i t h i n t h e e m p i r i c a l e v i d e n c e i s j u s t i f i e d a more complete r a t i o n a l e f o r o b s e r v e d d i f f e r e n c e s i n t h e measures i s r e q u i r e d . S i m i l a r l y , a number o f t h o u g h t f u l arguments f o r t h e e q u i v a l e n c e o f payment and compensation a p p r o a c h e s have been m a d e \u00E2\u0080\u0094 f o r example, the d i s -c u s s i o n s o f W i l l i g (1976) o r B i s h o p and H e b e r l e i n ( 1 9 7 9 ) \u00E2\u0080\u0094 b u t t h e y t e n d t o t r e a t s i t u a t i o n s o f l i m i t e d r e l e v a n c e ( s u c h as where p r i c e changes a r e s m a l l ) and i g n o r e some i m p o r t a n t c o n s i d e r a t i o n s . The t e s t s which have been c o n d u c t e d as p a r t o f t h i s s t u d y f i r m l y s u p p o r t t h e h y p o t h e s i s t h a t s u b s t a n t i a l l y \" - m o r e compensation w i l l be demanded i n exchange f o r a good which i s c o n s i d e r e d t o be a l r e a d y i n one's p o s s e s s i o n t h a n would u s u a l l y be p a i d t o r e t a i n o r t o o b t a i n the same good. The e v i d -ence d e m o n s t r a t e s t h a t t h e two measures o f v a l u e do not y i e l d e q u i v a l e n t r e s p o n s e s , and the s t r e n g t h o f s t a t i s t i c a l t e s t s o f the d i f f e r e n c e p r e s e n t s a c o n v i n c i n g argument t h a t the d i s p a r i t y i s both p e r v a s i v e and s u b s t a n t i a l . Two q u e s t i o n s must t h e r e f o r e be a d d r e s s e d . F i r s t , why t h e d i s p a r i t y : what d i f f e r e n c e s i n the two measures c r e a t e the c o n s i s t e n t v a r i a t i o n i n r e s p o n s e ? Second, what a r e the i m p l i c a t i o n s : can the e m p i r i c a l r e s u l t s t e l l us a n y t h i n g about t h e c o n d i t i o n s under which one measure w i l l p r o v i d e a more a c c u r a t e g u i d e t o p o t e n t i a l changes i n w e l f a r e ? 144 Reasons f o r the D i s p a r i t y Some i n f o r m a t i o n on t h e f i r s t q u e s t i o n can be d e r i v e d from a c l o s e r l o o k a t r e s p o n s e s t o t h e e x p e r i m e n t s c o n d u c t e d as p a r t o f t h i s and p r e v i o u s s t u d i e s . A l t h o u g h t h e e v i d e n c e i s s u g g e s t i v e r a t h e r t h a n c o n c l u s i v e , f o u r c l o s e l y r e l a t e d f a c t o r s appear t o e x e r t a p a r t i c u l a r l y s i g n i f i c a n t i n f l u e n c e on b o t h the f r e q u e n c y and the magnitude o f the d i s p a r i t y . These a r e the s i z e o f t h e good o r payment l e v e l s under c o n s i d e r a t i o n , t h e a v a i l a b i l i t y o f sub-s t i t u t e s , t h e p e r c e i v e d l e g i t i m a c y o f the t r a n s a c t i o n , and the p r e s e n c e o f r e s p o n s i b i l i t y c o s t s , r e g r e t o r o t h e r p r o c e s s c o n s i d e r a t i o n s . Each w i l l be c o n s i d e r e d i n t u r n . S i z e . C h a p t e r VI r e p o r t e d the r e s u l t s o f t h r e e c l o s e d - e n d e d e x p e r i m e n t s which a s s e s s e d t h e v a l u e p l a c e d on a l o t t e r y t i c k e t g i v i n g the p a r t i c i p a n t s a o n e - i n t h i r t y chance t o win a c a l c u l a t o r . The t e s t s employed t h r e e d i f f e r e n t d o l l a r amounts, r a n g i n g from $0.20 t o $1.00, w i t h t h e e x p e c t e d v a l u e o f t h e exchange a p p r o x i m a t e l y equal t o the $0.60 m i d p o i n t o f t h i s range. U n f o r t u n a t e l y , t h e e x p e r i m e n t s were not d e s i g n e d t o c o l l e c t i n f o r m a t i o n on the a b s o l u t e s i z e o f t h e d i s p a r i t y between payment and c o m p e n s a t i o n measures o f v a l u e . However, p a r t i c i p a n t s ' r e s p o n s e s c o n s i s t e n t l y d e m o n s t r a t e d t h a t d i f f e r e n c e s between t h e two a p p r o a c h e s became more r e l i a b l e i n d i r e c t p r o p o r t i o n t o the d o l l a r amount employed i n t h e e x p e r i m e n t s . S i m i l a r r e s u l t s were o b t a i n e d i n t e s t s o f s t u d e n t s ' w i l l i n g n e s s t o pay o r a c c e p t c o m p e n s a t i o n f o r proposed changes i n r e g i o n a l a i r q u a l i t y . The q u e s t i o n n a i r e s p r o v i d e d i n f o r m a t i o n a t t h r e e d i f f e r e n t payment l e v e l s - - s i n c e p a r t i c i p a n t s were p r e s e n t e d w i t h an i n i t i a l v a l u e and t h e n , d e p e n d i n g on t h e i r r e s p o n s e , moved on t o e i t h e r a h i g h e r o r lower a m o u n t \u00E2\u0080\u0094 a n d the o b s e r v e d d i f f e r e n c e s i n payment and compensation a p p r o a c h e s were s t a t i s t i c a l l y s i g n i f i -c a n t o n l y when l a r g e r amounts were p a i d o r r e c e i v e d . In most c a s e s , no 145 d i f f e r e n c e s were o b s e r v e d a t $5.00 o r $10.00 payment l e v e l s w h i l e d i f f e r e n c e s i n t h e a p p r o a c h e s when $25.00 was t o be p a i d o r r e c e i v e d were s t a t i s t i c a l l y s i g n i f i c a n t a t the f i v e p e r c e n t l e v e l . Comparable r e s p o n s e s were a l s o ob-t a i n e d i n t e s t s a t t h e P r o v i n c i a l Museum u s i n g lower d o l l a r amounts but a p a r a l l e l q u e s t i o n f o r m a t . In each o f t h e s e c a s e s t h e good o r e x p e r i e n c e under c o n s i d e r a t i o n remained the same and the magnitude o f t h e p r o p o s e d payment v a r i e d . I t i s e x p e c t e d t h a t a s i m i l a r r e l a t i o n would be o b s e r v e d i f the v a l u e o f the good i n q u e s t i o n were t o v a r y and the l e v e l o f payment i n s t e a d remained the same. F o l l o w i n g e a r l i e r d i s c u s s i o n s , i t may w e l l be t h a t s i z e a f f e c t s the d i s p a r i t y i n p a r t t h r o u g h an endowment e f f e c t , w i t h more h i g h l y v a l u e d goods g e n e r a l l y f o r m i n g a more s i g n i f i c a n t p a r t o f a /person's o v e r a l l a s s e t \" p o s i t i o n . T h i s , h y p o t h e s i s s h o u l d be r e l a t i v e l y e a s y t o t e s t , perhaps u s i n g l o t t e r y exchanges t o d e t e r m i n e t h e s i z e o f the d i s p a r i t y i n r e l a t i o n t o comparable b u n d l e s o f goods which can unambiguously be r a n k e d i n terms o f i n c r e a s i n g v a l u e . L e g i t i m a c y . D i f f e r e n c e s i n w i l l i n g n e s s t o pay and compensation demanded measures o f v a l u e have now been examined i n a wide v a r i e t y o f c o n t e x t s . T e s t s which have been c a r r i e d out i n the c o u r s e o f t h i s s t u d y , f o r example, compare p r i c e s when p u r c h a s i n g and r e l i n q u i s h i n g l o t t e r y t i c k e t s f o r a c a l c u l a t o r , changes i n e n v i r o n m e n t a l q u a l i t y , t h e a t r e s e a t s , u m b r e l l a s , p o s i t i o n s i n a queue, e n t r a n c e t o a Museum, and a v a r i e t y o f f o o d s . Some o f the e a r l i e r e x p e r i m e n t s by o t h e r r e s e a r c h e r s i n v e s t i g a t e the v a l u e o f r e c r e a t i o n a l h u n t i n g and f i s h i n g o p p o r t u n i t i e s , a l u n c h , t h e l o c a l p o s t a l s e r v i c e , a t e l e v i s i o n program, p a r k l a n d s , and a d m i s s i o n t o a l i b r a r y . An e q u a l l y wide range o f e m p i r i c a l r e s u l t s have been o b t a i n e d : i n some c a s e s the r e s p o n s e s o f both groups a r e s i m i l a r and d i f f e r e n c e s i n payment and compensation measures o f v a l u e a r e s m a l l , w h i l e i n o t h e r s i t u a t i o n s both t h e magnitude o f the d i s p a r i t y - -146 as much as t e n - f o l d and m o r e \u00E2\u0080\u0094 a n d the p r o p o r t i o n o f r e s p o n d e n t s who r e f u s e t o p a r t i c i p a t e i n the compensation t e s t a r e d r a m a t i c a l l y l a r g e . A r e v i e w o f t h e s e v a r i e d r e s p o n s e s s u g g e s t s t h a t the l e g i t i m a c y o f t h e t r a n s a c t i o n , i n t h e sense o f the normalcy o r f a m i l i a r i t y o f the exchange, c o n s t i t u t e s a s i g n i f i c a n t c o n c e r n . P e o p l e a p p e a r t o be q u i t e c o m f o r t a b l e when p a y i n g f o r , and sometimes a l s o when r e l i n q u i s h i n g , t h e a t r e s e a t s o r l u n c h e s ; t h e y become much l e s s c o m f o r t a b l e when what t h e y a r e b e i n g asked t o p u r c h a s e , and even more so t o g i v e up, i n f l u e n c e s t h e i r h e a l t h o r the q u a l i t y o f the e n v i r o n m e n t . Some o f t h i s unease has t o do w i t h c o n s i d e r a t i o n s o f s i z e o r r e s p o n s i b i l i t y , which a r e d i s c u s s e d e l s e w h e r e i n t h i s s e c t i o n . But a t l e a s t i n c e r t a i n c a s e s much o f i t may a l s o d e r i v e from t h e f a c t t h a t t r a n s a c t i o n s o f t h i s n a t u r e may be u n f a m i l i a r and a r e not c o n s i d e r e d t o be a r e g u l a r , normal o r even e t h i c a l t h i n g t o do. E v i d e n c e i n s u p p o r t o f t h i s h y p o t h e s i s has been o b t a i n e d from a number o f t h e e x p e r i m e n t s c o n d u c t e d as p a r t o f t h i s s t u d y . F o r example, many o f the i n d i v i d u a l s who were asked t o s t a t e the minimum t a x d e c r e a s e which would j u s t compensate them f o r a d e c l i n e i n l o c a l a i r q u a l i t y l e v e l s e i t h e r r e f u s e d t o p a r t i c i p a t e i n t h e s u r v e y o r r e q u i r e d a v e r y h i g h l e v e l o f c o mpensation. As r e p o r t e d i n C h a p t e r V I , o n l y t h i r t e e n o f the f o r t y - s i x i n d i v i d u a l s who were as k e d the open-ended v e r s i o n o f the q u e s t i o n r e p o r t e d a s p e c i f i c monetary v a l u e , and t h e i r mean l e v e l o f compensation demanded was n e a r l y $2,000.00 per p e r s o n . Twenty r e s p o n d e n t s (43 p e r c e n t o f t h o s e q u e s t i o n e d ) e x p l i c i t l y r e f u s e d t o a c c e p t any amount o f monetary compensation i n exchange f o r de-c r e a s e d l e v e l s o f e n v i r o n m e n t a l q u a l i t y , w h i l e t h e r e m a i n i n g t h i r t e e n p a r t i c i -p a n ts s i m p l y l e f t t h e q u e s t i o n b l a n k . S i m i l a r r e s u l t s were o b t a i n e d i n the s u r v e y s c o n d u c t e d a t t h e P r o v i n c i a l Museum. F o r example, s e v e n t e e n o f twenty-one p e r s o n s (81 p e r c e n t ) s t a t e d t h a t t h e y were u n w i l l i n g t o a c c e p t any l e v e l 147 o f t a x r e l i e f i n t r a d e f o r the p o s s i b l e c l o s u r e o f t h e Museum, and s e v e r a l i n d i v i d u a l s were p l a i n l y o f f e n d e d by t h e n a t u r e o f the s u g g e s t e d exchange. These r e s u l t s a r e n o t une x p e c t e d . F or example, both R a n d a l l e t a l . (1974) and Rowe e t al_. (1980) r e p o r t e d t h a t a p p r o x i m a t e l y 50 p e r c e n t o f t h o s e i n t e r v i e w e d r e f u s e d t o c o o p e r a t e when asked t o s t a t e t he minimum l e v e l o f compensation t h a t t h e y would a c c e p t i n r e t u r n f o r d e c l i n e s i n a i r q u a l i t y . However, most e a r l i e r s t u d i e s viewed t he h i g h r a t e s o f non-response as p r o v i d -i n g a r a t i o n a l e f o r u s i n g payment q u e s t i o n s as a measure o f v a l u e . The q u e s t i o n o f t h e l e g i t i m a c y o f the pr o p o s e d exchange, and the p o s s i b i l i t y t h a t t h i s g e n e r a l t y p e o f e v a l u a t i o n q u e s t i o n s h o u l d not be asked i n some c i r c u m -s t a n c e s , was c o n v e n i e n t l y i g n o r e d . The r e s u l t s o f t h i s s t u d y s u g g e s t t h a t i n o n l y a few c a s e s would t he l e g i t i m a c y o f an exchange be symmetric w i t h . r e s p e c t ' t o \" t h e two t y p e s o f t r a n s -a c t i o n . For example, both b u y i n g and s e l l i n g books o r a c a r might c o n s t i t u t e f a m i l i a r exchanges i n which most p e o p l e have engaged a t one time o r a n o t h e r . S i m i l a r l y , t h e p o s s i b i l i t y o f p u r c h a s i n g o r s e l l i n g t i c k e t s t o a r a f f l e , c o n c e r t , o r s p o r t s e v e n t i s e a s i l y u n d e r s t o o d , a l t h o u g h i n t h e s e c a s e s t he s e l l i n g a l t e r n a t i v e may be viewed d i f f e r e n t l y due t o the s e m i - i l l e g i t i m a t e r o l e p l a y e d by s c a l p e r s and o t h e r s who engage i n r e - s e l l i n g f o r a p r o f i t . In most s i t u a t i o n s , however, the two a l t e r n a t i v e s w i l l n ot be viewed as e q u a l l y l e g i t i m a t e p r o p o s a l s . In some c a s e s t h i s has t o do w i t h t h e n a t u r e o f t he good under c o n s i d e r a t i o n . F or example, b u y i n g and s e l l i n g a r e gen e r -a l l y n o t e q u i v a l e n t i n the c o n t e x t o f v a l u i n g e n v i r o n m e n t a l q u a l i t y o r human h e a l t h , s i n c e t he a c t o f p a y i n g f o r t h e s e s e r v i c e s ( t h r o u g h t a x e s , m e d i c a l p l a n c o n t r i b u t i o n s , s a f e t y equipment and the l i k e ) i s u s u a l but the a c t o f r e l i n q u i s h i n g them i s n o t . S i m i l a r l y , p a y i n g an e n t r a n c e f e e t o v i s i t a Park o r a Museum which i s c u r r e n t l y f r e e i s c o n s i s t e n t w i t h e s t a b l i s h e d s t a n d a r d s 148 o f b e h a v i o r , whereas t h e p o s s i b i l i t y o f r e c e i v i n g compensation f o r t h e i r l o s s i s a novel and f r e q u e n t l y b a f f l i n g n o t i o n t o p e o p l e who may n e v e r have con-s i d e r e d t h e s e goods to be t h e i r s i n the f i r s t p l a c e . The n a t u r e o f the good--c h i l d r e n , a p l a c e o f w o r s h i p , freedom--may a l s o be such t h a t , once compensa-t i o n has been e s t a b l i s h e d as t h e p r o p e r measure o f v a l u e , s e t t i n g any p a r t i c u l a r d o l l a r amount i n exchange f o r i t s l o s s i s seen as u n n a t u r a l o r immoral: the b a s i s o f the exchange i t s e l f i s c o n s i d e r e d t o be i l l e g i t i m a t e . In o t h e r c a s e s i t i s l i k e l y t h a t a l a c k o f l e g i t i m a c y d e r i v e s from the c o n d i t i o n s under which an exchange t a k e s p l a c e . F o r example, even though I am aware t h a t some f a m i l i a r good--a sandwich o r a p a i r o f s h o e s - - i s commonly bought and s o l d , s e l l i n g a sandwich I've b r ought f o r l u n c h o r s e l l i n g a p a i r o f shoes which I'm w e a r i n g a t t h e t ime a r e l i k e l y t o be c o n s i d e r e d i l l e g i t i -mate t r a n s a c t i o n s i n the sense o f b e i n g o u t s i d e e s t a b l i s h e d s o c i a l norms. They may c o n s t i t u t e normal a c t i v i t i e s f o r o t h e r p e o p l e who do them as a v o c a t i o n , but I am n o t n o r m a l l y i n t h e b u s i n e s s o f a c c e p t i n g monetary payments i n exchange f o r my l u n c h o r my c l o t h i n g . In many c a s e s an i n a p p r o p r i a t e o r even p e r v e r s e measure o f r e l a t i v e v a l u e s might be o b t a i n e d . For example, I may be w i l l i n g t o pay $x f o r some o r d i n a r y i t e m - - a s h i r t - - a n d a g r e e t o s e l l i t f o r e i t h e r the same p r i c e ( i f a p e r f e c t s u b s t i t u t e were r e a d i l y a v a i l a b l e ) o r a s u b s t a n t i a l l y h i g h e r amount ( i f s u b s t i t u t e s were u n a v a i l a b l e o r i f t h i s p a r t i c u l a r s h i r t were e s p e c i a l l y m e a n i n g f u l ) . However, I may a l s o r e f u s e t o s e l l i t a t any p r i c e \u00E2\u0080\u0094 b e c a u s e s e l l i n g my s h i r t s i s n o t s omething I do--but r e a d i l y g i v e i t away f o r f r e e f o r h u m a n i t a r i a n o r c h a r i t a b l e r e a s o n s . In such c a s e s , the fundamental i l l e g i t i -macy o f t h e t r a n s a c t i o n means t h a t a measure o f t h e worth o f a good based on the compensation I demand f o r i t s l o s s c o u l d i n d i c a t e e i t h e r an i n f i n i t e o r no v a l u e . 149 These examples d e m o n s t r a t e t h a t f u r t h e r r e s e a r c h i s r e q u i r e d i n o r d e r t o d i f f e r e n t i a t e between a number o f c i r c u m s t a n c e s which c o u l d g i v e r i s e t o t h e p e r c e p t i o n t h a t an exchange i s not l e g i t i m a t e . I f i t i s due t o the c o n -t e x t w i t h i n which a t r a n s a c t i o n i s p r e s e n t e d , a change i n w o rding o r a s h i f t i n t he e x p e r i m e n t a l s e t t i n g may s o l v e the problem. I f a l a c k o f l e g i t i m a c y i s due t o t h e n o v e l t y o f a p r oposed t r a n s a c t i o n , then the i n c l u s i o n o f a d d i -t i o n a l i n f o r m a t i o n , r e t e s t i n g a t a l a t e r t ime o r t h e d e s c r i p t i o n o f o t h e r s i m i l a r s i t u a t i o n s may prove h e l p f u l . I f a l a c k o f l e g i t i m a c y a r i s e s because o f t h e n a t u r e o f t h e good under c o n s i d e r a t i o n , t h e n an u n d e r s t a n d i n g o f i t s r e l e v a n t c h a r a c t e r i s t i c s s h o u l d a l l o w t h e i n a p p r o p r i a t e n e s s o f a compensation measure t o be p r e d i c t e d i n advance. Some i m p l i c a t i o n s o f t h e s e q u e s t i o n s w i l l be c o n s i d e r e d i n more d e t a i l as p a r t o f t h e second s e c t i o n o f t h i s c h a p t e r . S u b s t i t u t e s . A t h i r d f a c t o r has t o do w i t h t h e p e r c e i v e d o r a c t u a l a v a i l a -b i l i t y o f s u b s t i t u t e s f o r t h e good o r e x p e r i e n c e under c o n s i d e r a t i o n . T h r e e d i f f e r e n t t y p e s o f goods were used i n the e x p e r i m e n t a l t e s t s o f payment and c o m p e n s a t i o n measures o f v a l u e r e p o r t e d i n the f i r s t s e c t i o n o f C h a p t e r V I : changes i n a i r q u a l i t y l e v e l s , t h e P r o v i n c i a l Museum, and a l o t t e r y t i c k e t f o r an e l e c t r o n i c c a l c u l a t o r . W hile t i c k e t s f o r a l a r g e number o f o t h e r l o t t e r i e s can be r e a d i l y p u r c h a s e d and one low p r i c e d c a l c u l a t o r i s much l i k e any o t h e r , many v i s i t o r s would c o n s i d e r t h e P r o v i n c i a l Museum t o be a u n ique a t t r a c t i o n and t h e r e f o r e w i t h o u t s u b s t i t u t e s . The p r o p o s e d change i n a i r q u a l i t y would p r o b a b l y be viewed as i n t e r m e d i a t e i n terms o f u n i q u e n e s s , not because t h e r e a r e s u b s t i t u t e s f o r a i r but because i n c r e m e n t a l moves between l e v e l s o f a i r q u a l i t y would be d i f f i c u l t t o d i s t i n g u i s h . I f t h e a v a i l a b i l i t y o f good s u b s t i t u t e s r e d u c e s t h e magnitude o f t h e d i s p a r i t y between w i l l i n g n e s s t o pay and compensation demanded measures o f v a l u e , then d i f f e r e n c e s between t h e two v e r s i o n s o f the l o t t e r y e x p e r i m e n t s 150 s h o u l d l e s s f r e q u e n t l y be s i g n i f i c a n t than when t h e o t h e r goods were t e s t e d . T h i s i s c o n s i s t e n t w i t h t h e r e s u l t s which were o b t a i n e d : o n l y two o f the seven l o t t e r y t e s t s were s t a t i s t i c a l l y s i g n i f i c a n t a t the f i v e p e r c e n t l e v e l as compared t o f i v e o f t h e s i x c omparisons o f a i r q u a l i t y measures and both o f the Museum e x p e r i m e n t s . F o l l o w i n g t h i s l i n e o f t h o u g h t , both payment and compensation measures o f v a l u e f o r an e a s i l y r e c o g n i z a b l e good w i t h p e r f e c t s u b s t i t u t e s \u00E2\u0080\u0094 f o r example, a $5.00 b i 11 - - s h o u l d be equal'. A p e r s o n ' s w i l l i n g n e s s t o pay and c o mpensation demanded f o r goods which a r e p e r c e i v e d t o be u n i q u e , however, s h o u l d d i f f e r s i g n i f i c a n t l y : the amount t h a t I would pay t o keep my c i t i z e n -s h i p , my h e a l t h o r my c h i l d r e n i s f a r l e s s than t h e amount I would demand as c ompensation were I t h r e a t e n e d w i t h t h e i r l o s s . These a r e extreme examples, but t h e r e s u l t s o f o t h e r e x p e r i m e n t s s u g g e s t t h a t the q u e s t i o n o f s u b s t i t u t e s may f r e q u e n t l y prove t o be i m p o r t a n t . In d i s c u s s i n g the r e s u l t s o f an e x p e r i -ment i n which p a r t i c i p a n t s were a s k e d t o buy o r s e l l a l t e r n a t i v e l u n c h o f f e r i n g s , f o r example, Kn e t s c h (1981) s u g g e s t e d t h a t the o b s e r v e d d i v e r g e n c e i n the measures was p r o b a b l y m i n i m i z e d by t h e r e a d y a v a i l a b i l i t y o f a wide range o f s u b s t i t u t e l u n c h o f f e r i n g s . T h i s h y p o t h e s i s c o u l d be t e s t e d t o see i f s i m i l a r s i t u a t i o n s i n which s u b s t i t u t e s were l e s s a v a i l a b l e would y i e l d d i f f e r e n c e s i n payment and compen-s a t i o n measures o f v a l u e e x c e e d i n g K n etsch's o b s e r v e d d i s p a r i t y o f a p p r o x i -m a t e l y 30 p e r c e n t . E x p e r i m e n t s c o u l d a l s o be d e s i g n e d t o t e s t d i f f e r e n c e s i n t h e e x p r e s s e d v a l u e o f r e c r e a t i o n a l h u n t i n g o r f i s h i n g o p p o r t u n i t i e s , w i t h q u e s t i o n s r e g a r d i n g , p r oposed changes i n s p e c i f i c l o c a l a r e a s o r a f f e c t i n g s i n g l e s p e c i e s e x p e c t e d t o show a s m a l l e r d i s p a r i t y than changes which would e f f e c t a l a r g e r r e g i o n o r s e v e r a l s p e c i e s . 151 P r o c e s s c o n s i d e r a t i o n s . E x p e r i m e n t a l e v i d e n c e c o n c e r n i n g t h e i n f l u e n c e o f p r o c e s s c o n s i d e r a t i o n s has been p r e s e n t e d i n t h e p r e c e d i n g c h a p t e r , which l o o k e d a t t h e r o l e o f r e s p o n s i b i l i t y and r e g r e t i n t h e v a l u a t i o n o f non-market goods. The d i s c u s s i o n s t r e s s e d t h a t p r o c e s s c o n s i d e r a t i o n s c o n s t i t u t e t r u e c o s t s , s i n c e an i n d i v i d u a l ' s sense o f r e g r e t o r g u i l t a s s o c i a t e d w i t h t h e d e g r a d a t i o n o f a w i l d e r n e s s e n v i r o n m e n t o r a p r e v e n t a b l e l o s s o f l i f e r e p r e s e n t s a r e a l component o f v a l u e , but t h a t t h e y a r e c o n s i d e r a t i o n s which a r e p a r t i c u l a r l y s u s c e p t i b l e t o changes i n c o n t e x t and a r e t h e r e f o r e e a s i l y b i a s e d o r open t o m a n i p u l a t i o n . In p a r t i c u l a r , the argument was p r e s e n t e d t h a t the more e a s i l y a p r e f e r r e d a l t e r n a t i v e can be i m a g i n e d , t h e g r e a t e r i s t h e p o t e n t i a l f o r f u t u r e r e g r e t . Doing something i s t h e r e f o r e more l i k e l y t o i n v o l v e p s y c h i c c o s t s t h a n d o i n g n o t h i n g , because a l t e r n a t i v e s t o t a k i n g a c t i o n a r e more e a s i l y i m a g i n e d . P r o c e s s c o n s i d e r a t i o n s may p r o ve t o be e x t r e m e l y i m p o r t a n t i n e x p l a i n -i n g t h e v a r i a t i o n i n measures o f an i n d i v i d u a l ' s w i l l i n g n e s s t o pay f o r a non-market good and a p e r s o n ' s w i l l i n g n e s s t o a c c e p t compensation i n r e t u r n f o r i t s l o s s . As s t r e s s e d by t h e endowment e f f e c t , t h e d e c i s i o n t o p u r c h a s e a good which i s n o t c u r r e n t l y owned i s d i f f e r e n t from the d e c i s i o n t o s e l l a good c o n s i d e r e d t o be p a r t o f one's e n t i t l e m e n t . P r o c e s s c o n s i d e r a t i o n s h e l p t o e x p l a i n Why t h i s i s s o , s i n c e i f I choose t o a c c e p t an o f f e r o f compensa-t i o n and s u b s e q u e n t l y d e c i d e t h a t I was wrong o r am c r i t i c i z e d by o t h e r s f o r my a c t i o n , i t i s l i k e l y t h a t I w i l l then blame m y s e l f o r f e e l e mbarrassed. I f I a n t i c i p a t e the p o s s i b i l i t y t h a t t h e s e c o n s i d e r a t i o n s may a r i s e , I w i l l make them a p a r t o f my c u r r e n t e v a l u a t i o n o f c o s t s and e i t h e r i n c r e a s e the p r i c e a t which I w i l l a g r e e t o s e l l o r r e f u s e t o p a r t i c i p a t e i n t h e exchange. T h i s t y p e o f r e a c t i o n appeared i n both t h e e n v i r o n m e n t a l q u a l i t y and the Museum s u r v e y s , i n which a m a j o r i t y o f r e s p o n d e n t s t o s e v e r a l o f the compensa-152 t i o n q u e s t i o n s e i t h e r demanded e x t r e m e l y h i g h s e t t l e m e n t s o r s i m p l y r e f u s e d t o g i v e up c u r r e n t r i g h t s o f use. In the same s e n s e , I may r a t i o n a l l y c a r e v e r y l i t t l e a bout e n v i r o n -mental q u a l i t y and be u n w i l l i n g t o make even a s m a l l payment to m a i n t a i n p r e s e n t s t a n d a r d s but s t i l l r e f u s e t o a c c e p t a s u b s t a n t i a l l y h i g h e r sum o f f e r e d as c o m p e n s a t i o n f o r a d e c l i n e i n c u r r e n t l e v e l s . A l t h o u g h t h e s u r v e y s c o n d u c t e d as p a r t o f t h i s s t u d y o n l y a sked i n d i v i d u a l s one o r the o t h e r o f t h e s e a l t e r n a t i v e s , the a v e r a g e r e s p o n s e s t h a t were o b t a i n e d d e m o n s t r a t e t h a t t h i s p o s i t i o n i s c h a r a c t e r i s t i c o f most p a r t i c i p a n t s . In the f i r s t c a s e , I can a v o i d an e m o t i o n a l o r p s y c h o l o g i c a l a t t a c h m e n t t o t h e e v e n t u a l c o n s e -quences by r e f e r r i n g t o a l a r g e number o f c o n s t r a i n t s (income, t i m e , knowledge o f t h e i m p a c t s , e t c . ) : i t i s someone e l s e ' s problem and I choose not t o become i n v o l v e d . In t h e c o m p e n s a t i o n a l t e r n a t i v e , however, I c a n n o t escape c o m p l i c i t y s i n c e by a c c e p t i n g t h e terms o f the t r a d e I have i n e f f e c t g i v e n my p e r m i s s i o n f o r the change. The h i g h e r amount o f compensation i s t h e r e f o r e demanded t o h e l p q u i e t my f e a r t h a t some p a r t o f the consequences has t h e r e b y become my r e s p o n s i b i l i t y . As a r e s u l t , any q u e s t i o n which i s worded so as t o emphasize t h e p o s s i b i l i t y o f f u t u r e r e g r e t o r b l a m e \u00E2\u0080\u0094 w h e t h e r on the p a r t o f s o c i e t y a t l a r g e o r by a s p e c i f i e d g r o u p \u00E2\u0080\u0094 c o u l d r e s u l t i n s i g n i f i c a n t l y i n f l a t e d e s t i m a t e s o f v a l u e . One o f the major d i f f i c u l t i e s t h a t a r i s e s i n d i s c u s s i n g p r o c e s s c on-s i d e r a t i o n s i s t h a t t h e s e t o f p o s s i b l e v a r i a b l e s a p p e a r s t o be both l a r g e and p o o r l y d e f i n e d \u00E2\u0080\u0094 s u c c i n c t , u n i v e r s a l l y a c c e p t e d d e f i n i t i o n s f o r a bounded s e t o f c o n s i d e r a t i o n s such as r e g r e t , r e s p o n s i b i l i t y o r g u i l t s i m p l y do not e x i s t . As a r e s u l t , the a s s i g n m e n t o r p r e d i c t i o n o f r e l e v a n t p r o c e s s c o n c e r n s remains h i g h l y s u b j e c t i v e . N e v e r t h e l e s s , s e v e r a l p r e l i m i n a r y h y p o t h e s e s can be ad-vanced on t h e b a s i s o f s t u d y r e s u l t s r e g a r d i n g t h e a n t i c i p a t e d r o l e o f p r o c e s s 153 c o n s i d e r a t i o n s ; f u r t h e r r e s e a r c h i s r e q u i r e d i n o r d e r t o c l a r i f y t he r e l a t i v e s i g n i f i c a n c e o f each c o n c e r n and the s u s c e p t i b i l i t y o f i n d i v i d u a l s ' e x p r e s -s i o n s o f v a l u e t o i n t e n t i o n a l m a n i p u l a t i o n s o f the s u r v e y q u e s t i o n . 1. The more c l e a r l y t h a t a r e s p o n d e n t i s i d e n t i f i e d , t h e g r e a t e r i s h i s o r her i n c e n t i v e f o r s t a t i n g an i n f l a t e d v a l u e . For example, a s k i n g s u r v e y p a r t i c i p a n t s t o p r o v i d e t h e i r name o r c o n d u c t i n g h o u s e h o l d and o t h e r s u r v e y s i n which t h e i d e n t i t y o f p a r t i c i p a n t s can be noted w i l l t e n d t o r e s u l t i n h i g h e r a v e r a g e e x p r e s s e d p r e f e r e n c e s . 2. The more i m p o r t a n c e t h a t i s p l a c e d on a p e r s o n ' s answers, the l a r g e r h i s o r her d e c l a r e d v a l u e s w i l l t e n d t o be. For example, s t a t i n g t h a t t h e s t u d y p o p u l a t i o n has been c a r e f u l l y s e l e c t e d , t h a t the sample s i z e i s s m a l l o r t h a t t h e magnitude o f r e s p o n s e s w i l l , p r o v e i m p o r t a n t t o a p a r t i c u -l a r p u b l i c agency c o u l d i n c r e a s e a p a r t i c i p a n t ' s sense o f r e s p o n s i b i l i t y o r t h e p e r c e i v e d p o t e n t i a l f o r f u t u r e blame. 3. High d e c l a r a t i o n s o f v a l u e a r e a l s o p r o b a b l e whenever the p o t e n -t i a l l y i n j u r e d p a r t i e s a r e c l e a r l y i d e n t i f i e d . F o r example, e v a l u a t i o n s o f a w i l d e r n e s s e n v i r o n m e n t t h a t emphasize the r i g h t s o f f u t u r e g e n e r a t i o n s o r a sense o f s t e w a r d s h i p w i t h r e s p e c t t o one's g r a n d c h i l d r e n w i l l b r i n g t o mind an e a s i l y i magined s o u r c e o f f u t u r e blame and c r i t i c i s m . 4. D i s c u s s i o n s which emphasize the u n i q u e n e s s and magnitude o f f u t u r e c o s t s o r the u n c e r t a i n t y o f a n t i c i p a t e d changes w i l l t e n d t o encourage h i g h e r e x p r e s s i o n s o f v a l u e a s s o c i a t e d w i t h t h e maintenance o f p r e s e n t c o n d i t i o n s . In p a r t i c u l a r , d e s c r i p t i o n s o f p o s s i b l e i r r e v e r s i b l e a l t e r a t i o n s i n an e n v i r o n -ment o r the d e p i c t i o n o f low p r o b a b i l i t y a d v e r s e p o t e n t i a l impacts o f an unknown may r e s u l t i n e x a g g e r a t e d s t a t e m e n t s o f v a l u e . 5. I n c r e a s e d e x p r e s s i o n s o f v a l u e a r e a l s o l i k e l y whenever the a c t i o n r e q u i r e d o f a r e s p o n d e n t i s d e m o n s t r a t e d t o be s m a l l . Such i n t r o d u c -1 5 4 t o r y c l a u s e s as \" F o r o n l y a few minutes o f y o u r t i m e . . . \" o r \"For o n l y a few d o l l a r s more each month...,\" f o r example, a p p e a r t o de-emphasize the f i n a n c i a l o r p s y c h i c c o s t s a s s o c i a t e d w i t h an a c t i o n and f o c u s a t t e n t i o n on the b e n e f i t s o f i t s outcome. I m p l i c a t i o n s o f t h e D i s p a r i t y Most s t u d i e s have r e c o g n i z e d t h e e x i s t e n c e o f both payment and compen-s a t i o n measures o f v a l u e but have o n l y p r e s e n t e d e m p i r i c a l e s t i m a t e s o f i n d i v i d u a l s ' w i l l i n g n e s s t o pay f o r a good because o f the presumed d i f f i c u l t y o f o b t a i n i n g s u f f i c i e n t l y a c c u r a t e e x p r e s s i o n s o f t h e compensation r e q u i r e d f o r i t s l o s s . The r e c o g n i t i o n t h a t a d i s p a r i t y w i l l g e n e r a l l y e x i s t between t h e two methods i m p l i e s t h a t t h e c h o i c e o f e v a l u a t i o n p r o c e d u r e c o u l d prove t o be s i g n i f i c a n t when a s s e s s i n g the v a l u e o f a non-market good. In the c o n -t e x t o f a b e n e f i t - c o s t a n a l y s i s o f a major r e s o u r c e development, f o r example, t h e s e l e c t i o n o f an e v a l u a t i o n a p p r o a c h c o u l d d r a m a t i c a l l y a f f e c t t h e magni-tu d e o f e s t i m a t e d r e s o u r c e l o s s e s . In the c o n t e x t o f a p u b l i c l y p r o v i d e d s e r v i c e , t h e c h o i c e o f an e v a l u a t i o n measure c o u l d d e t e r m i n e whether the c u r r e n t l e v e l o f government e x p e n d i t u r e s h o u l d be m a i n t a i n e d o r even whether a program s h o u l d c o n t i n u e . I f d i f f e r e n c e s i n payment and compensation measures prove t o be both c o n s i s t e n t and l a r g e - - a s i n d i c a t e d by the e m p i r i c a l e v i d e n c e o b t a i n e d i n t h e c o u r s e o f t h i s s t u d y \u00E2\u0080\u0094 t h e n n o t o n l y t h e p r o c e d u r e s used i n e s t i m a t i n g g a i n s and l o s s e s o r a s s i g n i n g l e g a l e n t i t l e m e n t s but a l s o the b e h a v i o r a l a s s u m p t i o n s used i n much o f w e l f a r e economics w i l l be open to f u n d a -mental r e - e x a m i n a t i o n . However, t h e e v i d e n c e f o r the d i s p a r i t y f a i l s t o a d d r e s s the q u e s t i o n o f which a p p r o a c h might p r o v i d e the most a c c u r a t e measure o f changes i n a p e r s o n ' s w e l f a r e . The P a r e t o c r i t e r i a has g e n e r a l l y been i n t e r p r e t e d as a s s e r t i n g t h a t i f an i n d i v i d u a l i s e x p e c t e d t o b e n e f i t from a change, t h e n a 155 measure o f h i s o r h e r w i l l i n g n e s s t o pay f o r the improvement s h o u l d be em-p l o y e d . I f l o s s e s a r e i n v o l v e d , then a measure o f the i n d i v i d u a l ' s compen-s a t i o n demanded i s a p p r o p r i a t e . These recommendations conform t o t h e e s t a b l i s h e d t h e o r y and t h e i r i m p l e m e n t a t i o n would seem t o o n l y r e q u i r e a more w i d e s p r e a d a c c e p t a n c e o f the j u s t i f i c a t i o n f o r e m p l o y i n g measures o f compen-s a t i o n demanded i n c a s e s where t h e s t a t u s o f e n t i t l e m e n t s i s not e x p l i c i t . Problems a r i s e when d i f f e r e n c e s i n the two approaches a r e o b s e r v e d t o be large--when r e s p o n s i b i l i t y c o s t s a r e p a r t i c u l a r l y s i g n i f i c a n t , f o r example, o r when a t r a n s a c t i o n i s n o t c o n s i d e r e d t o be l e g i t i m a t e . The c o n -c e p t u a l c o r r e s p o n d e n c e o f payment measures w i t h a n t i c i p a t e d g a i n s and compen-s a t i o n measures w i t h a n t i c i p a t e d l o s s e s r e m a i n s , but on a p r a c t i c a l l e v e l t h i s d i s t i n c t i o n may be t h o u g h t t o p r o v i d e l i t t l e h e l p i f v a l u e s based on w i l l i n g n e s s t o pay and on c o m p e n s a t i o n demanded approaches a r e f o u n d t o v a r y s u b s t a n t i a l l y . The e x i s t e n c e o f a l a r g e d i s p a r i t y i n e x p r e s s e d v a l u e s i s p a r t i c u l a r l y t r o u b l i n g when i t c a n n o t be c l e a r l y a s c r i b e d t o e i t h e r a r e a l component o f v a l u e o r an o b v i o u s s o u r c e o f b i a s . F o r example, e x p e r i m e n t s c o n d u c t e d as p a r t o f t h i s s t u d y s u g g e s t t h a t payment and compensation measures s h o u l d be a p p r o x i m a t e l y t h e same i f s u b s t i t u t e s f o r a good a r e r e a d i l y a v a i l a b l e , w h i l e t h e y w i l l d i f f e r s i g n i f i c a n t l y i f no a c c e p t a b l e s u b s t i t u t e s e x i s t . However, t h e p a r t i c u l a r wording used when a s k i n g a s u r v e y q u e s t i o n may e x a g g e r a t e o r u n d e r p l a y t h e r e l a t i v e u n i q u e n e s s o f a good and t h e r e b y r e s u l t i n a b i a s e d e x p r e s s i o n o f i t s v a l u e . In both c a s e s ( w i t h o t h e r c o n s i d e r a t i o n s h e l d con-s t a n t ) payment and compensation measures would be e x p e c t e d t o d i v e r g e i n p r o p o r t i o n t o t h e p e r c e i v e d a v a i l a b i l i t y o f s u b s t i t u t e s , but i n the f i r s t i n s t a n c e the d i f f e r e n c e i s r e a l w h i l e i n the second i t i s m e r e l y an a r t i f a c t o f s u r v e y p r o c e d u r e s . 156 One a p p r o a c h t o an o b s e r v e d v a r i a t i o n i n the two measures o f v a l u e i s t o assume t h a t payment methods u n d e r s t a t e and c o m p e n s a t i o n a p p r o a c h e s o v e r -s t a t e r e s p o n d e n t s ' t r u e v a l u e s . However, t h i s i n t e r p r e t a t i o n i s e r r o n e o u s on both c o n c e p t u a l and p r a c t i c a l grounds. The o b s e r v e d d i s p a r i t y , whether l a r g e o r s m a l l , i s n o t i n d i c a t i v e o f a n u m e r i c a l a m b i g u i t y t h a t must be r e s o l v e d ( f o r example, by a v e r a g i n g h i g h and low r e s p o n s e s ) but i n s t e a d o c c u r s because o f a r e a l d i f f e r e n c e i n t h e two measures o f v a l u e . T h i s d i f f e r e n c e i s demon-s t r a t e d , f o r example, by t h e f i n d i n g t h a t a h i g h p r o p o r t i o n o f t h o s e a s k e d c o m p e n s a t i o n q u e s t i o n s may a l s o r e f u s e t o n e g o t i a t e any s e t t l e m e n t . In such c a s e s i t i s not c l e a r which approach w i l l p r o v i d e the more r e l i a b l e e s t i m a t e o f t h e v a l u e o f a non-market good. F o r example, i f an a t t e m p t i s made t o v a l u e a p o t e n t i a l r e s o u r c e l o s s based on an i n d i v i d u a l ' s c o m p e n s a t i o n demanded but t h e t r a n s a c t i o n i s n o t c o n s i d e r e d t o be l e g i t i m a t e , t h e n the s u b j e c t ' s r e s p o n s e w i l l n o t i n d i c a t e t h e economic v a l u e o f t h e good but o n l y p r o v i d e e v i d e n c e t h a t t h e q u e s t i o n i t s e l f i s f u n d a m e n t a l l y unaccep-t a b l e . I f a w i l l i n g n e s s t o pay e s t i m a t e i s employed, i t i s i m p o s s i b l e t o know how t o i n t e r p r e t the r e s p o n s e which i s o b t a i n e d o r how i t might r e l a t e t o a measure o f t h e i n d i v i d u a l s ' compensation demanded. F u r t h e r r e s e a r c h i s o b v i o u s l y needed t o b e t t e r d e l i n e a t e the c o n d i -t i o n s under which one o r the o t h e r measure o f v a l u e i s p r e f e r r e d . I f , f o r example, w i l l i n g n e s s t o pay r e s u l t s a r e m u l t i p l i e d by some p o s i t i v e f a c t o r i n o r d e r t o a p p r o x i m a t e compensation measures o f v a l u e , the i m p l i c i t a s s u m p t i o n i s t h a t a c o n s i s t e n t e m p i r i c a l r e l a t i o n e x i s t s between the two a p p r o a c h e s . A c c o r d i n g l y , any d i f f e r e n c e i n r e s p o n s e s which exceeds t h i s amount i s assumed t o be i n d i c a t i v e o f p r o c e s s c o n s i d e r a t i o n s , the l e g i t i m a c y o f t h e t r a n s a c t i o n , t h e s i z e o f payments o r t h e a v a i l a b i l i t y o f s u b s t i t u t e s i n the p a r t i c u l a r s i t u a t i o n under c o n s i d e r a t i o n . T h i s may w e l l be t r u e , but the e x p e r i m e n t a l 157 e v i d e n c e o b t a i n e d t o d a t e i s i n s u f f i c i e n t t o w a r r a n t much c o n f i d e n c e i n t h i s c o n c l u s i o n . F u r t h e r r e s e a r c h must t h e r e f o r e b e g i n w i t h a c l o s e r e x a m i n a t i o n o f t h e r e a s o n s f o r t h e d i s p a r i t y and the e f f e c t o f each v a r i a b l e on the ob-s e r v e d s i z e o f t h e d i f f e r e n c e ; once t h i s has been a c c o m p l i s h e d , recommenda-t i o n s as t o t h e a p p r o p r i a t e measure o f v a l u e c o u l d then be made w i t h g r e a t l y i n c r e a s e d c o n f i d e n c e . THE ROLE OF HYPOTHETICAL QUESTIONS Attempts t o d i r e c t l y measure t h e v a l u e o f non-market goods have u s u a l l y i n v o l v e d a s k i n g p a r t i c i p a n t s a h y p o t h e t i c a l o r c o n t i n g e n t q u e s t i o n which r e q u i r e s t h a t the r e s p o n d e n t i magine c o n d i t i o n s o t h e r than t h o s e c u r -r e n t l y e n c o u n t e r e d . As d i s c u s s e d i n C h a p t e r IV, most e c o n o m i s t s b e l i e v e t h a t r e s p o n s e s t o such h y p o t h e t i c a l q u e s t i o n s s h o u l d not be t r u s t e d : a s t a n d a r d r e p l y f o l l o w s t h e form t h a t i f you ask a h y p o t h e t i c a l q u e s t i o n you w i l l g et a h y p o t h e t i c a l answer. T h i s s e c t i o n w i l l re-examine t h e l o g i c o f t h i s a s s e r t i o n i n l i g h t o f t h e e x p e r i m e n t a l r e s u l t s which have been o b t a i n e d as p a r t o f t h i s s t u d y . In f a c t , t h e e c o n o m i s t ' s d i s m i s s a l i n v o l v e s not one but two s t e p s . The f i r s t c o n c e r n s t h e p e r c e i v e d h y p o t h e t i c a l n a t u r e o f t h e q u e s t i o n under c o n s i d e r a t i o n , and i t s v a l i d i t y i s o b v i o u s . For example, i f i n d i v i d u a l s c u r -r e n t l y r e c e i v e a s e r v i c e w i t h o u t c h a r g e and a r e asked how much t h e y would pay i f i t were no l o n g e r f r e e , i t i s c l e a r t h a t the proposed s i t u a t i o n i s hypo-t h e t i c a l and t h a t , a t l e a s t i n the u s u a l c a s e , a p a r t i c i p a n t ' s v e r b a l r e s -ponse w i l l n o t e n t a i l a f i r m commitment t o a c t u a l f u t u r e payments. As a r e s u l t , t h e r e s p o n d e n t w i l l not have t o l i v e w i t h the consequences o f h i s o r h e r answer and e i t h e r s t r a t e g i c e f f e c t s o r a d i s i n t e r e s t i n f o r m u l a t i n g an a c c u r a t e r e s p o n s e may a r i s e . The second p a r t o f t h e argument has t o do w i t h whether h y p o t h e t i c a l 158 answers w i l l n e c e s s a r i l y p r o v i d e m i s l e a d i n g i n d i c a t i o n s o f an i n d i v i d u a l ' s t r u e demands. D e s p i t e t h e e x i s t e n c e o f v e r y l i t t l e e m p i r i c a l i n f o r m a t i o n on t h e s u b j e c t , i t i s u s u a l l y assumed t h a t t h e y w i l l . However, the r e s u l t s o f t h i s s t u d y ( p r e s e n t e d i n C h a p t e r VI) as w e l l as t h o s e o b t a i n e d by s e v e r a l o t h e r r e s e a r c h e r s ( f o r example, Bohm, 1972 o r K n e t s c h and S i n d e n , 1982) p r o v -i d e s u r p r i s i n g l y s t r o n g e v i d e n c e t h a t r e s p o n s e s t o h y p o t h e t i c a l q u e s t i o n s w i l l i n many c a s e s c l o s e l y a p p r o x i m a t e r e s p o n d e n t s ' a c t u a l b e h a v i o r . T h i s i s i m p o r t a n t i n f o r m a t i o n , because the measure o f an a c c u r a t e r e s p o n s e i s g e n e r a l l y c o n s i d e r e d t o be t h e b e h a v i o r t h a t would be r e v e a l e d i f an u n p r i c e d good,were o f f e r e d i n a market where e x c l u s i o n was p o s s i b l e . But even f o r p r i v a t e goods which a r e t r a d e d i n w e l l - b e h a v e d m a r k e t s , a number o f i m p o r t a n t c o s t s and b e n e f i t s ( t r a n s a c t i o n s c o s t s , e x t e r n a l i t i e s , e t c . ) a r e o m i t t e d from o b s e r v a b l e , r e a l i z e d p r i c e s and must be i n c o r p o r a t e d on the b a s i s o f shadow c a l c u l a t i o n s o r more ad-hoc p r o c e d u r e s . A d d i t i o n a l assump-t i o n s a r e i n v o l v e d when u s i n g market d a t a t o o b t a i n measures o f a g g r e g a t e w e l f a r e changes. In some c a s e s , t h e r e f o r e , i t i s a t l e a s t p o s s i b l e t h a t i n -f o r m a t i o n o b t a i n e d i n the c o n t e x t o f a h y p o t h e t i c a l market w i l l be more a c c u r -a t e than t h a t n o r m a l l y d e r i v e d on t h e b a s i s o f o b s e r v e d b e h a v i o r . The c o r r e s p o n d e n c e which has been o b s e r v e d between a c t u a l and hypo-t h e t i c a l r e s p o n s e s may i n p a r t be due t o t h e f a c t t h a t the e x p e r i m e n t a l s i t u a t i o n s have i n v o l v e d r e l a t i v e l y minor monetary exchanges and f a m i l i a r , w e l l - d e f i n e d t y p e s o f goods. Many o f t h e e x p e r i m e n t s d i s c u s s e d i n t h i s s t u d y , f o r example, compared r e s p o n s e s t o a c t u a l and h y p o t h e t i c a l l o t t e r i e s i n which t h e p r i z e s were an e l e c t r o n i c c a l c u l a t o r and a b o t t l e o f champagne. Hypo-t h e t i c a l q u e s t i o n s o f t h i s s o r t a r e f r e q u e n t l y asked r e g a r d i n g proposed t a x changes o r p u b l i c i n v e s t m e n t o p p o r t u n i t i e s , and so l o n g as t h e c o n t e x t i s f a m i l i a r s u b j e c t s a r e g e n e r a l l y r e p o r t e d t o r e s p o n d r e a d i l y and w i t h a f a i r 159 degree o f c o n f i d e n c e . As a l e v e l o f payment o r compensation i n c r e a s e s and the i s s u e s under c o n s i d e r a t i o n become more complex, h y p o t h e t i c a l q u e s t i o n s may p r o v i d e a l e s s a c c u r a t e g u i d e t o t h e t r u e p r e f e r e n c e s o f i n d i v i d u a l s . Yet f o r t h e s e same r e a s o n s t h e y may a l s o r e p r e s e n t t h e o n l y p o s s i b l e a p p r o a c h : a l t h o u g h i t i s r e l a t i v e l y easy t o c r o s s - c h e c k t h e r e s u l t s o f a h y p o t h e t i c a l s u r v e y by con-d u c t i n g an a c t u a l l o t t e r y f o r a c a l c u l a t o r , i t i s l i k e l y t o be both p o l i t i c -a l l y and a d m i n i s t r a t i v e l y i m p o s s i b l e t o c o n d u c t an e x p e r i m e n t a l s t u d y o f p e o p l e s ' b e h a v i o r i n r e s p o n s e t o a c t u a l a l t e r a t i o n s i n a i r q u a l i t y o r many o t h e r non-market goods. T h i s d i s t i n c t i o n r e f l e c t s a s i g n i f i c a n t d i f f e r e n c e i n t h e n a t u r e o f t h e exchange. Economic t r a d e - o f f s a r e u s u a l l y based on t r i a l and e r r o r , w i t h p a r t i c i p a n t s i n market d e c i s i o n s u s i n g p a s t e x p e r i e n c e s , d i s c u s s i o n s w i t h f r i e n d s o r consumer i n f o r m a t i o n t o h e l p d e t e r m i n e the v a l u e o f a p a r t i c u l a r good. In marked c o n t r a s t , a number o f d e c i s i o n s c o n c e r n i n g t h e p r o v i s i o n and v a l u a t i o n o f non-market goods i n v o l v e n o n - r o u t i n e c h o i c e s which have not been f a c e d b e f o r e and may never a g a i n be e n c o u n t e r e d . In a d d i t i o n , p o t e n t i a l outcomes may w e l l i n v o l v e i r r e v e r s i b l e consequences ( s u c h as s p e c i e s e x t i n c t i o n o r a . p o t e n t i a l l o s s o f l i f e ) which a r e d i f f i c u l t t o u n d e r s t a n d and o b v i o u s l y must remain h y p o t h e t i c a l . In such c a s e s , i t seems f u t i l e t o argue a g a i n s t the use o f hypothe-t i c a l q u e s t i o n s so l o n g as measures o f i n d i v i d u a l s ' e x p r e s s e d p r e f e r e n c e s a r e d e s i r e d : t h e s i t u a t i o n i s i n c o r r i g i b l y h y p o t h e t i c a l , and so too i s the e v a l u a -t i o n q u e s t i o n . I n s t e a d , t h e b e s t t h a t can be done i s t o c o n d u c t h y p o t h e t i c a l s u r v e y s i n such a way t h a t i n d i v i d u a l s a r e d i s c o u r a g e d from e n g a g i n g i n d e c e p t i v e r e s p o n s e s t r a t e g i e s and h e l p e d t o f i r s t u n c o v e r and s u b s e q u e n t l y communicate t h e i r t r u e p r e f e r e n c e s . As emphasized i n e a r l i e r c h a p t e r s as w e l l as by r e s e a r c h e r s such as F i s c h h o f f ( 1 9 8 2 ) , d i f f e r e n t e v a l u a t i o n t a s k s w i l l 160 r e q u i r e a s p e c i a l s e n s i t i v i t y t o t h e s e d i f f i c u l t i e s . Two g e n e r a l and s e v e r a l s p e c i f i c c o n c e r n s a p p e a r t o m e r i t s p e c i a l a t t e n t i o n on t h e b a s i s o f r e s u l t s o b t a i n e d i n t h i s s t u d y . G e n e r a l Concerns A s s o c i a t e d With H y p o t h e t i c a l Q u e s t i o n s A f i r s t g e n e r a l s o u r c e o f d i f f i c u l t y has t o do w i t h t h e n a t u r e o f the t a s k a t hand. In many c a s e s p a r t i c i p a n t s may s i m p l y be c o n f u s e d by the a c t o f b e i n g a s k e d t o . e v a l u a t e a h y p o t h e t i c a l s i t u a t i o n and w i l l r e q u i r e c l e a r i n s t r u c t i o n s r e g a r d i n g t h e e x p e r i m e n t a l o b j e c t i v e s and c o n t e x t . In p a r t i c u -l a r , h y p o t h e t i c a l q u e s t i o n s which d e s c r i b e a r e l a t i v e l y u n f a m i l i a r o r p o o r l y d e f i n e d s i t u a t i o n \u00E2\u0080\u0094 t h e s t a t u s o f a w i l d e r n e s s a r e a f o l l o w i n g p r o p o s e d d e v e l -opment, o r t h e e f f e c t o f a d e c l i n e i n the p r o v i s i o n o f a government s e r v i c e -may r e q u i r e an e x t e n s i v e d e s c r i p t i o n b e f o r e t h e y can be c l e a r l y u n d e r s t o o d . Many p a r t i c i p a n t s i n t h e group o f s u r v e y s c o n d u c t e d a t t h e P r o v i n c i a l Museum, f o r example, d e s i r e d a d d i t i o n a l i n f o r m a t i o n r e g a r d i n g t h e i n t e r v i e w c o n t e x t o r t h e l i k e l y c o n s equences o f a l t e r n a t i v e r e s p o n s e s b e f o r e t h e y would answer any q u e s t i o n s . A number o f o t h e r p r o c e d u r e s might a l s o improve s u b j e c t s ' u n d e r s t a n d -i n g o f the r e q u i r e d t a s k s . F o r example, i t may prove u s e f u l t o a l l o w some t i m e - - a m a t t e r o f h o u r s , days o r w e e k s \u00E2\u0080\u0094 f o r t h e d i s c u s s i o n o f key i s s u e s among p a r t i c i p a n t s o r t o encourage an i n d e p e n d e n t i n v e s t i g a t i o n o f r e l a t e d c o n c e r n s . I f p a r t i c i p a n t s a p p e a r t o be u n i n t e r e s t e d i n the s u b j e c t , i t may be p o s s i b l e t o r e p h r a s e o r decompose some o f t h e q u e s t i o n s , i n t r o d u c e a d d i t i o n a l i n f o r -m a t i o n ( f o r example, photographs o r documentary e v i d e n c e ) o r employ sm a l l p r i c e s as an inducement t o r e s p o n d e n t s . A second s o u r c e o f d i f f i c u l t y a r i s e s f r o m t h e r e q u i r e m e n t t h a t p a r -t i c i p a n t s be a b l e t o c l o s e l y d e f i n e what may be v a g u e l y h e l d f e e l i n g s o r 161 \u00E2\u0080\u00A2 t r a n s l a t e them i n t o monetary terms. Even i f the n a t u r e o f the exchange i s c l e a r l y u n d e r s t o o d , p a r t i c i p a n t s may be unsure about how t h e i r p r e f e r e n c e s can s u c c e s s f u l l y be e x p r e s s e d . In such c a s e s the s u b s t i t u t i o n o f a more f a m i l i a r o r even m u l t i p l e payment v e h i c l e s may prove h e l p f u l , as might t h e e s t a b l i s h m e n t o f a frame o f r e f e r e n c e by which t h e d e c i s i o n a t hand c o u l d be compared t o o t h e r s o f a s i m i l a r n a t u r e . Both approaches were employed as p a r t o f t h i s s t u d y , a l t h o u g h the t e s t s were not s u f f i c i e n t t o p e r m i t a c o n -c l u s i v e a n a l y s i s o f r e s u l t s . In a d d i t i o n , more i n t e r a c t i v e e l i c i t a t i o n p r o -c e d u r e s can be employed whereby t h e i n t e r v i e w e r a c t i v e l y h e l p s t o c l a r i f y t h e i m p l i c a t i o n s o f s u b j e c t s ' r e s p o n s e s , p r o p o s e s a l t e r n a t i v e f o r m u l a t i o n s o f t h e problem o r even e n c o u r a g e s p a r t i c i p a n t s t o t e s t a f i r s t r e s p o n s e by q u e s t i o n -i n g t h e i r answer o r d e s c r i b i n g l i k e l y s o u r c e s and d i r e c t i o n s o f b i a s . S p e c i f i c Concerns A s s o c i a t e d With H y p o t h e t i c a l Q u e s t i o n s S e v e r a l more s p e c i f i c a s p e c t s o f s u r v e y d e s i g n and i m p l e m e n t a t i o n have a l s o been d i s c u s s e d i n p r e v i o u s c h a p t e r s . Each o f t h e s e c o n c e r n s i s i m p o r t a n t i n t h e e s t i m a t i o n and i n t e r p r e t a t i o n o f e x p r e s s e d p r e f e r e n c e measures o f v a l u e , w i t h t h e i r r e l a t i v e s i g n i f i c a n c e dependent on t h e s p e c i f i c c i r c u m -s t a n c e s and c o n t e x t w i t h i n which t h e e v a l u a t i o n p r o c e e d s . The f o l l o w i n g l i s t t h e r e f o r e s e r v e s o n l y t o summarize a number o f key c o n s i d e r a t i o n s t h a t have a r i s e n i n the c o u r s e o f t h i s study'when u s i n g h y p o t h e t i c a l q u e s t i o n s t o v a l u e non-market goods. V a l u a t i o n a p p r o a c h . A f i r s t and fundamental c h o i c e has t o do w i t h the s e l e c -t i o n o f a v a l u a t i o n a p p r o a c h , which may be based on e i t h e r an i n d i v i d u a l ' s w i l l i n g n e s s t o pay t o r e t a i n o r t o o b t a i n a good o r the l e v e l o f compensation which i s demanded i n r e t u r n f o r r e l i n q u i s h i n g i t . In c o n t r a s t t o p r e v a i l i n g t h e o r i e s , the r e s u l t s o f t h i s s t u d y d e m o n s t r a t e t h a t d i f f e r e n c e s i n r e s p o n s e s 162 t o t h e two a p p r o a c h e s w i l l i n g e n e r a l prove t o be both p e r v a s i v e and s i g n i f i -c a n t . As a r e s u l t , t h e c h o i c e o f e v a l u a t i o n p r o c e d u r e w i l l i n many c a s e s i n f l u e n c e t h e e s t i m a t e d v a l u e o f a non-market good; t he i d e n t i f i c a t i o n o f f o u r key c h a r a c t e r i s t i c s p r o v i d e s an i n i t i a l g u i d e t o the a n t i c i p a t e d magni-tud e o f t h e d i s p a r i t y . I t i s a l s o emphasized t h a t t h e s e l e c t i o n o f a p r e -f e r r e d a p p r o a c h must r e f l e c t both t h e o r e t i c a l and p r a c t i c a l c o n c e r n s and may v a r y w i t h e i t h e r t h e v a l u a t i o n c o n t e x t o r t h e n a t u r e o f t h e good under c o n s i -d e r a t i o n . Payment measure. A second c o n c e r n i n v o l v e s t h e s e l e c t i o n o f a payment measure, which i n most c a s e s w i l l c o r r e s p o n d t o one o f t h r e e g e n e r a l q u e s t i o n f o r m a t s : c l o s e d - e n d e d ( o r a l l - o r - n o n e ) , open-ended, o r a b i d d i n g game. The e m p i r i c a l r e s u l t s o b t a i n e d i n t h i s s t u d y not o n l y s u g g e s t t h a t t h e c h o i c e c o u l d s i g n i f i -c a n t l y i n f l u e n c e r e s u l t a n t e x p r e s s i o n s o f v a l u e but i n d i c a t e t h a t the v a r i a -t i o n i s s y s t e m a t i c r a t h e r t h a n random. In p a r t i c u l a r , t h e e s t i m a t e s which were o b t a i n e d u s i n g a b i d d i n g game ap p r o a c h c o n s i s t e n t l y exceeded t h o s e ex-p r e s s e d when e i t h e r c l o s e d - e n d e d o r open-ended t e c h n i q u e s were employed, which throws i n t o q u e s t i o n the a c c u r a c y o f r e s u l t s o b t a i n e d by Rowe e t a l . ( 1 9 8 0 ) , R a n d a l l ejt al_. (1974) and o t h e r s u s i n g an i t e r a t i v e b i d d i n g f o r m a t . A l t h o u g h t h e e v i d e n c e remains t e n t a t i v e due t o the absence o f an o b j e c t i v e l y d e f i n e d \" c o r r e c t \" v a l u e , t h e r e s u l t s o f t h i s s t u d y s u g g e s t t h a t a c l o s e d -ended measure a p p e a r s t o o f f e r t h e b e s t o p p o r t u n i t y f o r d e r i v i n g u n b i a s e d e s t i m a t e s o f v a l u e . M o t i v a t i o n a l b i a s e s . M o t i v a t i o n a l b i a s e s have t r a d i t i o n a l l y p r o v i d e d t h e major s o u r c e o f c o n c e r n r e g a r d i n g t h e use o f h y p o t h e t i c a l q u e s t i o n s , w i t h both s t r a t e g i c and i n f o r m a t i o n e f f e c t s assumed t o e n s u r e i n a c c u r a t e r e s p o n s e s . The e x p e r i m e n t a l e v i d e n c e o b s e r v e d i n t h i s and s e v e r a l p r e v i o u s s t u d i e s , however, 163 s u g g e s t s t h a t t h e impact o f m o t i v a t i o n a l b i a s e s w i l l f r e q u e n t l y prove to be n e g l i g i b l e i n the c a s e o f w e l l - d e s i g n e d and c a r e f u l l y implemented h y p o t h e t i c a l s u r v e y s . As d i s c u s s e d i n C h a p t e r V I , t h e a c t u a l b e h a v i o r o f p a r t i c i p a n t s i n a l a r g e number o f e x p e r i m e n t s i n v o l v i n g c a s h t r a n s a c t i o n s was f o u n d t o be s u r p r i s i n g l y s i m i l a r t o t h e p r e f e r e n c e s which had been i n d i c a t e d i n r e s p o n s e to h y p o t h e t i c a l q u e s t i o n s . C o g n i t i v e b i a s e s . C o g n i t i v e b i a s e s have g e n e r a l l y been o v e r l o o k e d as a s o u r c e o f s y s t e m a t i c e r r o r i n the v a l u a t i o n o f non-market goods. W h i l e t h i s s t u d y p r o v i d e s some e v i d e n c e t h a t t h e i r impact can be a n t i c i p a t e d and the magnitude o f d i s t o r t i o n s m i n i m i z e d , s e v e r a l s o u r c e s o f c o g n i t i v e b i a s \u00E2\u0080\u0094 i n c l u d i n g a n c h o r i n g and c o n t e x t u a l e f f e c t s \u00E2\u0080\u0094 a r e shown t o be c a p a b l e o f s i g n i -f i c a n t l y i n f l u e n c i n g p a r t i c i p a n t s ' r e s p o n s e s to both w i l l i n g n e s s t o pay and c o m p e n s a t i o n demanded measures o f v a l u e . Because o f t h e u n i n t e n t i o n a l n a t u r e o f c o g n i t i v e b i a s e s , i t i s recommended t h a t s u r v e y a p proaches t o the v a l u a t i o n o f non-market goods employ a wide range o f v a l u e s and t h a t a d d i t i o n a l r e s e a r c h be c o n d u c t e d i n t h e use o f i n t e r a c t i v e i n t e r v i e w p r o c e d u r e s t h r o u g h which r e s p o n d e n t s c o u l d g a i n an improved p e r s p e c t i v e on t h e i r e x p r e s s e d v a l u e s . Framing e f f e c t s . A f i f t h c o n c e r n i n v o l v e s f r a m i n g e f f e c t s , which i n a sense r e p r e s e n t s a s u b s e t o f c o g n i t i v e b i a s e s . L i t t l e a t t e n t i o n has been p a i d i n p u b l i s h e d s t u d i e s o f non-market v a l u e s t o the r e l a t i o n between p a r t i c u l a r q u e s t i o n f o r m a t s and i n d i v i d u a l s ' e x p r e s s e d v a l u e s . T h i s s t u d y has shown t h a t f o r m a l l y i r r e l e v a n t m a n i p u l a t i o n s i n t h e wording o f t h e s u r v e y q u e s t i o n can r e s u l t i n s i g n i f i c a n t v a r i a t i o n s i n a v e r a g e r e s p o n s e s , and p r o p o s e s t h a t the c o n c e p t u a l framework p r o v i d e d by p r o s p e c t t h e o r y may prove u s e f u l i n e v a l u a t -i n g the impact o f a l t e r n a t i v e d e c i s i o n frames. 164 P r o c e s s c o n s i d e r a t i o n s . F i n a l l y a number o f p r o c e s s c o n s i d e r a t i o n s - - i n c l u d i n g t h o s e a s s o c i a t e d w i t h r e g r e t , r e s p o n s i b i l i t y and blame--are shown t o e x e r t a major i n f l u e n c e on the magnitude o f s u b j e c t s ' e x p r e s s e d p r e f e r e n c e s f o r non-market goods. A l t h o u g h p r e v i o u s s t u d i e s have f o c u s s e d on the outcome o f a d e c i s i o n , the r e s u l t s o f t h i s s t u d y emphasize t h a t the p a r t i c u l a r way i n which an a c t i o n i s p r e s e n t e d t o an i n d i v i d u a l may i n f l u e n c e i t s p e r c e i v e d v a l u e f o r r e a s o n s which have l i t t l e o r n o t h i n g t o do w i t h t h e s p e c i f i c t r a d e -o f f which i s o s t e n s i b l y under c o n s i d e r a t i o n . P r o c e s s c o n s i d e r a t i o n s a r e shown t o a f f e c t both payment and c o m p e n s a t i o n measures o f v a l u e , a l t h o u g h t h e i r i n f l u e n c e w i l l g e n e r a l l y n o t be symmetric w i t h r e s p e c t t o the two a p p r o a c h e s . A d d i t i o n a l r e s e a r c h needs t o be u n d e r t a k e n i n each o f t h e s e s i x a r e a s . The e x p e r i m e n t s c o n d u c t e d as p a r t o f t h i s s t u d y have d e m o n s t r a t e d the s i g n i -f i c a n c e o f each c o n c e r n i n the e v a l u a t i o n o f non-market goods, c l a r i f i e d s e v e r a l l i m i t a t i o n s o f c u r r e n t p r a c t i c e s and p r o v i d e d a more c o h e r e n t frame-work f o r f u t u r e a n a l y s i s . The e x i s t e n c e o f t h e s e s i x c o n c e r n s emphasizes the c o m p l e x i t y o f the v a l u a t i o n p r o c e s s and p r o v i d e s a r e m i n d e r o f o u r l i m i t e d u n d e r s t a n d i n g r e g a r d -i n g t h e b e h a v i o r a l components o f d e c i s i o n p r o c e s s e s u n d e r t a k e n by p e o p l e . Y e t e s t i m a t e s o f t h e v a l u e o f non-market goods and a c t i v i t i e s s t i l l need t o be made. What i s now r e q u i r e d i s t h e r e f o r e a b a s i c r e - e x a m i n a t i o n o f c h e r i s h e d p r i n c i p l e s r e g a r d i n g how i n d i v i d u a l s s e l e c t a p r e f e r r e d o p t i o n and a renewed commitment t o t h e b a s i c e m p i r i c a l r e s e a r c h which w i l l o v e r time p r o v i d e an improved u n d e r s t a n d i n g o f t h e methods and p r o c e d u r e s which can be used t o e s t i m a t e t h e i r v a l u e . 165 REFERENCES A j z e n , I. and M. F i s h b e i n . 1977. A t t i t u d e - B e h a v i o r R e l a t i o n s : A T h e o r e t i c a l A n a l y s i s and Review o f E m p i r i c a l R e s e a r c h . P s y c h o l o g i c a l B u l l e t i n 84:888-918. B a n f o r d , N., J . K n e t s c h and G. Mauser. 1979-80. Compensating and E q u i v a l e n t V a r i a t i o n Measures o f Consumer's S u r p l u s : F u r t h e r S u r vey R e s u l t s . J o u r n a l o f B u s i n e s s A d m i n i s t r a t i o n II ( F a l l / S p r i n g ) : 2 5 - 3 5 . B a r d a c h , E. and L. P u g l i a r e s i . 1977. The E n v i r o n m e n t a l Impact Statement Vs. The Real World. P u b l i c I n t e r e s t 49:22-38. B e r g e r , T.R. 1977. N o r t h e r n F r o n t i e r , N o r t h e r n Homeland: Report o f the M a ckenzie V a l l e y P i p e l i n e I n q u i r y . M i n i s t r y o f S u p p l y and S e r v i c e s Canada, Ottawa. B e r g s o n , A. 1937. A R e f o r m a t i o n o f C e r t a i n A s p e c t s o f W e l f a r e Economics. Q u a r t e r l y J o u r n a l o f Economics 56:337-341. B i s h o p , R. and T. H e b e r l e i n . 1979. M e a s u r i n g V a l u e s o f E x t r a m a r k e t Goods: Are I n d i r e c t Measures B i a s e d ? American J o u r n a l o f A g r i c u l t u r a l Economics 61:926-930. __, and T. H e b e r l e i n . 1980. S i m u l a t e d M a r k e t s , H y p o t h e t i c a l M a r k e t s , and T r a v e l C o s t A n a l y s i s : A l t e r n a t i v e Methods o f E s t i m a t i n g Outdoor R e c r e a t i o n Demand. D i s c u s s i o n Paper Number 187, U n i v e r s i t y o f W i s c o n s i n , December. B l a n k , F., D. B r o o k s h i r e , T. C r o c k e r , R. d'Arge, R. H o r s t J r . and R. Rowe. 1978. V a l u a t i o n o f A e s t h e t i c P r e f e r e n c e s : A Case Study o f the Economic V a l u e o f V i s i b i l i t y . Resource and E n v i r o n m e n t a l Economics L a b o r a t o r y , U n i v e r s i t y o f Wyoming. B o c k s t a e l , N. and K. M c C o n n e l l . 1980. C a l c u l a t i n g E q u i v a l e n t and Compensating V a r i a t i o n f o r N a t u r a l Resource F a c i l i t i e s . Land Economics 56:56-63. Bohm, P. 1971. An Approach t o the Problem o f E s t i m a t i n g Demand f o r P u b l i c Goods. Swedish J o u r n a l o f Economics 73:94-105. . 1972. E s t i m a t i n g Demand f o r P u b l i c Goods: An E xperiment. European Economic Review 3:111-130. B r o o k s h i r e , D.S., B. Ives and W. S c h u l t z e . 1976. The V a l u a t i o n o f A e s t h e t i c P r e f e r e n c e s . J o u r n a l o f E n v i r o n m e n t a l Economics and Management 3:325-346. 166 B r o o k s h i r e , D.S. and A. R a n d a l l . 1978. P u b l i c P o l i c y , P u b l i c Goods and C o n t i n g e n t V a l u a t i o n Mechanisms. S t a f f Paper 68, Department o f A g r i c u l -t u r a l Economics, U n i v e r s i t y o f Kentucky. , M. T h a y e r , W. S c h u l t z e and R. d'Arge. 1981. V a l u i n g P u b l i c Goods: A Comparison o f S u r v e y and Hedonic Approaches.,;; American Economic Review 72:165-177. C a l a b r e s i , G. 1968. T r a n s a c t i o n s C o s t s , Resource A l l o c a t i o n , and L i a b i l i t y R u l e s - - A Comment. The J o u r n a l o f Law and Economics 67:111-121. , and A. Melamed. 1972. P r o p e r t y R u l e s , L i a b i l i t y R u l e s , and I n a l i e n a b i l i t y : One View o f t h e C a t h e d r a l . H a r v a r d Law Review 85:1089-1128. Clawson, M. and J . K n e t s c h . 1966. Economics o f Outdoor R e c r e a t i o n . B a l t i -more, Johns Hopkins U n i v e r s i t y P r e s s f o r Resources f o r the F u t u r e . Coase, R. 1960. The Problem o f S o c i a l C o s t . The J o u r n a l o f Law and Economics 3:1-44. Cohen, A.R. 1964. A t t i t u d e Change and S o c i a l I n f l u e n c e . New York: B a s i c Books. Dawes, R.M. 1976. S h a l l o w P s y c h o l o g y . In C o g n i t i o n and S o c i a l B e h a v i o r , J.S. C a r r o l l and J.W. Payne, eds. L. Erlbaum A s s o c i a t e s , New York. D a v i s , R.K. 1963. R e c r e a t i o n P l a n n i n g as an Economic Problem. N a t u r a l Resources J o u r n a l 3:239-249. Dorfman, R. 1966. G e n e r a l E q u i l i b r i u m With P u b l i c Goods. In P u b l i c Economics, J,. M a r g o l i s and H. G u i t t o n , eds. S t . M a r t i n s P r e s s , New York. Dwyer, J . F . and M.D. Bowes. 1978. Concepts o f V a l u e f o r M a r i n e R e c r e a t i o n a l F i s h i n g . American J o u r n a l o f A g r i c u l t u r a l Economics LX:1008-1012. E h r e n f e l d , D. 1978. The A r r o g a n c e o f Humanism. O x f o r d U n i v e r s i t y P r e s s . F i s c h h o f f , B. 1977. P e r c e i v e d I n f o r m a t i v e n e s s o f F a c t s . J o u r n a l o f E x p e r i - mental P s y c h o l o g y 3:349-358. . n.d. D e b i a s i n g . In Judgement Under U n c e r t a i n t y : H e u r i s t i c s and B i a s e s , D. Kahneman, P. S l o v i c and A. T v e r s k y , eds. Cambridge U n i v e r s i t y P r e s s , f o r t h c o m i n g . , B. G o i t e i n and Z. S h a p i r a . 1979. The E x p e r i e n c e d U t i l i t y o f Ex-p e c t e d U t i l i t y A p p r o a c h e s . In E x p e c t a n c y , I n c e n t i v e and A c t i o n , N.T. F e a t h e r , ed. H i l l s d a l e , N.J.: Erlbaum A s s o c i a t e s . , P. S l o v i c and S. L i c h t e n s t e i n . 1980. Knowing What You Want: Measur-i n g L a b i l e V a l u e s . In C o g n i t i v e P r o c e s s e s i n C h o i c e and D e c i s i o n B e h a v i o r , T. W a l l s t e n , ed. H i l l s d a l e , N.J.: Erlbaum A s s o c i a t e s . 167 F i s c h h o f f , B., P. S l o v i c , S. L i c h t e n s t e i n , S. Reed and B. Combs. 1976. How S a f e i s S a f e Enough? A P s y c h o m e t r i c Study o f A t t i t u d e s Towards Techno-l o g i c a l R i s k s and B e n e f i t s . P o l i c y S c i e n c e s 8:127-152. Freeman, A.M. I I I . 1979. The B e n e f i t s o f E n v i r o n m e n t a l Improvement. B a l t i -more, Johns Hopkins U n i v e r s i t y P r e s s f o r Resources f o r t h e F u t u r e . Fromm, G. 1968. Comment. In Problems i n P u b l i c E x p e n d i t u r e A n a l y s i s , S.B. Chase, J r . , ed. B r o o k i n g s I n s t i t u t i o n , Wash., D.C. Gordon, I. and J . K n e t s c h . 1979. Consumer's S u r p l u s Measures and the E v a l u a -t i o n o f R e s o u r c e s . Land Economics 55:1-10. G r e t h e r , D. and C. P l o t t . Economic The o r y o f C h o i c e and t h e P r e f e r e n c e R e v e r s a l Phenomena. American Economic Review 69:623-638. Hammack, J . and G.M. Brown, J r . 1974. Waterfowl and Wetlands: Toward B i o - economic A n a l y s i s . B a l t i m o r e , Johns Hopkins U n i v e r s i t y P r e s s f o r Resources f o r t h e F u t u r e . Haveman, R. and B. Weisbrod. 1975. The Concept o f B e n e f i t s i n C o s t - B e n e f i t A n a l y s i s , With Emphasis on Water P o l l u t i o n C o n t r o l A c t i v i t i e s . In C o s t - B e n e f i t A n a l y s i s and Water P o l l u t i o n P o l i c y , H. P e s k i n and E. S e s k i n , eds. Washington, D . C : The Urban I n s t i t u t e . H e l l e r , T. 1976. The Importance o f Normative D e c i s i o n - M a k i n g : The L i m i t a -t i o n s o f L e g a l Economics as a B a s i s f o r L i b e r a l J u r i s p r u d e n c e . W i s c o n s i n Law Review 18:385-502. Henderson, A.M. 1941. Consumer's S u r p l u s and t h e Compensating V a r i a t i o n . The Review o f Economic S t u d i e s 8:117-121. H i c k s , J . 1939. The F o u n d a t i o n s o f W e l f a r e Economics. Economic J o u r n a l 49: 696-712. . 1943. The Four Consumer's S u r p l u s e s . Review o f Economic S t u d i e s 11:31-41. Kahneman, D. 1981. B u r e a u c r a c i e s , Minds and t h e Human E n g i n e e r i n g o f D e c i s i o n s . U n p u b l i s h e d paper p r e p a r e d f o r C o n f e r e n c e on New D i r e c t i o n s i n D e c i s i o n Making. U n i v e r s i t y o f Oregon. , and A. T v e r s k y . 1979. P r o s p e c t T h e o r y : An A n a l y s i s o f D e c i s i o n Under R i s k . E c o n o m e t r i c a 47:263-291. , and A. T v e r s k y . 1979. I n t u i t i v e P r e d i c t i o n : B i a s e s and C o r r e c t i v e P r o c e d u r e s . TIMS S t u d i e s i n t h e Management S c i e n c e s 12:313-327. K a l d o r , N. 1939. W e l f a r e P r o p e n s i t i e s i n Economics and I n t e r p e r s o n a l Compari-sons o f U t i l i t y . Economic J o u r n a l 49:549-552. K a t e s , R. 1977. Managing T e c h n o l o g i c a l Hazard: R e s e a r c h Needs and Oppor- t u n i t i e s . I n s t i t u t e o f B e h a v i o r a l S c i e n c e , U n i v e r s i t y o f C o l o r a d o . 168 Kennedy, D. 1981. C o s t - B e n e f i t A n a l y s i s o f E n t i t l e m e n t Problems: A C r i t i q u e . S t a n f o r d Law Review 33:387-445. K n e t s c h , J . n.d. D i s p a r i t i e s Between A l t e r n a t i v e Measures o f Economic L o s s e s . An Exp e r i m e n t w i t h Real Exchanges. U n p u b l i s h e d paper. , and J . S i n d e n . n.d. W i l l i n g n e s s t o Pay and Compensation Demanded: E x p e r i m e n t a l E v i d e n c e o f an Unexpected D i s p a r i t y i n Measures o f V a l u e . Q u a r t e r l y J o u r n a l o f Economics, f o r t h c o m i n g . K r u t i l l a , J . and A. F i s h e r . 1975. The Economics o f N a t u r a l Environments. B a l t i m o r e , Johns Hopkins U n i v e r s i t y P r e s s f o r Resources f o r the F u t u r e . K u n r e u t h e r , H. 1978. D i s a s t e r I n s u r a n c e P r o t e c t i o n : P u b l i c P o l i c y L e s s o n s . New York: W i l e y and Sons. K u r z , M. 1974. An E x p e r i m e n t a l Approach t o t h e D e t e r m i n a t i o n o f t h e Demand f o r P u b l i c Goods. J o u r n a l o f P u b l i c Economics 3:329-348. L a P i e r e , R.T. 1934. A t t i t u d e s v s . A c t i o n s . S o c i a l F o r c e s 13:230-237. Lave, L. and E. S e s k i n . 1977. A i r P o l l u t i o n and Human H e a l t h . B a l t i m o r e , Johns Hopkins U n i v e r s i t y P r e s s f o r Resources f o r t h e F u t u r e . L i c h t e n s t e i n , S. and P. S l o v i c . 1971. R e v e r s a l s o f P r e f e r e n c e s Between B i d s and C h o i c e s i n Gambling D e c i s i o n s . J o u r n a l o f E x p e r i m e n t a l P s y c h o l o g y 89: 45-46. L i n d b l o m , C. 1959. The S c i e n c e o f Mu d d l i n g Through. P u b l i c A d m i n i s t r a t i o n Review 19:79-88. L i t t l e , I.M.D. 1960. A C r i t i q u e o f W e l f a r e Economics. 2nd e d i t i o n . O x f o r d : C l a r e n d o n P r e s s . M a i e r , K.G. 1974. E n v i r o n m e n t a l Economics: A T h e o r e t i c a l I n q u i r y . B a l t i m o r e , Johns Hopkins U n i v e r s i t y P r e s s f o r Resources f o r the F u t u r e . March, J . 1978. Bounded R a t i o n a l i t y , A m b i g u i t y , and the E n g i n e e r i n g o f C h o i c e . B e l l J o u r n a l o f Economics 9:587-608. , arid Z. S h a p i r a . 1981. B e h a v i o r a l D e c i s i o n T h e o r y and O r g a n i z a t i o n a l D e c i s i o n T h e o r y . U n p u b l i s h e d p a p e r , p r e p a r e d f o r C o n f e r e n c e on New D i r e c t i o n s i n D e c i s i o n Making. U n i v e r s i t y o f Oregon, March. Meyer, P. 1979. P u b l i c l y V e s t e d V a l u e s f o r F i s h and W i l d l i f e : C r i t e r i a i n Economic W e l f a r e and I n t e r f a c e With t h e Law. Land Economics 55:223-235. Mi s h a n , E . J . 1976. The Use o f Compensating and E q u i v a l e n t V a r i a t i o n s . Economica 43:185-197. N i s b e t t , R. a'nd L. Ross. 1980. Human I n f e r e n c e : S t r a t e g i e s and Sh o r t c o m i n g s o f S o c i a l Judgement. Englewood C l i f f s , N.J.: P r e n t i c e - H a l l I nc. 169 N u t t e r , W. 1979. On Economism. J o u r n a l o f Law and Economics XXI1:263-268. P e a r c e , D.W. 1976. E n v i r o n m e n t a l Economics. Longman Group L t d . , London. P e t e r s e n , C.R. and L.R. Beach. 1967. Man as an I n t u i t i v e S t a t i s t i c i a n . P s y c h o l o g i c a l B u l l e t i n 68:29-46. R a n d a l l , A., B. Ives and C. Eastman. 1974. B i d d i n g Games f o r V a l u a t i o n o f A e s t h e t i c E n v i r o n m e n t a l Improvements. J o u r n a l o f E n v i r o n m e n t a l Economics and Management 1:132-149. Rowe, R., R. d'Arge and D. B r o o k s h i r e . 1980. An E x periment on the Economic V a l u e o f V i s i b i l i t y . J o u r n a l o f E n v i r o n m e n t a l Economics and Management 7: 1-19. Samuel so n , P. 1954. The Pure T h e o r y o f P u b l i c E x p e n d i t u r e . Review o f Economics 69:99-118. S c i t o v s k y , T. 1941. A Note on W e l f a r e P r o p e n s i t i e s i n Economics. Review o f Economic S t u d i e s 9:77-88. Simon, H.A. 1955. A B e h a v i o r a l Model o f R a t i o n a l C h o i c e . Q u a r t e r l y J o u r n a l o f Economics 69:99-118. . 1956. R a t i o n a l C h o i c e and the S t r u c t u r e o f the Environment. P s y c h o l o g i c a l Review 63:29-38. . 1978. On How To D e c i d e What To Do. B e l l J o u r n a l o f Economics 9: 494-507. S i n c l a i r , W. 1976. The Economic and S o c i a l Impact o f t h e Kemano II Hydro-e l e c t r i c P r o j e c t on B r i t i s h Columbia's F i s h e r i e s R e s o u r c e s . Dept. o f t h e E n v i r o n m e n t , F i s h e r i e s and M a r i n e S e r v i c e . S l o v i c , P., B. F i s c h h o f f and S. L i c h t e n s t e i n . 1977. B e h a v i o r a l D e c i s i o n T h e ory. Annual Review o f P s y c h o l o g y 28:1-39. , B. F i s c h h o f f and S. L i c h t e n s t e i n . n.d. Response Mode, Framing, and I n f o r m a t i o n P r o c e s s i n g E f f e c t s i n Rim Assessment. In New D i r e c t i o n s f o r Methodology o f S o c i a l and B e h a v i o r a l S c i e n c e : The Framing o f Q u e s t i o n s t h e C o n s i s t e n c y o f Response, R. H o g a r t h , ed. San F r a n c i s c o , C a l i f : J o s s e y -B a s s , f o r t h c o m i n g . S t a r r , C. 1969. S o c i a l B e n e f i t v s . T e c h n o l o g i c a l R i s k . S c i e n c e 165:23-38. T h a l e r , R. 1980. Toward a P o s i t i v e Theory o f Consumer C h o i c e . J o u r n a l o f Economic B e h a v i o r and O r g a n i z a t i o n 1:39:60. T h a y e r , M. 1981. C o n t i n g e n t V a l u a t i o n T e c h n i q u e s f o r A s s e s s i n g E n v i r o n m e n t a l Impacts: F u r t h e r E v i d e n c e . J o u r n a l o f E n v i r o n m e n t a l Economics and Manage-ment 81:27-44. 170 T r i b e , L. 1973. T e c h n o l o g y Assessment and t h e F o u r t h D i s c o n t i n u i t y : The L i m i t s o f I n s t r u m e n t a l R a t i o n a l i t y . S o u t h e r n C a l i f o r n i a Law Review 46: 617-660. T v e r s k y , A. 1969. I n t r a n s i t i v i t y o f P r e f e r e n c e s . P s y c h o l o g i c a l Review 76: 31-48. , and D. Kahneman, 1974. Judgement Under U n c e r t a i n t y : H e u r i s t i c s and B i a s e s . S c i e n c e 185:1129-1131. , and D. Kahneman. 1980. Causal Schemas i n Judgements Under Uncer-t a i n t y . In P r o g r e s s i n S o c i a l P s y c h o l o g y , M. F i s h b e i n , ed. H i l l s d a l e , N.J.: Erlbaum P r e s s . , and D. Kahneman. 1981. The Framing o f D e c i s i o n s and the P s y c h o l o g y o f C h o i c e . S c i e n c e 211:453-458. Walsh, R., D. G r e e n l e y , R. Young, J . McKean and A. P r a t o . 1978. O p t i o n V a l u e s , P r e s e r v a t i o n V a l u e s and R e c r e a t i o n a l B e n e f i t s o f Improved Water Q u a l i t y . U.S. E n v i r o n m e n t a l P r o t e c t i o n Agency. A l s o Q u a r t e r l y J o u r n a l o f Economics, f o r t h c o m i n g . W i c k e r , A.W. 1969. A t t i t u d e s v s . A c t i o n s : The R e l a t i o n s h i p o f V e r b a l and O v e r t B e h a v i o r a l Responses t o A t t i t u d e O b j e c t s . J o u r n a l o f S o c i a l I s s u e s 25:135-175. W i l l i g , R. 1976. Consumer's S u r p l u s Without A p o l o g y . The American Economic Review 66:589-597. 171 APPENDIX GUIDE TO THESIS SURVEY TESTS UBC T e s t s l a WTP, p r e v e n t l b WTP, p r e v e n t \u00E2\u0080\u00A2 - r e v e r s e d l c WTP, m a i n t a i n Id WTP, maximum l e , f WTP, p r e v e n t : w i t h e x p e n d i t u r e frame o f r e f e r e n c e , $: c u r r e n t , h i g h and low i g , h WTP, p r e v e n t : w i t h e x p e n d i t u r e frame o f r e f e r e n c e , r e l a t i v e r a n k i n g : c u r r e n t and i d e a l 2a,b WTA, base and b a s e - r e v e r s e d 2c WTA, minimum 2d WTA, base: c h a n g i n g $ amounts 3a,b WTP, p r e v e n t : h i g h and low r e s p o n s i b i l i t y 3c,d WTA, base: h i g h and Tow r e s p o n s i b i l i t y 4a WTP, p r e v e n t : p r o v i n c i a l government (compares w i t h l h ) 4b-d WTP, p r e v e n t : c h a n g i n g $ amounts c. 5a,b A v e r s i v e n e s s , w i t h and w i t h o u t r e s p o n s i b i l i t y : Vancouver a i r p o l l u t i o n 6a,b A v e r s i v e n e s s , w i t h and w i t h o u t r e s p o n s i b i l i t y : N o r t h e r n a n i m a l s 7a-c A v e r s i v e n e s s , w i t h ( t e l e p h o n e and i n - p e r s o n ) and w i t h o u t r e s p o n s i b i l i t y : l o c a l a i r c r a s h 8a WTP, c l o s e d range 8b-d WTP, a l l o r none Oe,f WTP, b i d d i n g game ( d i f f e r e n t i n c r e m e n t s ) 3g Open-ended 9a WTA, c l o s e d range 9b-d WTA, a l l o r none 9 e , f WTA, b i d d i n g game ( d i f f e r e n t i n c r e m e n t s ) 9g Open-ended 10a WTP, c l o s e d range 10 b WTA, c l o s e d range Museum Tests-'\u00E2\u0080\u00A2 a. , a.. WTP, e n t r a n c e f e e b. ,b.., b...:, WTP, annual t a x c . c , c..,,TP, e n t r a n c e f e e : frame o f r e f e r e n c e d. WTP, maximum: e n t r a n c e f e e e. , e.., WTP, maximum: frame o f r e f e r e n c e f . WTP, maximum: annual t a x g. WTA, annual t a x h. , h.., WTA, annual t a x j . , j . . , j . . . , WTP, non - u s e r 1. WTP, non - u s e r : maximum 172 SEX: M F la AIR QUALITY OPTIONS In t h i s s u r v e y , we e n c o u r a g e you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and t h e maintenance o f h i g h l e v e l s of. e n v i r o n m e n t a l q u a l i t y i n the V a n c o u v e r a r e a . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l e q u i p m e n t , c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on t h e a v e r a g e a i r q u a l i t y o f the l o c a l e n v i r o n -ment. As\" a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o \u00E2\u0080\u0094 c o u l d ' become much more f r e q u e n t . S i n c e p r o t e c f i o n o f t h e e n v i r o n m e n t c o s t s money, we a r e wanting t o g e t an e s t i m a t e o f t h e amount you would be w i l l i n g t o spend i n o r d e r t o e n s u r e c o n t i n u e d h i g h l e v e l s o f a i r q u a l i t y i n the Vancouver a r e a . When a n s w e r i n g t h e f o l l o w i n g q u e s t i o n s , c o n s i d e r t h a t a d d i t i o n a l e x p e n d i t u r e s w i l l be f i n a n c e d t h r o u g h t h e c r e a t i o n o f a s p e c i a l \" e n v i r o n m e n t a l q u a l i t y \" t a x . A l t h o u g h the method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be r e q u i r e d t o pay an equal amount. 1. For how l o n g have you l i v e d i n t h e Vancouver a r e a ? l e s s than 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. Would you be w i l l i n g t o pay an annual t a x o f $10 i n o r d e r t o p r e v e n t a d e c l i n e i n a v e r a g e a i r q u a l i t y l e v e l s ? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o pay an annual t a x o f $25? Yes No b. I f no, would you be w i l l i n g t o pay an annual t a x o f $5? Yes No 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f t h e goods which we buy. Do you have any comments about h a v i n g t o pay f o r e n v i r o n m e n t a l q u a l i t y ? 173 SEX: l b AIR QUALITY OPTIONS In t h i s s u r v e y , we e n c o u r a g e you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and the maintenance o f h i g h l e v e l s of. e n v i r o n m e n t a l q u a l i t y i n the V a n c o u v e r a r e a . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l e q u i p m e n t , c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on t h e a v e r a g e a i r q u a l i t y o f the l o c a l e n v i r o n -ment: As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o - - c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, we a r e wanting t o g e t an e s t i m a t e o f t h e amount y o u would be w i l l i n g t o spend i n o r d e r t o e n s u r e c o n t i n u e d h i g h l e v e l s o f a i r q u a l i t y i n t h e Vancouver a r e a . When a n s w e r i n g the f o l l o w i n g q u e s t i o n s , c o n s i d e r t h a t a d d i t i o n a l e x p e n d i t u r e s w i l l be f i n a n c e d t h r o u g h t h e c r e a t i o n o f a s p e c i a l \" e n v i r o n m e n t a l q u a l i t y \" t a x . A l t h o u g h t h e method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be r e q u i r e d t o pay an e q u a l amount. 1. For how l o n g have you l i v e d i n t h e Vancouver a r e a ? l e s s t h a n 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. In o r d e r t o p r e v e n t a d e c l i n e i n a v e r a g e a r e a a i r q u a l i t y l e v e l s would you be w i l l i n g t o pay an annual t a x o f $10? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o pay an annual t a x o f $25? Yes No b. I f no, would you be w i l l i n g t o pay an annual t a x o f $5? Yes No 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f t h e goods which we buy. Do. you have any comments about h a v i n g t o pay f o r e n v i r o n m e n t a l q u a l i t y ? 174 SEX: M F I c AIR QUALITY OPTIONS In t h i s s u r v e y , we e n c o u r a g e you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and t h e maintenance o f h i g h l e v e l s o f e n v i r o n m e n t a l q u a l i t y i n the Vancouver a r e a . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on the a v e r a g e a i r q u a l i t y o f t h e l o c a l e n v i r o n -ment. As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o - - c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, we a r e w a n t i n g t o g e t an e s t i m a t e o f t h e amount y o u would be w i l l i n g t o spend i n o r d e r t o e n s u r e c o n t i n u e d h i g h l e v e l s o f a i r q u a l i t y i n t h e Vancouver a r e a . When a n s w e r i n g t h e f o l l o w i n g q u e s t i o n s , c o n s i d e r t h a t a d d i t i o n a l e x p e n d i t u r e s w i l l be f i n a n c e d t h r o u g h t h e c r e a t i o n o f a s p e c i a l \" e n v i r o n m e n t a l q u a l i t y \" t a x . A l t h o u g h the method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be r e q u i r e d t o pay an e q u a l amount. 1. F o r how l o n g have you l i v e d i n the Vancouver a r e a ? l e s s t h a n 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. Would you be w i l l i n g t o pay an annual t a x o f $10 i n o r d e r t o m a i n t a i n p r e s e n t a r e a a i r q u a l i t y l e v e l s ? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o pay an annual t a x o f $25? Yes No b. I f no, would you be w i l l i n g t o pay an annual t a x o f $5? Yes No 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f t h e goods which we buy. Do you have any comments about h a v i n g t o pay f o r e n v i r o n m e n t a l q u a l i t y ? 175 SEX: M F Id AIR QUALITY OPTIONS In t h i s s u r v e y , we e n c o u r a g e you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and t h e maintenance o f h i g h l e v e l s o f e n v i r o n m e n t a l q u a l i t y i n the Vancouver a r e a . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on t h e a v e r a g e a i r q u a l i t y o f t h e l o c a l e n v i r o n -ment. As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o \u00E2\u0080\u0094 c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, we a r e w a n t i n g t o g e t an e s t i m a t e o f t h e amount you would be w i l l i n g t o spend i n o r d e r t o e n s u r e c o n t i n u e d h i g h l e v e l s o f a i r q u a l i t y i n the Vancouver a r e a . When an s w e r i n g the f o l l o w i n g q u e s t i o n s , c o n s i d e r t h a t a d d i t i o n a l e x p e n d i t u r e s w i l l be f i n a n c e d t h r o u g h t h e c r e a t i o n o f a s p e c i a l \" e n v i r o n m e n t a l q u a l i t y \" t a x . A l t h o u g h t h e method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be r e q u i r e d t o pay an e q u a l amount. 1. For how l o n g have you l i v e d i n t h e Vancouver a r e a ? l e s s t h a n 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. What i s t h e maximum annual t a x t h a t you would be w i l l i n g t o pay i n o r d e r to p r e v e n t a d e c l i n e i n a v e r a g e a r e a a i r q u a l i t y l e v e l s ? $ 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f t h e goods which we buy. Do you have any comments about h a v i n g t o pay f o r e n v i r o n m e n t a l q u a l i t y ? 176 AIR QUALITY OPTIONS le In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and the maintenance o f h i g h l e v e l s o f e n v i r o n m e n t a l q u a l i t y i n the Vancouver a r e a . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on the average a i r q u a l i t y o f the l o c a l e n v i r o n m e n t . As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o -c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, we a r e w a n t i n g t o g e t an e s t i m a t e o f t h e amount you would be w i l l i n g t o spend i n o r d e r t o e n s u r e c o n t i n u e d h i g h l e v e l s o f a i r q u a l i t y i n the Vancouver a r e a . When a n s w e r i n g the f o l l o w i n g q u e s t i o n s , c o n s i d e r t h a t a d d i t i o n a l e x p e n d i t u r e s w i l l be f i n a n c e d t h r o u g h t h e c r e a t i o n o f a s p e c i a l \" e n v i r o n m e n t a l q u a l i t y \" t a x . A l t h o u g h the method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be r e q u i r e d t o pay an equal amount. In o r d e r t o h e l p p r o v i d e a frame o f r e f e r e n c e , we have n o t e d below the a v e r a g e annual monetary payments which B.C. r e s i d e n t s now make f o r a number o f d i v e r s e goods and s e r v i c e s . - m e d i c a l & h e a l t h c a r e $140 - e d u c a t i o n $ 60 - c h a r i t a b l e o r g a n i z a t i o n s $ 59 - o u t d o o r r e c r e a t i o n equipment $156 - e a t i n g i n r e s t a u r a n t s $272 - t o b a c c o and a l c o h o l $219 1. F o r how l o n g have you l i v e d i n the Vancouver a r e a ? l e s s t h a n 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. Suppose t h a t , j u s t as each t a x p a y e r now makes annual payments t o c h a r i t a b l e o r g a n i z a t i o n s o r t o m a i n t a i n the q u a l i t y o f Vancouver's s c h o o l s y s t e m , you c o u l d make an annual payment t o m a i n t a i n the q u a l i t y o f V a ncouver's e n v i r o n m e n t . Would you be w i l l i n g t o pay an annual t a x o f $10 i n o r d e r t o p r e v e n t a d e c l i n e i n a v e r a g e a r e a a i r q u a l i t y l e v e l s ? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o pay an annual t a x o f $25? Yes No b. I f no, would you be w i l l i n g t o pay an annual t a x o f $5? Yes No 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f t h e goods which we buy. Do you have any comments about h a v i n g t o pay f o r e n v i r o n m e n t a l q u a l i t y ? 177 AIR QUALITY OPTIONS I f In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and t h e maintenance o f h i g h l e v e l s o f e n v i r o n m e n t a l q u a l i t y i n the Vancouver a r e a . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on the a v e r a g e a i r q u a l i t y o f t h e l o c a l e n v i r o n m e n t . As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o \u00E2\u0080\u0094 c o u l d become much more f r e q u e n t . ^ i S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, we a r e w a n t i n g t o g e t an e s t i m a t e o f t h e amount you would be w i l l i n g t o spend i n o r d e r t o e n s u r e c o n t i n u e d h i g h l e v e l s o f a i r q u a l i t y i n t h e Vancouver a r e a . When a n s w e r i n g the f o l l o w i n g q u e s t i o n s , c o n s i d e r t h a t a d d i t i o n a l e x p e n d i t u r e s w i l l be f i n a n c e d t h r o u g h t h e c r e a t i o n o f a s p e c i a l \" e n v i r o n m e n t a l q u a l i t y \" t a x . A l t h o u g h t h e method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be r e q u i r e d t o pay an equal amount. In o r d e r t o h e l p p r o v i d e a frame o f r e f e r e n c e , we have n o t e d below the a v e r a g e annual monetary payments which B.C. r e s i d e n t s now make f o r a number o f d i v e r s e goods and s e r v i c e s . - m e d i c a l & h e a l t h c a r e $140 - t i c k e t s t o movies $ 13 - e d u c a t i o n $ 60 r e a d i n g $ 37 - c h a r i t a b l e o r g a n i z a t i o n s $ 59 - c o s m e t i c s $ 28 1. For how l o n g have you l i v e d i n the Vancouver a r e a ? l e s s t h a n 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. Suppose t h a t , j u s t as each t a x p a y e r now makes annual payments;to c h a r i t a b l e o r g a n i z a t i o n s o r t o m a i n t a i n t h e q u a l i t y o f Vancouver's s c h o o l system, you c o u l d make an annual payment t o m a i n t a i n the q u a l i t y o f V ancouver's e n v i r o n m e n t . Would you be w i l l i n g t o pay an annual t a x o f $10 i n o r d e r t o p r e v e n t a d e c l i n e i n a v e r a g e a r e a a i r q u a l i t y l e v e l s ? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o pay an annual t a x o f $25? Yes No b. I f no, would you be w i l l i n g t o pay an annual t a x o f $5? Yes No 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f t h e goods which we buy. Do you have any comments about h a v i n g t o pay f o r e n v i r o n m e n t a l q u a l i t y ? 178 AIR QUALITY OPTIONS lg In this survey, we encourage you to express your views regarding trade-offs between continued industrial growth and the maintenance of high levels of environmental quality in the Vancouver area. Several of the plans for this area envision a substantial long-term increase in industrial activity and local employment opportunities. Although new developments would be required to meet legal pollution standards and to utilize pollution control equipment, continued regional growth could s t i l l result in adverse effects on the average air quality of the local environment. As a result, visibility would decline and severe smog conditions\u00E2\u0080\u0094as frequently occur in other large metropolitan areas such as Los Angeles or Toronto\u00E2\u0080\u0094could become much more frequent. Since protection of the environment costs money, we are wanting to get an estimate of the amount you would be willing to spend in order to ensure con-tinued high levels of air quality in the Vancouver area. When answering the following questions, consider that additional expenditures will be financed through the creation of a special \"environmental quality\" tax. Although the method of payment is s t i l l under consideration, assume that all students and other area residents will be required to pay an equal amount. 1. For how long have you lived in the Vancouver area? less than 1 year 1-5 years more than 5 years 2. Do you live in rented or self-owned housing? rented self-owned 3. Suppose that, just as each taxpayer now makes annual payments to charitable organizations or to maintain the quality of Vancouver's school system, you could make an annual payment to maintain the quality of Vancouver's environment. We would like you to compare your willingness to pay an annual tax in order to prevent a decline in average area air quality levels to the amount you feel that you currently pay for the goods and services shown below. In each case, please indicate the relative magnitude of your current expenditure levels by rating each entry on a scale of 1 to 7. Give a ranking of 1 to your choice for the highest payment and a ranking of 7 to your choice for the lowest payment. medical & health care education cosmetics .jewelry charitable organizations environmental quality tobacco and alcohol Now, please indicate the approximate dollar amount you feel you currently spend each year on your highest and lowest ranked expenditure choices (in other words, numbers 1 and 7). Number 1 is Number 7 is Annual Expenditure = $ Annual Expenditure = $ 4. All of us now pay for clean air in a variety of ways, including higher taxes and increased prices for many of the goods which we buy. Do you have any comments about having to pay for environmental quality? AIR QUALITY OPTIONS 1 7 g l h In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and the maintenance o f h i g h l e v e l s o f e n v i r o n m e n t a l q u a l i t y i n t h e Vancouver a r e a . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l e q u i p m e n t , , c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on the a v e r a g e a i r q u a l i t y o f the l o c a l e n v i r o n m e n t . As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o \u00E2\u0080\u0094 c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, we a r e wanting t o get an e s t i m a t e o f t h e amount you would be w i l l i n g t o spend i n o r d e r t o . e n s u r e c o n -t i n u e d h i g h l e v e l s o f a i r q u a l i t y i n t h e Vancouver a r e a . When an s w e r i n g the f o l l o w i n g q u e s t i o n s , c o n s i d e r t h a t a d d i t i o n a l e x p e n d i t u r e s w i l l be f i n a n c e d t h r o u g h t h e c r e a t i o n o f a s p e c i a l \" e n v i r o n m e n t a l q u a l i t y \" t a x . A l t h o u g h t h e method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be r e q u i r e d t o pay an e q u a l amount. 1. F o r how how have you l i v e d i n t h e Vancouver a r e a ? l e s s than 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. Suppose t h a t , j u s t as each t a x p a y e r now makes annual payments t o c h a r i t a b l e o r g a n i z a t i o n s o r t o m a i n t a i n t h e q u a l i t y o f Vancouver's s c h o o l system, you c o u l d make an annual payment t o m a i n t a i n t h e q u a l i t y o f V a n c o u v e r ' s e n v i r o n m e n t . We would l i k e you t o compare y o u r w i l l i n g n e s s t o pay an annual t a x i n o r d e r t o p r e v e n t a d e c l i n e i n a v e r a g e a r e a a i r q u a l i t y l e v e l s t o t h e amount you f e e l y o u would l i k e t o pay f o r t h e goods and s e r v i c e s shown below. In each c a s e , p l e a s e i n d i c a t e the r e l a t i v e magnitude o f y o u r i d e a l e x p e n d i t u r e l e v e l s by r a t i n g each e n t r y on a s c a l e o f 1 t o 7. G i v e a r a n k i n g o f 1 t o y o u r c h o i c e f o r the h i g h e s t payment and a r a n k i n g o f 7 t o y o u r c h o i c e f o r t h e l o w e s t payment. m e d i c a l & h e a l t h c a r e \" e d u c a t i o n c o s m e t i c s j e w e l r y c h a r i t a b l e o r g a n i z a t i o n s e n v i r o n m e n t a l q u a l i t y t o b a c c o and a l c o h o l Now, p l e a s e i n d i c a t e t h e a p p r o x i m a t e d o l l a r amount you f e e l you c u r r e n t l y spend each y e a r on y o u r h i g h e s t and l o w e s t r a n k e d e x p e n d i t u r e c h o i c e s ( i n o t h e r words, numbers 1 and 7 ) . Number 1 I s Number 7 i s Annual E x p e n d i t u r e = $ Annual E x p e n d i t u r e = $ 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f t h e goods which we buy. Do you have any comments ab o u t h a v i n g t o pay f o r e n v i r o n m e n t a l q u a l i t y ? 180 SEX: M F 2a AIR QUALITY OPTIONS In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and t h e maintenance o f h i g h l e v e l s o f e n v i r o n m e n t a l q u a l i t y i n t h e Vancouver a r e a . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on t h e a v e r a g e a i r q u a l i t y o f t h e l o c a l e n v i r o n -ment. As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o \u00E2\u0080\u0094 c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, l o w e r s t a n d a r d s o f e n v i r o n -mental p r o t e c t i o n c o u l d r e s u l t i n s u b s t a n t i a l f i n a n c i a l s a v i n g s f o r the P r o v i n c i a l government.. We a r e wanting t o g e t an e s t i m a t e o f the amount o f monetary compensation t h a t you would r e q u i r e i n o r d e r t o a c c e p t lower l e v e l s o f a i r q u a l i t y i n t h e Vancouver a r e a . When an s w e r i n g the f o l l o w i n g ques-t i o n s , c o n s i d e r t h a t s a v i n g s w i l l be d i s t r i b u t e d t h r o u g h a d e c r e a s e i n P r o v i n c i a l t a x e s o r an e q u i v a l e n t annual payment. A l t h o u g h t h e method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be compensated an equal amount. 1. .For how l o n g have you l i v e d i n t h e Vancouver a r e a ? l e s s than 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. Would you be w i l l i n g t o a c c e p t a d e c r e a s e i n y o u r annual t a x e s o r an annual payment o f $10 i f as a r e s u l t a v e r a g e a i r q u a l i t y l e v e l s d e c l i n e d Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o a c c e p t a d e c r e a s e i n y o u r annual t a x e s o r an annual payment o f $5?. Yes No b. I f no, would you be w i l l i n g t o a c c e p t a d e c r e a s e i n y o u r annual t a x e s o r an annual payment o f $25? Yes No 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f t h e goods which we buy. Do you have any comments about the p o s s i b i l i t y o f r e c e i v i n g monetary payments i n r e t u r n f o r a c c e p t i n g lower l e v e l s o f e n v i r o n m e n t a l q u a l i t y ? 181 SEX: M F 2b AIR QUALITY OPTIONS In t h i s s u r v e y , we e n c o u r a g e you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and t h e m a i n t e n a n c e o f h i g h l e v e l s o f e n v i r o n m e n t a l q u a l i t y i n t h e Vancouver a r e a . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new d e v e l o p m e n t s would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on t h e a v e r a g e a i r q u a l i t y o f t h e l o c a l e n v i r o n -ment. As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o \u00E2\u0080\u0094 c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, l o w e r s t a n d a r d s o f e n v i r o n -mental p r o t e c t i o n c o u l d r e s u l t i n s u b s t a n t i a l f i n a n c i a l s a v i n g s f o r the P r o v i n c i a l government. We a r e wanting t o g e t an e s t i m a t e o f t h e amount o f monetary c o m p e n s a t i o n t h a t you would r e q u i r e i n o r d e r t o a c c e p t l o w e r l e v e l s o f a i r q u a l i t y i n t h e Vancouver a r e a . When a n s w e r i n g t h e f o l l o w i n g ques-t i o n s , c o n s i d e r t h a t s a v i n g s w i l l be d i s t r i b u t e d t h r o u g h a d e c r e a s e i n P r o v i n c i a l t a x e s o r an e q u i v a l e n t annual payment. A l t h o u g h the method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be compensated an e q u a l amount. 1. F o r how l o n g have you l i v e d i n t h e Vancouver a r e a ? l e s s t h a n 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. Would you be w i l l i n g t o a c c e p t a d e c l i n e i n a v e r a g e a r e a a i r q u a l i t y l e v e l s i f as a r e s u l t y o u r annual t a x e s d e c r e a s e d by $10 o r you r e c e i v e d an e q u i v a l e n t \" a n n u a l payment? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o a c c e p t a d e c r e a s e i n y o u r annual t a x e s or an annual payment o f $5? Yes No b. I f no, would you be w i l l i n g t o a c c e p t a d e c r e a s e i n y o u r annual t a x e s o r an annual payment o f $25? Yes No 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f . t h e goods which we buy. Do you have any comments about the p o s s i b i l i t y o f r e c e i v i n g monetary payments i n r e t u r n f o r a c c e p t i n g lower l e v e l s o f e n v i r o n m e n t a l q u a l i t y ? 182 SEX: M F 2c AIR QUALITY OPTIONS In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and t h e m a i n t e n a n c e o f h i g h l e v e l s o f e n v i r o n m e n t a l q u a l i t y i n t h e Vancouver a r e a . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new d e v e l o p m e n t s would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on t h e a v e r a g e a i r q u a l i t y o f t h e l o c a l e n v i r o n -ment. As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o \u00E2\u0080\u0094 c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, l o w e r s t a n d a r d s o f e n v i r o n -mental p r o t e c t i o n c o u l d r e s u l t i n s u b s t a n t i a l f i n a n c i a l s a v i n g s f o r the P r o v i n c i a l government. We a r e w a n t i n g t o g e t an e s t i m a t e o f the amount o f monetary c o m p e n s a t i o n t h a t you would r e q u i r e i n o r d e r t o a c c e p t lower l e v e l s o f a i r q u a l i t y i n t h e Vancouver a r e a . When a n s w e r i n g t h e f o l l o w i n g ques-t i o n s , c o n s i d e r t h a t s a v i n g s w i l l be d i s t r i b u t e d t h r o u g h a d e c r e a s e i n P r o v i n c i a l t a x e s o r an e q u i v a l e n t annual payment. A l t h o u g h the method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be compensated an e q u a l amount. 1. For how l o n g have you l i v e d i n t h e V a n c o u v e r a r e a ? l e s s t h a n 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. What i s the minimum d e c r e a s e i n y o u r annual t a x e s o r t h e minimum annual payment t h a t you would be w i l l i n g t o a c c e p t i f as a r e s u l t a v e r a g e a r e a a i r q u a l i t y l e v e l s d e c l i n e d ? $ 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f the goods which we buy. Do you have any comments about t h e p o s s i b i l i t y o f r e c e i v i n g monetary payments i n r e t u r n f o r a c c e p t i n g lower l e v e l s o f e n v i r o n m e n t a l q u a l i t y ? 183 SEX: M F 2d AIR QUALITY OPTIONS In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and t h e maintenance o f h i g h l e v e l s o f e n v i r o n m e n t a l q u a l i t y i n the Vancouver a r e a . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on t h e a v e r a g e a i r q u a l i t y o f the l o c a l e n v i r o n -ment. As a r e s u l t , - v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o \u00E2\u0080\u0094 c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, l o w e r s t a n d a r d s o f e n v i r o n -mental p r o t e c t i o n c o u l d r e s u l t i n s u b s t a n t i a l f i n a n c i a l s a v i n g s f o r t h e P r o v i n c i a l government. We a r e w a n t i n g t o g e t an e s t i m a t e o f t h e amount o f monetary compensation t h a t you would r e q u i r e i n o r d e r t o a c c e p t l o w e r l e v e l s o f a i r q u a l i t y i n the Vancouver a r e a . When an s w e r i n g the f o l l o w i n g q u e s t i o n s , c o n s i d e r t h a t s a v i n g s w i l l be d i s t r i b u t e d t h r o u g h a d e c r e a s e i n P r o v i n c i a l t a x e s o r an e q u i v a l e n t annual payment. A l t h o u g h t h e method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be compensated an equal amount. 1. For how l o n g have you l i v e d i n the Vancouver a r e a ? l e s s t h a n 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. Would you be w i l l i n g t o a c c e p t a d e c r e a s e i n y o u r annual t a x e s o r an annual payment o f $100 i f as a r e s u l t a v e r a g e a i r q u a l i t y l e v e l s d e c l i n e d ? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g . t o a c c e p t a d e c r e a s e i n y o u r annual t a x e s o r an annual payment o f $25? Yes No b. I f no, would you be w i l l i n g t o a c c e p t a d e c r e a s e i n y o u r annual t a x e s o r an annual payment o f $200? Yes No 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r . many o f t h e goods which we buy. Do you have any comments about the p o s s i b i l i t y o f r e c e i v i n g monetary payments i n r e t u r n f o r a c c e p t i n g l o w e r l e v e l s o f e n v i r o n m e n t a l q u a l i t y ? 184 SEX: M F 3a AIR QUALITY OPTIONS In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and t h e maintenance o f h i g h l e v e l s o f e n v i r o n m e n t a l q u a l i t y i n the Vancouver a r e a . You have been s e l e c t e d as p a r t o f a s m a l l sample o f Vancouver a r e a r e s i d e n t s , and y o u r answers t o t h e f o l l o w i n g q u e s t i o n s c o u l d s e r v e as an i n p u t t o t h e f o r m a t i o n o f Government p o l i c i e s . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on t h e a v e r a g e a i r q u a l i t y o f t h e l o c a l e n v i r o n -ment. As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o \u00E2\u0080\u0094 c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money., we a r e w a n t i n g t o g e t an e s t i m a t e o f t h e amount you would be w i l l i n g t o spend i n o r d e r t o e n s u r e c o n t i n u e d h i g h l e v e l s o f a i r q u a l i t y i n t h e Vancouver a r e a . When a n s w e r i n g t h e f o l l o w i n g q u e s t i o n s , c o n s i d e r t h a t a d d i t i o n a l e x p e n d i t u r e s w i l l be f i n a n c e d t h r o u g h t h e c r e a t i o n o f a s p e c i a l \" e n v i r o n m e n t a l q u a l i t y \" t a x . A l t h o u g h the method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be r e q u i r e d t o pay an equal amount. 1. For how l o n g have you l i v e d i n t h e Vancouver a r e a ? l e s s t h a n 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do y o u l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d 1 s e l f - o w n e d 3. Would you be w i l l i n g t o pay an annual t a x o f $10 i n o r d e r t o p r e v e n t a d e c l i n e i n a v e r a g e a r e a a i r q u a l i t y l e v e l s ? y e s no Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o pay an annual t a x o f $25? yes no b. I f no, would you be w i l l i n g t o pay an annual t a x o f $5? y e s no 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f t h e goods which we buy. Do you have any comments abo u t h a v i n g t o pay f o r e n v i r o n m e n t a l q u a l i t y ? 185 SEX: M F 3b AIR QUALITY OPTIONS In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and t h e maintenance o f h i g h l e v e l s o f e n v i r o n m e n t a l q u a l i t y i n t h e Vancouver a r e a . You have been randomly s e l e c t e d as p a r t o f a l a r g e sample o f Vancouver a r e a r e s i d e n t s , and y o u r answers t o t h e f o l l o w i n g q u e s t i o n s w i l l s e r v e as an i n p u t t o a U n i v e r s i t y o f B r i t i s h Columbia s t u d e n t r e s e a r c h p r o j e c t . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on t h e a v e r a g e a i r q u a l i t y o f t h e l o c a l e n v i r o n -ment. As a r e s u l t , v i s i bi 1 i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o \u00E2\u0080\u0094 c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, we a r e w a n t i n g t o g e t an e s t i m a t e o f t h e amount you would be w i l l i n g t o spend i n o r d e r t o e n s u r e c o n t i n u e d h i g h l e v e l s o f a i r q u a l i t y i n t h e Vancouver a r e a . When a n s w e r i n g t h e f o l l o w i n g q u e s t i o n s , c o n s i d e r t h a t a d d i t i o n a l e x p e n d i t u r e s w i l l be f i n a n c e d t h r o u g h t h e c r e a t i o n o f a s p e c i a l \" e n v i r o n m e n t a l q u a l i t y \" t a x . A l t h o u g h the method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be r e q u i r e d t o pay an equal amount. 1. F o r how l o n g have you l i v e d i n t h e Vancouver a r e a ? l e s s than 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. Would you be w i l l i n g t o pay an annual t a x o f $10 i n o r d e r t o p r e v e n t a d e c l i n e i n a v e r a g e a r e a a i r q u a l i t y l e v e l s ? y e s no Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o pay an annual t a x o f $25? y e s no b. I f no, would you be w i l l i n g t o pay an annual t a x o f $5? yes no 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f t h e goods which we buy. Do you have any comments about h a v i n g t o pay f o r e n v i r o n m e n t a l q u a l i t y ? AIR QUALITY OPTIONS 3c In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and t h e maintenance o f h i g h l e v e l s o f e n v i r o n m e n t a l q u a l i t y i n t h e Vancouver a r e a . You have been s e l e c t e d as p a r t o f a s m a l l sample o f Vancouver a r e a r e s i d e n t s , and y o u r answers t o the f o l l o w i n g q u e s t i o n s c o u l d s e r v e as an i n p u t t o t h e f o r m a t i o n o f Government p o l i c i e s . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on t h e a v e r a g e a i r q u a l i t y o f t h e l o c a l e n v i r o n -ment. As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o \u00E2\u0080\u0094 c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, lower s t a n d a r d s o f e n v i r o n -mental p r o t e c t i o n c o u l d r e s u l t i n s u b s t a n t i a l f i n a n c i a l s a v i n g s f o r the P r o v i n c i a l government. We a r e w a n t i n g t o g e t an e s t i m a t e o f t h e amount o f monetary c o m p e n s a t i o n t h a t you would r e q u i r e i n o r d e r t o a c c e p t lower l e v e l s o f a i r q u a l i t y i n t h e Vancouver a r e a . When a n s w e r i n g t h e f o l l o w i n g ques-t i o n s , c o n s i d e r t h a t s a v i n g s w i l l be d i s t r i b u t e d t h r o u g h a d e c r e a s e i n P r o v i n c i a l t a x e s o r an e q u i v a l e n t annual c a s h payment. A l t h o u g h the method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be compensated an e q u a l amount. 1. F o r how l o n g have you l i v e d i n the Vancouver a r e a ? l e s s than 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. Would you be w i l l i n g t o a c c e p t a d e c r e a s e i n y o u r annual t a x e s o r an annual payment o f $10 i f as a r e s u l t a v e r a g e a r e a a i r q u a l i t y l e v e l s d e c l i n e d ? Yes . ^ No Now, answer e i t h e r a o r b. a. I f no, would you be w i l l i n g t o a c c e p t a d e c r e a s e i n y o u r annual t a x e s o r an annual payment o f $25? Yes>* No b. I f y e s , would you be w i l l i n g t o a c c e p t a d e c r e a s e i n y o u r annual t a x e s o r an annual payment o f $5? Yes No I 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f t h e goods which we buy. Do you have any comments about t h e p o s s i b i l i t y o f r e c e i v i n g monetary payments i n r e t u r n f o r a c c e p t i n g lower l e v e l s o f e n v i r o n m e n t a l q u a l i t y ? 187 AIR QUALITY OPTIONS 3d In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and t h e m a i n t e n a n c e o f h i g h l e v e l s o f e n v i r o n m e n t a l q u a l i t y i n t h e Vancouver a r e a . You have been s e l e c t e d as p a r t o f a l a r g e sample o f Vancouver a r e a r e s i d e n t s , and y o u r answers t o the f o l l o w i n g q u e s t i o n s w i l l s e r v e as an i n p u t t o a U n i v e r s i t y o f B r i t i s h Colum-b i a s t u d e n t r e s e a r c h p r o j e c t . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on t h e a v e r a g e a i r q u a l i t y o f t h e l o c a l e n v i r o n -ment. As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o \u00E2\u0080\u0094 c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, lower s t a n d a r d s o f e n v i r o n -mental p r o t e c t i o n c o u l d r e s u l t i n s u b s t a n t i a l f i n a n c i a l s a v i n g s f o r t h e P r o v i n c i a l government. We a r e wanting t o g e t an e s t i m a t e o f the amount o f monetary compensation t h a t you would r e q u i r e i n o r d e r t o a c c e p t lower l e v e l s o f a i r q u a l i t y i n t h e Vancouver a r e a . When a n s w e r i n g the f o l l o w i n g ques-t i o n s , c o n s i d e r t h a t s a v i n g s w i l l be d i s t r i b u t e d t h r o u g h a d e c r e a s e i n P r o v i n c i a l t a x e s o r an e q u i v a l e n t annual c a s h payment. A l t h o u g h the method o f payment i s s t i l l u n der c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be compensated an e q u a l amount. 1. For how l o n g have you l i v e d i n t h e Vancouver a r e a ? l e s s than 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do y o u l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. Would you be w i l l i n g t o a c c e p t a d e c r e a s e i n y o u r annual t a x e s o r an annual payment o f $10, i f as a r e s u l t a v e r a g e a r e a a i r q u a l i t y l e v e l s d e c l i n e d ? y e s no Now, answer e i t h e r a o r b? a. I f no, would you be w i l l i n g t o a c c e p t a d e c r e a s e i n y o u r annual t a x e s o r an annual payment o f $25? Yes No b. I f y e s , would you be w i l l i n g t o a c c e p t a d e c r e a s e i n y o u r annual t a x e s o r an annual payment o f $5? yes no 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s form any o f t h e goods which we buy. Do you have any comments about the p o s s i b i l i t y o f r e c e i v i n g monetary payments i n r e t u r n f o r a c c e p t i n g lower l e v e l s o f e n v i r o n m e n t a l q u a l i t y ? AIR QUALITY OPTIONS 188 4 a In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and t h e maintenance o f h i g h l e v e l s o f e n v i r o n m e n t a l q u a l i t y i n t h e Vancouver a r e a . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on the a v e r a g e a i r q u a l i t y o f the l o c a l e n v i r o n m e n t . As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o - - c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, we a r e w a n t i n g t o g e t an e s t i m a t e o f t h e amount the P r o v i n c i a l Government s h o u l d be w i l l i n g t o spend i n o r d e r t o e n s u r e c o n t i n u e d h i g h l e v e l s o f a i r q u a l i t y i n t h e Vancouver a r e a . When a n s w e r i n g t h e f o l l o w i n g q u e s t i o n s , c o n s i d e r ; t h a t a d d i t i o n a l e x p e n d i t u r e s w i l l be f i n a n c e d t h r o u g h t h e c r e a t i o n o f a s p e c i a l \" e n v i r o n m e n t a l q u a l i t y \" t a x . 1. F o r how l o n g have you l i v e d i n t h e Vancouver a r e a ? l e s s than 1 y e a r 1-5 y e a r s more th a n 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. Suppose t h a t , j u s t as each t a x p a y e r now makes annual payments t o c h a r i t a b l e o r g a n i z a t i o n s o r t o m a i n t a i n t h e q u a l i t y o f V a n c o u v e r ' s s c h o o l s y s t e m , you c o u l d make an annual payment t o m a i n t a i n t h e q u a l i t y o f Vancouver's e n v i r o n m e n t . In o r d e r t o h e l p d e t e r m i n e t h e P r o v i n c e ' s r e l a t i v e e x p e n d i -t u r e p r i o r i t i e s , we would l i k e you t o compare t h e amount o f money t h e P r o v i n c e s h o u l d spend on e n v i r o n m e n t a l q u a l i t y t o t h e amount you f e e l i s c u r r e n t l y s p e n t on t h e goods and s e r v i c e s shown below. In each c a s e , p l e a s e i n d i c a t e the r e l a t i v e magnitude o f t h e P r o v i n c e ' s i d e a l _ expen-d i t u r e l e v e l s by r a t i n g each e n t r y on a s c a l e o f 1 t o 7. G i v e a r a n k i n g o f 1 t o y o u r c h o i c e f o r t h e h i g h e s t payment and a r a n k i n g o f 7 t o y o u r c h o i c e f o r t h e l o w e s t payment. m e d i c a l & h e a l t h \"care \" e d u c a t i o n c o s m e t i c s j e w e l r y i c h a r i t a b l e o r g a n i z a t i o n s e n v i r o n m e n t a l q u a l i t y t o b a c c o and a l c o h o l Now, p l e a s e i n d i c a t e t h e a p p r o x i m a t e d o l l a r amount you f e e l you c u r r e n t l y spend each y e a r on y o u r h i g h e s t and l o w e s t r a n k e d e x p e n d i t u r e c h o i c e s ( i n o t h e r words, numbers 1 and 7 ) . i j I Number 1 i s Number 7 i s j Annual E x p e n d i t u r e = $ Annual E x p e n d i t u r e = $ 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f t h e goods which we buy. Do you have any comments about h a v i n g t o pay f o r e n v i r o n m e n t a l q u a l i t y ? 189 SEX: M F AIR QUALITY OPTIONS In t h i s s u r v e y , we e n c o u r a g e you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and the maintenance o f h i g h l e v e l s of. e n v i r o n m e n t a l q u a l i t y i n the Vancouver a r e a . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new d e v e l o p m e n t s would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on the a v e r a g e a i r q u a l i t y o f t h e l o c a l e n v i r o n -ment. As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o \u00E2\u0080\u0094 c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, we a r e w a n t i n g t o get an e s t i m a t e o f t h e amount you would be w i l l i n g t o spend i n o r d e r t o e n s u r e c o n t i n u e d h i g h l e v e l s o f a i r q u a l i t y i n the Vancouver a r e a . When answering t h e f o l l o w i n g q u e s t i o n s , c o n s i d e r t h a t a d d i t i o n a l e x p e n d i t u r e s w i l l be f i n a n c e d t h r o u g h t h e c r e a t i o n o f a s p e c i a l \" e n v i r o n m e n t a l q u a l i t y \" t a x . A l t h o u g h t h e method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be r e q u i r e d t o pay an equal amount. 1. F o r how l o n g have you l i v e d i n t h e Vancouver a r e a ? l e s s t h a n 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. Would you be w i l l i n g t o pay an annual t a x o f $100 i n o r d e r t o p r e v e n t a d e c l i n e , i n a v e r a q e a r e a a i r q u a l i t y l e v e l s ? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o pay an annual t a x o f $200? Yes No b. I f no, would you be w i l l i n g t o pay an annual t a x o f $25? Yes No 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f t h e goods which we buy. Do you have any comments about h a v i n g t o pay f o r e n v i r o n m e n t a l q u a l i t y ? 190 SEX: M F 4c AIR QUALITY OPTIONS In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth and t h e m a i n t e n a n c e o f h i g h l e v e l s of. e n v i r o n m e n t a l q u a l i t y i n the Vancouver a r e a . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on the a v e r a g e a i r q u a l i t y o f t h e l o c a l e n v i r o n -ment. As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o \u00E2\u0080\u0094 c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, we a r e wanting t o g e t an e s t i m a t e o f t h e amount you would be w i l l i n g t o spend i n o r d e r t o e n s u r e c o n t i n u e d h i g h l e v e l s o f a i r q u a l i t y i n t h e Vancouver a r e a . When an s w e r i n g t h e f o l l o w i n g q u e s t i o n s , c o n s i d e r t h a t a d d i t i o n a l e x p e n d i t u r e s w i l l be f i n a n c e d t h r o u g h t h e c r e a t i o n o f a s p e c i a l \" e n v i r o n m e n t a l q u a l i t y \" t a x . A l t h o u g h t h e method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be r e q u i r e d t o pay an equal amount. 1. For how l o n g have you l i v e d i n the Vancouver a r e a ? l e s s t h a n 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? r e n t e d s e l f - o w n e d 3. Would you be w i l l i n g t o pay an annual t a x o f $100 i n o r d e r t o p r e v e n t a d e c l i n e i n a v e r a g e a r e a a i r q u a l i t y l e v e l s ? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o pay an annual t a x o f $200? Yes No b. I f no, would you be w i l l i n g t o pay an annual t a x o f $50? Yes No 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f t h e goods which we buy. Do you - have any comments about h a v i n g t o pay f o r e n v i r o n m e n t a l q u a l i t y ? 191 SEX: M F AIR QUALITY OPTIONS In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t r a d e - o f f s between c o n t i n u e d i n d u s t r i a l growth.and t h e m a i n t e n a n c e o f h i g h l e v e l s of. e n v i r o n m e n t a l q u a l i t y i n the Vancouver a r e a . S e v e r a l o f t h e p l a n s f o r t h i s a r e a e n v i s i o n a s u b s t a n t i a l l o n g - t e r m i n c r e a s e i n i n d u s t r i a l a c t i v i t y and l o c a l employment o p p o r t u n i t i e s . A l t h o u g h new developments would be r e q u i r e d t o meet l e g a l p o l l u t i o n s t a n d a r d s and t o u t i l i z e p o l l u t i o n c o n t r o l equipment, c o n t i n u e d r e g i o n a l growth c o u l d s t i l l r e s u l t i n a d v e r s e e f f e c t s on the a v e r a g e a i r q u a l i t y o f t h e l o c a l e n v i r o n -ment. As a r e s u l t , v i s i b i l i t y would d e c l i n e and s e v e r e smog c o n d i t i o n s \u00E2\u0080\u0094 a s f r e q u e n t l y o c c u r i n o t h e r l a r g e m e t r o p o l i t a n a r e a s such as Los A n g e l e s o r T o r o n t o \u00E2\u0080\u0094 c o u l d become much more f r e q u e n t . S i n c e p r o t e c t i o n o f t h e e n v i r o n m e n t c o s t s money, we a r e wanting t o get an e s t i m a t e o f t h e amount you would be w i l l i n g t o spend i n o r d e r t o e n s u r e c o n t i n u e d h i g h l e v e l s o f a i r q u a l i t y i n t h e V a n c o u v e r a r e a . When answe r i n g the f o l l o w i n g q u e s t i o n s , c o n s i d e r t h a t a d d i t i o n a l e x p e n d i t u r e s w i l l be f i n a n c e d t h r o u g h t h e c r e a t i o n o f a s p e c i a l \" e n v i r o n m e n t a l q u a l i t y \" t a x . A l t h o u g h t h e method o f payment i s s t i l l under c o n s i d e r a t i o n , assume t h a t a l l s t u d e n t s and o t h e r a r e a r e s i d e n t s w i l l be r e q u i r e d t o pay an equal amount. 1. F o r how l o n g have you l i v e d i n the Vancouver a r e a ? l e s s t h a n 1 y e a r 1-5 y e a r s more than 5 y e a r s 2. Do you l i v e i n r e n t e d o r s e l f - o w n e d h o u s i n g ? . r e n t e d s e l f -owned 3. Would you be w i l l i n g t o pay an annual t a x o f $10 i n o r d e r t o p r e v e n t a d e c l i n e i n a v e r a g e a r e a a i r q u a l i t y l e v e l s ? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o pay an annual t a x o f $50? Yes No b. I f no, would you be w i l l i n g t o pay an annual t a x o f $5? Yes No 4. A l l o f us now pay f o r c l e a n a i r i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r t a x e s and i n c r e a s e d p r i c e s f o r many o f the goods which we buy. Do you have any comments about h a v i n g t o pay f o r e n v i r o n m e n t a l q u a l i t y ? 192 AVERSIVENESS SCALE The aim o f t h i s s t u d y i s t o measure the a v e r s i v e n e s s o f d i f f e r e n t u n p l e a s a n t e v e n t s , by a s k i n g p e o p l e how s t r o n g l y t h e y wish t h a t each o f t h e s e e v e n t s wouldn't happen t o them. We use a s c a l e i n which an e v e n t g e t s a s c o r e o f 0 i f you do n o t mind i t happening t o y o u , and a . h i g h s c o r e i f you have a s t r o n g wish t o a v o i d i t . F i r s t , c o n s i d e r the f o l l o w i n g r e f e r e n c e e v e n t : \"Having a stomach f l u f o r - a week, w i t h nausea and f e v e r . \" A s s i g n t h i s e v e n t a s c o r e o f 10. With t h i s a n c h o r i n mind, i n d i c a t e how s t r o n g l y you wish t h a t each o f the e v e n t s l i s t e d below s h o u l d n ' t happen t o you by c i r c l i n g a number on the s c a l e below the e v e n t . I f you wish t o use a number g r e a t e r than 20, w r i t e y o u r r e s p o n s e i n the space p r o v i d e d a t t h e r i g h t o f t h e s c a l e . Read a l l t h e d e s c r i p t i o n s q u i c k l y b e f o r e you s t a r t m a r k i n g . Your r a t i n g s s h o u l d i n d i c a t e how you o r d e r t h e d i f f e r e n t e v e n t s , by t h e s t r e n g t h o f y o u r wish t h a t t h e y s h o u l d n ' t happen t o y o u . 1. You need t o use c r u t c h e s f o r 3 weeks a f t e r s p r a i n i n g y o u r a n k l e i n a f a l l . You s l i p p e d w h i l e w a l k i n g t o t h e bus on a snowy day. 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u ~~ 2. You a c c i d e n t a l l y throw an e n v e l o p e c o n t a i n i n g $10 i n t o t h e f i r e . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u ~ 3. You a r e o u t f o r d i n n e r w i t h a new f r i e n d o f t h e o p p o s i t e sex. A t t h e end o f an e x c e l l e n t meal you a c c i d e n t a l l y s p i l l a cup o f hot c o f f e e on y o u r f r i e n d ' s l a p . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 4. You buy a used c a r worth $1000; 6 months l a t e r i t s t o p s r u n n i n g due t o y o u r n e g l i g e n c e . You have i t towed t o a garage and a r e t o l d i t w i l l c o s t $300 t o r e p a i r . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 _ f l u 5. You buy t h e l a s t t i c k e t f o r a T o t t e r y a t a f a i r . A s t r a n g e r who i s s t a n d -i n g n e a r b y a s k s t o buy t h e t i c k e t from you and you a g r e e . L a t e r you hear t h a t t h i s p e r s o n won a $50 p r i z e . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 _ f l u 193 5a 6. Your w a l l e t i s s t o l e n i n t h e swimming pool d r e s s i n g room; i n s i d e were a l l y o u r ID c a r d s and $20 c a s h . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 7. You i n v i t e s e v e r a l f r i e n d s o v e r f o r d i n n e r and f i x a s p e c i a l meal u s i n g e x o t i c i n g r e d i e n t s . The n e x t day you have a s e v e r e stomach ache and l e a r n t h a t two o f y o u r g u e s t s w e r e . b r i e f l y h o s p i t a l i z e d f o r t r e a t m e n t . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 8. You a r e h e l p i n g a f r i e n d who i s moving t o a new a p a r t m e n t ; as you a r e c a r r y i n g h i s s t e r e o o u t t o t h e c a r you s l i p and t h e s t e r e o i s b a d l y smashed. 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 9. You r e a d i n t h e newspaper t h a t e n v i r o n m e n t a l q u a l i t y i n Vancouver has d e c l i n e d s u b s t a n t i a l l y i n r e c e n t y e a r s , and t h a t a v e r a g e a r e a a i r p o l l u t i o n l e v e l s a r e now t h e w o r s t o f any major Canadian c i t y . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u ,;, 10. Your c a r r uns o u t o f gas on a c o u n t r y r o a d l a t e a t n i g h t ; you have t o walk n e a r l y a m i l e t o t h e n e a r e s t house and must wake up the owners t o g e t a s s i s t a n c e . 0 1 2 3 4 5 6 7. 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 194 5b 5. Your w a l l e t i s s t o l e n i n t h e swimming pool d r e s s i n g room; i n s i d e were a l l y o u r ID c a r d s and $20 c a s h . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f 1 u 7. You i n v i t e s e v e r a l f r i e n d s o v e r f o r d i n n e r and f i x a s p e c i a l meal u s i n g e x o t i c i n g r e d i e n t s . The next day you have a s e v e r e stomach ache and l e a r n t h a t two o f y o u r g u e s t s were b r i e f l y h o s p i t a l i z e d f o r t r e a t m e n t . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 3. You a r e h e l p i n g a f r i e n d , who i s moving t o a new a p a r t m e n t ; as you a r e c a r r y i n g h i s s t e r e o o u t t o the c a r you s l i p and t h e s t e r e o i s b a d l y smashed. 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 9. You r e a d i n t h e newspaper t h a t e n v i r o n m e n t a l q u a l i t y i n Vancouver has d e c l i n e d s u b s t a n t i a l l y i n r e c e n t y e a r s , and t h a t a v e r a g e a r e a a i r p o l l u t i o n l e v e l s a r e now the w o r s t o f any major Canadian c i t y . You remember t h a t a n a r r o w l y d e f e a t e d i s s u e i n l a s t y e a r ' s e l e c t i o n s c o n -c e r n e d whether an \" e n v i r o n m e n t a l q u a l i t y \" t a x s h o u l d be i n s t i t u t e d , but you were p r e s s e d f o r time t h a t day and d i d n ' t v o t e . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 10. Your c a r runs o u t o f gas on a c o u n t r y r o a d l a t e a t n i g h t ; you have t o walk n e a r l y a m i l e t o t h e n e a r e s t house and must wake up t h e owners t o g e t a s s i s t a n c e . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 195 6a 6. Your w a l l e t i s s t o l e n i n t h e swimming pool d r e s s i n g room; i n s i d e were a l l y o u r ID c a r d s and $20 c a s h . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 7. You i n v i t e s e v e r a l f r i e n d s o v e r f o r d i n n e r and f i x a s p e c i a l meal u s i n g e x o t i c i n g r e d i e n t s . The n e x t day you have a s e v e r e stomach ache and l e a r n t h a t two o f y o u r g u e s t s were b r i e f l y h o s p i t a l i z e d f o r t r e a t m e n t . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 _ f l u 8. You a r e h e l p i n g a f r i e n d who i s moving t o a new ap a r t m e n t ; as you a r e c a r r y i n g h i s s t e r e o o u t t o the c a r you s l i p and t h e s t e r e o i s b a d l y smashed. 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 _ f l u 9. You r e a d i n t h e newspaper t h a t t he development o f new mines and t o w n s i t e s i n n o r t h e r n B r i t i s h Columbia i s t h r e a t e n i n g t he c o n t i n u e d s u r v i v a l o f s e v e r a l r a r e s p e c i e s o f l a r g e mammals. 0 1 2. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 10. Your c a r runs o u t o f gas on a c o u n t r y r o a d l a t e a t n i g h t ; you have t o walk n e a r l y a m i l e t o t h e n e a r e s t house and must wake up t h e owners t o g e t a s s i s t a n c e . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 196 6b 6. Your w a l l e t i s s t o l e n i n t h e swimming pool d r e s s i n g room; i n s i d e were a l l y o u r ID c a r d s and $20 c a s h . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 1. You i n v i t e s e v e r a l f r i e n d s o v e r f o r d i n n e r and f i x a s p e c i a l meal u s i n g e x o t i c i n g r e d i e n t s . The next day you have a s e v e r e stomach ache and l e a r n t h a t two o f y o u r g u e s t s were b r i e f l y h o s p i t a l i z e d f o r t r e a t m e n t . 0 1 2 3 4 5 6 7 8 9' 10 11 12 13 14 15 16 17 18 19 20 f l u 3. You a r e h e l p i n g a f r i e n d who i s moving t o a new a p a r t m e n t ; as you a r e c a r r y i n g h i s s t e r e o o u t t o the c a r you s l i p and t h e s t e r e o i s b a d l y smashed. 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 9. You r e a d i n t h e newspaper t h a t t h e development o f new mines and t o w n s i t e s i n n o r t h e r n B r i t i s h Columbia i s t h r e a t e n i n g t h e c o n t i n u e d s u r v i v a l o f s e v e r a l r a r e s p e c i e s o f l a r g e mammals. You remember t h a t a n a r r o w l y d e f e a t e d i s s u e i n l a s t y e a r ' s e l e c t i o n s c o n c e r n e d whether development . s h o u l d be h a l t e d t o p r o t e c t t h e endangered a n i m a l s , but you were p r e s s e d f o r t ime t h a t day and d i d n ' t v o t e . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 _ f l u 10. Your c a r r uns o u t o f gas on a c o u n t r y r o a d l a t e a t n i g h t ; you have t o walk n e a r l y a m i l e t o the n e a r e s t house and must wake up t h e owners t o g e t a s s i s t a n c e . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 _ f l u 197 7a 6. Your w a l l e t i s s t o l e n i n the swimming pool d r e s s i n g room; i n s i d e were a l l y o u r ID c a r d s and $20 c a s h . 0 1 2 3 '4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 7. You i n v i t e s e v e r a l f r i e n d s o v e r f o r d i n n e r and f i x a s p e c i a l meal u s i n g e x o t i c i n g r e d i e n t s . The n e x t day you have a s e v e r e stomach ache and l e a r n t h a t two o f y o u r g u e s t s were b r i e f l y h o s p i t a l i z e d f o r t r e a t m e n t . 0 1 2 3 4 5 6 7 8 9 10 11\" 12 13 14 15 16 17 18 19 20 f l u 8. You a r e h e l p i n g a f r i e n d who i s moving t o a new a p a r t m e n t ; as you a r e c a r r y i n g h i s s t e r e o o u t t o the e a r you s l i p and t h e s t e r e o i s b a d l y smashed. 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 9. You hear on the r a d i o t h a t 3 p e r s o n s i n j u r e d i n a l o c a l a i r c r a s h have d i e d due t o a s h o r t a g e o f b l o o d . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 10. Your c a r r uns o u t o f gas on a c o u n t r y r o a d l a t e a t n i g h t ; you have t o walk n e a r l y a m i l e t o t h e n e a r e s t house and must wake up the owners t o g e t a s s i s t a n c e . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u i 198 7b 6. Your w a l l e t i s s t o l e n i n the swimming pool d r e s s i n g room; i n s i d e were a l l y o u r ID c a r d s and $20 c a s h . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 7. You i n v i t e s e v e r a l f r i e n d s o v e r f o r d i n n e r and f i x a s p e c i a l meal u s i n g e x o t i c i n g r e d i e n t s . The next day you have a s e v e r e stomach ache and l e a r n t h a t two o f y o u r g u e s t s were b r i e f l y h o s p i t a l i z e d f o r t r e a t m e n t . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 8. You a r e h e l p i n g a f r i e n d who i s moving t o a new a p a r t m e n t ; as you a r e c a r r y i n g h i s s t e r e o o u t t o the c a r you s l i p and t h e s t e r e o i s b a d l y smashed. 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 9. You hear on t h e r a d i o t h a t 3 p e r s o n s i n j u r e d i n a l o c a l a i r c r a s h have d i e d due t o a s h o r t a g e o f b l o o d . You remember t h a t l a s t week you r e c e i v e d a t e l e p h o n e c a l l from a H o s p i t a l v o l u n t e e r and were asked to c o n t r i b u t e b l o o d , but you were i n a r u s h and r e f u s e d . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 10. Your c a r r uns o u t o f gas on a c o u n t r y r o a d l a t e a t n i g h t ; you have t o walk n e a r l y a m i l e t o the n e a r e s t house and must wake up the owners to g e t a s s i s t a n c e . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 199 7c 6. Your w a l l e t i s s t o l e n i n t h e swimming pool d r e s s i n g room; i n s i d e were a l l y o u r ID c a r d s and $20 c a s h . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 7. You i n v i t e s e v e r a l f r i e n d s o v e r f o r d i n n e r and f i x a s p e c i a l meal u s i n g e x o t i c i n g r e d i e n t s . The n e x t day you have a s e v e r e stomach ache and l e a r n t h a t two o f y o u r g u e s t s were b r i e f l y h o s p i t a l i z e d f o r t r e a t m e n t . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 8. You a r e h e l p i n g a f r i e n d who i s moving t o a new a p a r t m e n t ; as you a r e c a r r y i n g h i s s t e r e o o u t t o the c a r you s l i p and t h e s t e r e o i s b a d l y smashed. 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 9. You h e a r on t h e r a d i o t h a t 3 p e r s o n s i n j u r e d i n a l o c a l a i r c r a s h have d i e d due t o a s h o r t a g e o f b l o o d . You remember t h a t l a s t week you were st o p p e d on t h e s t r e e t by a H o s p i t a l v o l u n t e e r and were asked t o c o n t r i -bute b l o o d , but you were i n a r u s h and r e f u s e d . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 10. Your c a r r uns o u t o f gas. on a c o u n t r y r o a d l a t e a t n i g h t ; you have t o walk n e a r l y a m i l e t o t h e n e a r e s t house and must wake up the owners t o g e t a s s i s t a n c e . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 f l u 200 8a We a r e i n t e r e s t e d i n d e t e r m i n i n g t h e monetary v a l u e which you p l a c e upon a number o f p o t e n t i a l l y p l e a s a n t e x p e r i e n c e s and t h i n g s . Below you w i l l f i n d 10 b r i e f d e s c r i p t i o n s . Imagine t h a t you have been g i v e n t he o p p o r t u n i t y t o p u r c h a s e each i t e m o r e x p e r i e n c e . No a d d i t i o n a l i n f o r m a t i o n i s p r o v i d e d o t h e r than t h a t shown. On t h e a s s o c i a t e d s c a l e , p l e a s e c i r c l e t h e d o l l a r amount which b e s t i n d i c a t e s t h e maximum amount o f money which you would be w i l l i n g t o pay t o e x p e r i e n c e t he e v e n t o r t o o b t a i n t h e i t e m which i s d e s -c r i b e d . 1. A t i c k e t e n t i t l i n g you t o d i n n e r f o r two a t the Vancouver r e s t a u r a n t o f y o u r c h o i c e . $15.00 20.00 25.00 30.00 35.00 2. An o r g a n i c avocado. $ 0.25 .50 .75 1.00 1.25 3. A s e t o f 4 handmade p o t t e r y mugs. $ 5.00 10.00 15.00 20.00- 25.00 4. A l o t t e r y t i c k e t which g i v e s you a 1 i n 30 chance t o win a p o c k e t - s i z e e l e c t r o n i c c a l c u l a t o r . $ 0.20 .40 .60 .80 1.00 5. A q u a r t o f pure maple s y r u p . $ 2.00 4.00 6.00 8.00 10.00 6. The one day r e n t a l o f an u m b r e l l a on a v e r y r a i n y day. $ 0.50 1.50 2.50 3.50 4.50 7. Two t i c k e t s t o a c o n c e r t o f y o u r c h o i c e a t the Orpheum T h e a t r e . $ 5:00 10.00 15.00 20.00 25.00 8. An empty s e a t on a v e r y crowded bus; you have a h a l f - h o u r r i d e ahead o f y ou. . $ 0.20 .40 .60 .80 1.00 9. A 4 - f o o t t a l l p o t t e d i n d o o r p l a n t . $ 5.00 10.00 15.00 20.00 25.00 10. A p l a c e a t t h e f r o n t o f t h e l i n e i n a busy cinema queue. $ 1.00' 2v00 3.00 4.00 5.00 201 8b We a r e i n t e r e s t e d i n d e t e r m i n i n g t h e monetary v a l u e which you p l a c e upon a number o f p o t e n t i a l l y p l e a s a n t e x p e r i e n c e s and t h i n g s . Below you w i l l f i n d 10 b r i e f d e s c r i p t i o n s . Imagine t h a t you have been g i v e n t h e o p p o r t u n i t y t o p u r c h a s e each i t e m o r e x p e r i e n c e a t t h e p r i c e shown. No n e g o t i a t i o n i s p e r -m i t t e d , and whether you d e c i d e t o p u r c h a s e t h e i t e m i s e n t i r e l y y o u r own d e c i s i o n . P l e a s e i n d i c a t e by c i r c l i n g e i t h e r \" y e s \" o r \"no\" whether you would be w i l l i n g t o pay t h i s p r i c e i n o r d e r t o e x p e r i e n c e the e v e n t o r o b t a i n the i t e m which i s d e s c r i b e d . 1 1. A t i c k e t e n t i t l i n g you t o d i n n e r f o r two a t the V a n c o u v e r r e s t a u r a n t o f y o u r c h o i c e . $15.00 Yes No 2. An o r g a n i c a v o c a d o . $ 0.25 Yes No 3. A s e t o f 4 handmade p o t t e r y mugs. $ 5.00 Yes No 4. A l o t t e r y t i c k e t which g i v e s you a 1 i n 30 chance t o win a p o c k e t - s i z e e l e c t r o n i c c a l c u l a t o r . $ 0.20 Yes No 5. A q u a r t o f pure maple s y r u p . $ 2.00 Yes No 6. The one day r e n t a l o f an u m b r e l l a on a v e r y r a i n y day. $ 0.50 Yes No 7. Two t i c k e t s t o a c o n c e r t o f y o u r c h o i c e a t the Orpheum T h e a t r e . $ 5.00 Yes No 8. An empty s e a t on a v e r y crowded bus; you h a v e - a ^ n a l f - h o u r r i d e ahead o f y o u . $ 0.20 Yes No 9. A 4 - f o o t t a l l p o t t e d i n d o o r p l a n t . $ 5.00 Yes No 10. A p l a c e a t t h e f r o n t o f t h e l i n e i n a busy cinema queue. $ 1.00 Yes No 202 8c We a r e i n t e r e s t e d i n d e t e r m i n i n g the monetary v a l u e which you p l a c e upon a number o f p o t e n t i a l l y p l e a s a n t e x p e r i e n c e s and t h i n g s . Below you w i l l f i n d 10 b r i e f d e s c r i p t i o n s . Imagine t h a t you have been g i v e n t h e o p p o r t u n i t y t o p u r c h a s e each i t e m o r e x p e r i e n c e a t the p r i c e shown. No n e g o t i a t i o n i s p e r m i t t e d , and whether you d e c i d e t o p u r c h a s e t h e i t e m i s e n t i r e l y y o u r own d e c i s i o n . P l e a s e i n d i c a t e by c i r c l i n g e i t h e r \" y e s \" o r \"no\" whether you would be w i l l i n g t o pay t h i s p r i c e i n o r d e r t o e x p e r i e n c e the e v e n t o r o b t a i n the i t e m which i s d e s c r i b e d . 1. A t i c k e t e n t i t l i n g you t o d i n n e r f o r two a t t h e V ancouver r e s t a u r a n t o f y o u r c h o i c e . $25.00 Yes No 2. An o r g a n i c a v o c a d o . , $ 0.75 Yes No 3. A s e t o f 4 handmade p o t t e r y mugs. $ 15.00 Yes No 4. A l o t t e r y t i c k e t which g i v e s you a 1 i n 30 c h a n c e t o win a p o c k e t - s i z e e l e c t r o n i c c a l c u l a t o r . $ 0.60 Yes No 5. A q u a r t o f p u r e maple s y r u p . $ 6.00 Yes No 6. The one day r e n t a l o f an u m b r e l l a on a v e r y r a i n y day. $ 2.50 Yes No 7. Two t i c k e t s t o a c o n c e r t o f y o u r c h o i c e a t the Orpheum T h e a t r e . $15.00 Yes No 8. An empty s e a t on a v e r y crowded bus; you have * ' h a l f - h o u r r i d e ahead o f y o u . $ 0.60 Yes No 9. A 4 - f o o t t a l l p o t t e d i n d o o r p l a n t . $15.00 Yes No 10. A p l a c e a t t h e f r o n t o f t h e l i n e i n a busy cinema queue. $ 3.00 Yes No 203 8d We a r e i n t e r e s t e d i n d e t e r m i n i n g the monetary v a l u e which you p l a c e upon a number o f p o t e n t i a l l y p l e a s a n t e x p e r i e n c e s and t h i n g s . Below you w i l l f i n d 10 b r i e f d e s c r i p t i o n s . Imagine t h a t you have been g i v e n the o p p o r t u n i t y t o p u r c h a s e each i t e m o r .experience a t the p r i c e shown. Mo n e g o t i a t i o n i s p e r m i t t e d , and whether you d e c i d e t o p u r c h a s e t h e i t e m i s e n t i r e l y y o u r own d e c i s i o n . P l e a s e i n d i c a t e by c i r c l i n g e i t h e r \" y e s \" o r \"no\" whether you a r e w i l l i n g t o pay t h i s p r i c e i n o r d e r t o e x p e r i e n c e t h e e v e n t o r o b t a i n t h e i t e m which i s d e s c r i b e d . 1. A t i c k e t e n t i t l i n g you t o d i n n e r f o r two a t t h e V ancouver r e s t a u r a n t o f y o u r choice.. $35.00 Yes No 2. An o r g a n i c a v o c a d o . $ 1.25 Yes No 3. A s e t o f 4 handmade p o t t e r y mugs. $25.00 Yes No 4. A l o t t e r y t i c k e t which g i v e s you a 1 i n 30 chance to win a p o c k e t - s i z e e l e c t r o n i c c a l c u l a t o r . $ 1.00 Yes No 5. A q u a r t o f pure maple s y r u p . $10.00 Yes No 6. The one day r e n t a l o f an u m b r e l l a on a v e r y r a i n y day. $ 4.50 Yes No 7. Two t i c k e t s t o a c o n c e r t o f y o u r c h o i c e a t the Orpheum T h e a t r e . $25.00 Yes No 8. An empty s e a t on a v e r y crowded bus; y o u have ff-half-hour r i d e ahead o f y o u . $ 1.00 Yes No 9. A 4 - f o o t t a l l p o t t e d i n d o o r p l a n t . $25.00 Yes No 10. A p l a c e a t t h e f r o n t o f t h e l i n e i n a busy cinema queue. $ 5.00 Yes No 204 8e We a r e i n t e r e s t e d i n d e t e r m i n i n g t h e monetary v a l u e which you p l a c e upon a number o f p o t e n t i a l l y p l e a s a n t e x p e r i e n c e s and t h i n g s . Below you w i l l f i n d 10 b r i e f d e s c r i p t i o n s . Imagine t h a t you have been g i v e n the o p p o r t u n i t y t o p u r c h a s e each i t e m o r e x p e r i e n c e t h r o u g h a p r o c e s s o f s u c c e s s i v e b i d s , as used i n an a u c t i o n . In each c a s e , t h e b i d d i n g w i l l s t a r t a t the p r i c e shown and i n c r e a s e by t h e s p e c i f i e d amount u n t i l t he sum which i s c h a r g e d i s f i r s t c o n s i d e r e d t o be e x c e s s i v e , a t which p o i n t you no l o n g e r want t o p u r c h a s e t h e good. On t h e a s s o c i a t e d s c a l e , p l e a s e r e c o r d the d o l l a r amount which b e s t i n d i c a t e s t h i s maximum amount o f money which you would be w i l l i n g t o pay t o e x p e r i e n c e t h e e v e n t o r t o o b t a i n t h e i t e m which i s d e s c r i b e d . 1. A t i c k e t e n t i t l i n g you t o d i n n e r f o r two a t t h e Vancouver r e s t a u r a n t o f y o u r c h o i c e . S t a r t i n g P r i c e : $15.00 I n c r e a s e by : $ 5.00 $ 2. An o r g a n i c avocado. S t a r t i n g P r i c e : $ 0.25 I n c r e a s e by : $ 0 . 2 5 $ 3. A s e t o f 4 handmade p o t t e r y mugs. S t a r t i n g P r i c e : $ 5.00 I n c r e a s e by : $ 5.00 $ A l o t t e r y t i c k e t which g i v e s you a 1 i n 30 chance t o win a p o c k e t - s i z e e l e c t r o n i c c a l c u l a t o r . S t a r t i n g P r i c e : $ 0.20 I n c r e a s e by : $ 0.20 $ A q u a r t o f pure maple s y r u p . S t a r t i n g P r i c e : $ 2.00 I n c r e a s e by : $ 2.00 $ The one day r e n t a l o f an u m b r e l l a on a v e r y r a i n y day. S t a r t i n g P r i c e : $ 0.50 I n c r e a s e by : $ 1.00 $ 7. Two t i c k e t s t o a c o n c e r t o f y o u r c h o i c e a t t h e Orpheum T h e a t r e . S t a r t i n g P r i c e : $ 5.00 I n c r e a s e by : $ 5.00 $ 8. An empty s e a t on a v e r y crowded bus; you have a h a l f - h o u r r i d e ahead o f y o u ' S t a r t i n g P r i c e : $ 0.20 I n c r e a s e by : $ 0.20 $ 9. A 4 - f o o t t a l l p o t t e d i n d o o r p l a n t . S t a r t i n g P r i c e : $ 5.00 I n c r e a s e by : $ 5.00 $ 10. A p l a c e a t t h e f r o n t o f t h e l i n e i n a busy cinema queue. S t a r t i n g P r i c e : $ 1 . 0 0 I n c r e a s e by : $ 1.00 $ 205 8 f We a r e i n t e r e s t e d i n d e t e r m i n i n g t h e monetary v a l u e which you p l a c e upon a number o f p o t e n t i a l l y p l e a s a n t e x p e r i e n c e s and t h i n g s . Below y o u w i l l f i n d 10 b r i e f d e s c r i p t i o n s . Imagine t h a t you have been g i v e n t he o p p o r t u n i t y t o pur c h a s e each i t e m o r e x p e r i e n c e t h r o u g h a p r o c e s s o f s u c c e s s i v e b i d s , as used i n an a u c t i o n . In each c a s e , t he b i d d i n g w i l l s t a r t a t the p r i c e shown and i n c r e a s e by the s p e c i f i e d amount u n t i l t h e sum which i s c h a r g e d i s f i r s t c o n s i d e r e d t o be e x c e s s i v e , a t which p o i n t you no l o n g e r want t o pu r c h a s e t h e good. On t h e a s s o c i a t e d s c a l e , p l e a s e r e c o r d t he d o l l a r amount which b e s t i n d i c a t e s t h i s maximum amount o f money which you would be w i l l i n g t o pay t o e x p e r i e n c e t h e e v e n t o r t o o b t a i n t h e i t e m which i s d e s c r i b e d . 1. A t i c k e t e n t i t l i n g you t o d i n n e r f o r two a t t h e Vancouver r e s t a u r a n t o f y o u r c h o i c e . S t a r t i n g P r i c e : $15.00 I n c r e a s e by : $10.00 $ 2. An o r g a n i c avocado. S t a r t i n g P r i c e : $ 0.25 I n c r e a s e by : $ 0.50 $ 3. A s e t o f 4 handmade p o t t e r y mugs. S t a r t i n g P r i c e : $ 5.00 I n c r e a s e by : $10.00 $ 4. A l o t t e r y t i c k e t which g i v e s you a 1 i n 30 chance t o win a p o c k e t - s i z e e l e c t r o n i c c a l c u l a t o r . S t a r t i n g P r i c e : $ 0.20 I n c r e a s e by : $ 0.40 5. A q u a r t o f pure maple s y r u p . S t a r t i n g P r i c e : $ 2.00 I n c r e a s e by : $ 4,00 $ The one day r e n t a l o f an u m b r e l l a on a v e r y r a i n y ' day. S t a r t i n g P r i c e : $ 0.50 I n c r e a s e by : $ 1.00 7. Two t i c k e t s t o a c o n c e r t o f y o u r c h o i c e a t t h e Orpheum T h e a t r e . S t a r t i n g P r i c e : $ 5.00 I n c r e a s e by : $10.00 $ 8. An empty s e a t on a v e r y crowded bus; you have a h a l f - h o u r r i d e ahead o f y o u ' S t a r t i n g P r i c e : $ 0 . 2 0 I n c r e a s e by : $ 0.40 $ 9. A 4 - f o o t t a l l p o t t e d i n d o o r p l a n t . ! S t a r t i n g P r i c e : $ 5.00 I n c r e a s e by : $10.00 $ 10. A p l a c e a t t h e f r o n t o f t h e l i n e i n a busy cinema queue. S t a r t i n g P r i c e : $ l.OOl.eo In c r e a s e by : $ 2.00 $ 206 8g We a r e i n t e r e s t e d i n d e t e r m i n i n g t h e monetary f a l u e which you p l a c e upon a number o f p o t e n t i a l l y p l e a s a n t e x p e r i e n c e s and t h i n g s . Below you w i l l f i n d 10 b r i e f d e s c r i p t i o n s . Imagine t h a t you have been g i v e n the o p p o r t u n i t y t o p u r c h a s e each i t e m o r e x p e r i e n c e . No a d d i t i o n a l i n f o r m a t i o n i s p r o v i d e d o t h e r than t h a t shown. In t h e space p r o v i d e d , p l e a s e w r i t e i n the d o l l a r amount which b e s t i n d i c a t e s t h e maximum amount o f money which you \"would be w i l l i n g t o pay t o e x p e r i e n c e t h e e v e n t o r t o o b t a i n t h e i t e m which i s d e s -c r i b e d . 1. A t i c k e t e n t i t l i n g you t o d i n n e r f o r two a t t h e Vancouver r e s t a u r a n t o f y o u r c h o i c e . 2. An o r g a n i c avocado. 3. A s e t o f 4 handmade p o t t e r y mugs. 4. A l o t t e r y t i c k e t which g i v e s you a.1 i n 30 chance t o win a p o c k e t - s i z e e l e c t r o n i c c a l c u l a t o r . 5. A q u a r t o f pure maple s y r u p . 6. The one day r e n t a l o f an u m b r e l l a on a v e r y r a i n y day. 7. Two t i c k e t s t o a c o n c e r t o f y o u r c h o i c e a t t h e Orpheum T h e a t r e . 8. An empty s e a t on a v e r y crowded bus; you have a h a l f - h o u r r i d e ahead o f you. 9. A 4 - f o o t t a l l p o t t e d i n d o o r p l a n t . 10. A p l a c e a t t h e f r o n t o f the l i n e i n a busy cinema queue. 207 9a We a r e i n t e r e s t e d i n d e t e r m i n i n g t h e monetary v a l u e which you p l a c e upon a number o f p o t e n t i a l l y p l e a s a n t e x p e r i e n c e s and t h i n g s . Below you w i l l f i n d 10 b r i e f d e s c r i p t i o n s . Imagine i n each c a s e t h a t you own the i t e m o r the r i g h t t o the e x p e r i e n c e which i s d e s c r i b e d and t h a t i t i s now up f o r s a l e . No a d d i t i o n a l i n f o r m a t i o n i s p r o v i d e d o t h e r than t h a t shown. On the a s s o c i -a t e d s c a l e , p l e a s e c i r c l e t h e d o l l a r amount which b e s t i n d i c a t e s t h e minimum amount o f money which you would be w i l l i n g t o a c c e p t i n r e t u r n f o r g i v i n g up the i t e m o r y o u r r i g h t t o e x p e r i e n c e t he e v e n t which i s d e s c r i b e d . 1. A t i c k e t e n t i t l i n g you t o d i n n e r f o r two a t the Vancouver r e s t a u r a n t o f y o u r c h o i c e . $15.00 20.00 25.00 30.00 35.00 2. An o r g a n i c a v o c a d o . $ 0.25 .50 .75 1.00 1.25 3. A s e t o f 4 handmade p o t t e r y mugs. $ 5.00 10.00 15.00 20.00 25.00 4. A l o t t e r y t i c k e t which g i v e s you a 1 i n 30 chance t o win a p o c k e t - s i z e e l e c t r o n i c c a l c u l a t o r . $ 0.20 .40 .60 .80 1.00 5. A q u a r t o f pure maple s y r u p . $ 2.00 4.00 6.00 8.00 10.00 6. The one day r e n t a l o f an u m b r e l l a on a v e r y r a i n y day. $ 0.50 1.50 2.50 3.50 4.50 7. Two t i c k e t s t o a c o n c e r t o f y o u r c h o i c e a t the Orpheum T h e a t r e . $ 5.00 10.00 15.00 , 20.00 25.00 8. An empty s e a t on a v e r y crowded b us; y o u h a v e - B ' h a l f - h o u r r i d e ahead o f you. $ 0.20 .40 .60 .80 1.00 9. A 4 - f o o t t a l l p o t t e d i n d o o r p l a n t . $ 5.00 10.00 15.00 20.00 25.00 10. A p l a c e a t the f r o n t o f the l i n e i n a busy cinema queue. $ 1.00 2.00 3.00 4.00 5.00 208 9b We a r e i n t e r e s t e d i n d e t e r m i n i n g the monetary v a l u e which you p l a c e upon a number o f p o t e n t i a l l y p l e a s a n t e x p e r i e n c e s and t h i n g s . Below you w i l l f i n d 10 b r i e f d e s c r i p t i o n s . Imagine i n each c a s e t h a t you own the i t e m o r the r i g h t t o t h e e x p e r i e n c e which i s d e s c r i b e d and t h a t i t i s now up f o r s a l e a t t h e p r i c e shown. No n e g o t i a t i o n i s p e r m i t t e d , and whether you d e c i d e t o s e l l t h e i t e m i s e n t i r e l y y o u r own d e c i s i o n . P l e a s e i n d i c a t e by c i r c l i n g e i t h e r \" y e s \" o r \"no\" whether you would be w i l l i n g t o a c c e p t t h i s p r i c e i n r e t u r n f o r g i v i n g up the i t e m o r y o u r r i g h t t o e x p e r i e n c e t h e e v e n t which i s d e s c r i b e d . 1. A t i c k e t e n t i t l i n g you t o d i n n e r f o r two a t the Vancouver r e s t a u r a n t o f y o u r c h o i c e . $15.00 Yes No 2. An o r g a n i c avocado. $ 0.25 Yes No 3. A s e t o f 4 handmade p o t t e r y mugs. $ 5.00 Yes No 4. A l o t t e r y t i c k e t which g i v e s you a 1 i n 30 chance t o win a p o c k e t - s i z e e l e c t r o n i c c a l c u l a t o r . :- ' $ 0.20 Yes No 5. A q u a r t o f pure maple s y r u p . $ 2.00 Yes No 6. The one day r e n t a l o f an u m b r e l l a on a v e r y r a i n y day. $ 0.50 Yes No 7. Two t i c k e t s t o a c o n c e r t o f y o u r c h o i c e a t the Orpheum T h e a t r e . $ 5.00 Yes No 8. An empty s e a t on a v e r y crowded bus; y o u have fl'haif-hour r i d e ahead o f y o u . $ 0.20 Yes ' No 9. A 4 - f o o t t a l l p o t t e d i n d o o r p l a n t . $ 5.00 Yes No i 10. A p l a c e a t t h e f r o n t o f t h e l i n e i n a busy cinema queue. < $ 1.00 , Yes No 209 9c We are interested in determining the monetary value which you place upon a number of potentially pleasant experiences and things. Below you will find 10 brief descriptions. Imagine in each case that you own the item or the right to the experience which is described and that it is now up for sale at the price shown. Mo negotiation is permitted, and whether you decide to sell the item is entirely your own decision. Please indicate by circling either \"yes\" or \"no\" whether you would be willing to accept this price in return for giving up the item or your right to experience the event which is described. 1. A ticket entitling you to dinner for two at the Vancouver restaurant of your choice. $25.00 Yes No 2. An organic avocado. $ 0.75 Yes No 3. A set of 4 handmade pottery mugs. $15.00 Yes. No 4. A lottery ticket which gives you a 1 in 30 chance to win a pocket-size electronic calculator. $ 0.60 Yes No 5. A quart of pure maple syrup. $ 6.00 Yes No 6. The one day rental of an umbrella on a very rainy day. $ 2.50 Yes No 7. Two tickets to a concert of your choice at the Orpheum Theatre. $15.00 . Yes No 8. An empty seat on a very crowded bus; you have -B-haif-hour ride ahead of you. $ 0.60 Yes No 9. A 4-foot tall potted indoor plant. $15.00 Yes No 10. A place at the front of the line in a busy cinema queue. $3.00 Yes No 210 9d We a r e i n t e r e s t e d i n d e t e r m i n i n g t h e monetary v a l u e which you p l a c e upon a number o f p o t e n t i a l l y p l e a s a n t e x p e r i e n c e s and t h i n g s . Below you w i l l f i n d 10 b r i e f d e s c r i p t i o n s . Imagine i n each c a s e t h a t you own the i t e m o r the r i g h t t o the e x p e r i e n c e which i s d e s c r i b e d and t h a t i t i s now up f o r s a l e a t t he p r i c e shown. No n e g o t i a t i o n i s p e r m i t t e d , and whether you d e c i d e t o s e l l t h e i t e m i s ' e n t i r e l y y o u r own d e c i s i o n . P l e a s e i n d i c a t e by c i r c l i n g e i t h e r \" y e s \" o r \"no\" whether you would be w i l l i n g t o a c c e p t t h i s p r i c e i n r e t u r n f o r g i v i n g up t h e i t e m o r y o u r r i g h t t o e x p e r i e n c e t h e e v e n t which i s d e s c r i b e d . 1. A t i c k e t e n t i t l i n g you t o d i n n e r f o r two a t the Vancouver r e s t a u r a n t o f y o u r c h o i c e . $35.00 Yes No 2. An o r g a n i c avocado. $ 1.25 Yes No 3. A s e t o f 4 handmade p o t t e r y mugs. ; $25.00 Yes No 4. A l o t t e r y t i c k e t which g i v e s you a 1 i n 30 chance t o win a p o c k e t - s i z e e l e c t r o n i c c a l c u l a t o r . $1.00 Yes No 5. A q u a r t o f pure maple s y r u p . $10.00 Yes No 6. The one day r e n t a l o f an u m b r e l l a on a v e r y r a i n y day. $ 4.50 Yes No 7. Two t i c k e t s t o a c o n c e r t o f y o u r c h o i c e a t the Orpheum T h e a t r e . $25.00 Yes No . 8. An empty s e a t on a v e r y crowded bus; y o u have -f c ' h a i f - h o u r r i d e ahead o f y o u . $ 1.00 Yes No 9. A 4 - f o o t t a l l p o t t e d i n d o o r p l a n t . $25.00 Yes No 10. A p l a c e a t the f r o n t o f t h e l i n e i n a busy cinema queue. $ 5.00 Yes No i 211 9e We a r e i n t e r e s t e d i n d e t e r m i n i n g the monetary v a l u e which you p l a c e upon a number o f p o t e n t i a l l y p l e a s a n t e x p e r i e n c e s and t h i n g s . Below you w i l l f i n d 10 b r i e f d e s c r i p t i o n s . Imagine i n each c a s e t h a t you own the i t e m o r t h e r i g h t t o the e x p e r i e n c e which i s d e s c r i b e d and t h a t i t i s now up f o r s a l e t h r o u g h a p r o c e s s o f s u c c e s s i v e b i d s , as used i n an a u c t i o n . In each c a s e , the b i d d i n g w i l l s t a r t a t t h e p r i c e shown and i n c r e a s e by t h e s p e c i f i e d amount u n t i l t h e sum which i s o f f e r e d i s c o n s i d e r e d t o be j u s t s u f f i c i e n t , a t which p o i n t you a g r e e t o s e l l t he good. On t h e a s s o c i a t e d s c a l e , p l e a s e r e c o r d t h e d o l l a r amount which b e s t i n d i c a t e s t h i s minimum amount o f money which you would be w i l l i n g t o a c c e p t i n r e t u r n f o r g i v i n g up the i t e m o r y o u r r i g h t t o e x p e r i e n c e the e v e n t which i s d e s c r i b e d . 1. A t i c k e t e n t i t l i n g you t o d i n n e r f o r two a t the Vancouver r e s t a u r a n t o f y o u r c h o i c e . S t a r t i n g P r i c e : $15.00 I n c r e a s e by : $ 5.00 $ 2. An o r g a n i c avocado S t a r t i n g P r i c e : $ 0.25 I n c r e a s e by : $ 0.25 $ A s e t o f 4 handmade p o t t e r y mugs. S t a r t i n g P r i c e : $ 5.00 I n c r e a s e by : $ 5.00 $ A l o t t e r y t i c k e t which g i v e s you a 1 i n 30 chance t o win a p o c k e t - s i z e e l e c t r o n i c c a l c u l a t o r . S t a r t i n g P r i c e : $ 0.20 I n c r e a s e by : $ 0.20 $ A q u a r t o f pure maple s y r u p . S t a r t i n g P r i c e : $ 2.00 I n c r e a s e by : $ 2.00 $ The one day r e n t a l o f an u m b r e l l a on a v e r y r a i n y day. S t a r t i n g P r i c e : $ 0,50 I n c r e a s e by : $ 1,00 $ 7. Two t i c k e t s t o a c o n c e r t o f y o u r c h o i c e a t t h e Orpheum T h e a t r e . S t a r t i n g P r i c e : $ 5.00 I n c r e a s e by : $ 5.00 $ 8. An empty s e a t on a v e r y crowded bus; you have a h a l f - h o u r r i d e ahead o f y o u- S t a r t i n g P r i c e : $ 0 . 2 0 I n c r e a s e by : $ 0.20 $ 9. A 4 - f o o t t a l l p o t t e d indoor, p l a n t . S t a r t i n g P r i c e : $ 5.00 I n c r e a s e by : $ 5.00 $ 10. A p l a c e a t the f r o n t o f t h e l i n e i n a busy cinema queue. S t a r t i n g P r i c e : $ 1.00\u00E2\u0080\u00A2 I n c r e a s e by : $ 1.00 $ 212 9 f We are i n t e r e s t e d i n d e t e r m i n i n g the monetary v a l u e which you p l a c e upon a number o f p o t e n t i a l l y p l e a s a n t e x p e r i e n c e s and t h i n g s . Below you w i l l f i n d 10 b r i e f d e s c r i p t i o n s . Imagine i n each case t h a t you own the ite m o r the r i g h t to t h e e x p e r i e n c e which i s d e s c r i b e d and t h a t i t i s now up f o r s a l e through a p r o c e s s o f s u c c e s s i v e b i d s , as used i n an a u c t i o n . In each c a s e , the b i d d i n g w i l l s t a r t a t the p r i c e shown and i n c r e a s e by the s p e c i f i e d amount u n t i l the sum which i s o f f e r e d i s c o n s i d e r e d to be j u s t s u f f i c i e n t , a t which p o i n t you agree to s e l l t h e good. On the a s s o c i a t e d s c a l e , p l e a s e r e c o r d the d o l l a r amount which b e s t i n d i c a t e s t h i s m i n i m u m amount o f money which you would be w i l l i n g to a c c e p t i n r e t u r n f o r g i v i n g up the ite m o r your r i g h t to e x p e r i e n c e the event which i s d e s c r i b e d . 1. A t i c k e t e n t i t l i n g you to d i n n e r f o r two a t the Vancouver r e s t a u r a n t o f your c h o i c e . S t a r t i n g P r i c e : $15.00 In c r e a s e by : $10.00 $ 2. An o r g a n i c avocado. S t a r t i n g P r i c e : $ 0.25 I n c r e a s e by : $ 0.25 $ 3. A s e t o f 4 handmade p o t t e r y mugs. S t a r t i n g P r i c e : $ 5.00 I n c r e a s e by : $10.00 $ 4. A l o t t e r y t i c k e t which g i v e s you a 1 i n 30 chance t o win a p o c k e t - s i z e e l e c t r o n i c c a l c u l a t o r . S t a r t i n g P r i c e : $ 0.20 In c r e a s e by : $ 0.40 $ 5. A q u a r t o f pure maple s y r u p . S t a r t i n g P r i c e : $ 2.00 In c r e a s e by : $ 4.00 $ The one day r e n t a l o f an u m b r e l l a on a v e r y r a i n y day. S t a r t i n g P r i c e : $ 0.50 In c r e a s e by : $ 2.00 $ Two t i c k e t s to a c o n c e r t o f y o u r c h o i c e a t the Orpheum T h e a t r e . S t a r t i n g P r i c e : $ 5.00 In c r e a s e by : $10.00 . $ An empty s e a t on a v e r y crowded bus; you have a h a l f - h o u r r i d e ahead o f you. S t a r t i n g P r i c e : $ 0.20 In c r e a s e by : $ 0.40 $ A 4 - f o o t t a l l p o t t e d i n d o o r p l a n t . S t a r t i n g P r i c e : $ 5.00 In c r e a s e by : $10.00 $ 10. A p l a c e a t the f r o n t o f the l i n e i n a busy cinema queue. S t a r t i n g P r i c e : $ 1.00 In c r e a s e by : $ 2.00 $ 213 9g We a r e i n t e r e s t e d i n d e t e r m i n i n g t h e monetary v a l u e which you p l a c e upon a number o f p o t e n t i a l l y p l e a s a n t e x p e r i e n c e s and t h i n g s . Below you w i l l f i n d 10 b r i e f d e s c r i p t i o n s . Imagine i n each c a s e t h a t you own the i t e m o r t h e r i g h t t o t h e e x p e r i e n c e which i s d e s c r i b e d and t h a t i t i s now up f o r s a l e . No a d d i t i o n a l i n f o r m a t i o n i s p r o v i d e d o t h e r than t h a t shown. In the space p r o v i d e d , p l e a s e w r i t e i n the d o l l a r amount which b e s t i n d i c a t e s t h e minimum amount o f money which you would be w i l l i n g t o a c c e p t i n r e t u r n f o r g i v i n g up t h e i t e m o r y o u r r i g h t t o e x p e r i e n c e the e v e n t which i s d e s c r i b e d . 1. A t i c k e t e n t i t l i n g you t o d i n n e r f o r two a t the Vancouver r e s t a u r a n t o f y o u r c h o i c e . 2. An o r g a n i c avocado. 3. A s e t o f 4 handmade p o t t e r y mugs. 4. A l o t t e r y t i c k e t which g i v e s you a 1 i n 30 chance t o win a p o c k e t - s i z e e l e c t r o n i c c a l c u l a t o r . 5. A q u a r t o f pure maple sy r u p . 6. The one day r e n t a l o f an u m b r e l l a on a v e r y r a i n y day. 7. Two t i c k e t s t o a c o n c e r t o f y o u r c h o i c e a t t h e Orpheum T h e a t r e . 8. An empty s e a t on a v e r y crowded bus; you have a h a l f - h o u r r i d e ahead o f you. 9. A 4 - f o o t t a l l p o t t e d i n d o o r p l a n t . 10. A p l a c e a t t h e f r o n t o f the l i n e i n a busy cinema queue. 214 10a We a r e i n t e r e s t e d i n d e t e r m i n i n g t he monetary v a l u e which you p l a c e upon a number o f p o t e n t i a l l y p l e a s a n t e x p e r i e n c e s and t h i n g s . Below you w i l l f i n d 10 b r i e f d e s c r i p t i o n s . Imagine i n each case t h a t you have been g i v e n the o p p o r t u n i t y t o p u r c h a s e the i t e m o r e x p e r i e n c e which i s d e s c r i b e d . P l e a s e c i r c l e t h e number on t h e a s s o c i a t e d d o l l a r s c a l e which most c l o s e l y i n d i c a t e s how much money you would pay t o e x p e r i e n c e t he e v e n t o r t o o b t a i n the i t e m which i s d e s c r i b e d . 1. A t i c k e t e n t i t l i n g you t o d i n n e r f o r two a t t h e Vancouver r e s t a u r a n t o f y o u r c h o i c e . $10.00 $20.00 $30.00 $40.00 $50.00 2. An o r g a n i c avocado. $.20 $.40 $.60 $.80 $1.00 3. A s e t o f f o u r handmade p o t t e r y mugs. $2.00 $6.00 $10.00 $14.00 $18.00 4. A l o t t e r y t i c k e t which g i v e s you a 1 i n 40 chance t o win a b o t t l e o f impo r t e d champagne. $.20 $.40 $.60 $.80 $1.00 5. A q u a r t o f pure maple s y r u p . $2.00 $4.00 $6.00 $8.00 $10.00 6. The one-day r e n t a l o f an u m b r e l l a on; a v e r y r a i n y day. $.50 $1.50 $2.50 $3.50 $4.50 7. Two t i c k e t s t o a c o n c e r t o f y o u r c h o i c e a t the Orpheum T h e a t r e . $5.00 $10.00 $15.00 $20.00 $25.00 8. An empty s e a t on a v e r y crowded bus; you have a o n e - h a l f hour r i d e ahead o f you. $.20 $.40 !$.60 $.80 $1.00 9. A t e n - i n c h p o t t e d i n d o o r p l a n t . $2.00 $4.00 $6.00 $8.00 $10.00 10. A p l a c e a t the f r o n t o f t h e l i n e i n a busy cinema queue. $.50 $1.50 $2.50 $3.50 $4.50 215 10b We a r e i n t e r e s t e d i n d e t e r m i n i n g t h e monetary v a l u e which you p l a c e upon a number o f p o t e n t i a l l y p l e a s a n t e x p e r i e n c e s and t h i n g s . Below you w i l l f i n d 10 b r i e f d e s c r i p t i o n s . Imagine i n each case t h a t you own' t h e i t e m o r the r i g h t t o t h e e x p e r i e n c e which i s d e s c r i b e d . P l e a s e c i r c l e the number on t h e a s s o c i a t e d d o l l a r s c a l e which.most c l o s e l y i n d i c a t e s t h e p r i c e a t which you would s e l l t h e i t e m o r y o u r r i g h t t o the e x p e r i e n c e which i s d e s c r i b e d . 1. A t i c k e t e n t i t l i n g you t o d i n n e r f o r two a t t h e Vancouver r e s t a u r a n t o f y o u r c h o i c e . $10.00 $20.00 $30.00 $40.00 $50.00 2. An o r g a n i c avocado. $.20 $.40 $.60 $.80 $1.00 3. A s e t o f f o u r handmade p o t t e r y mugs. $2.00 $6.00 $10.00 $14.00 $18.00 4. A l o t t e r y t i c k e t which g i v e s you a l ' i n 40 chance t o win a b o t t l e o f im p o r t e d champagne. $.20 $.40 $.60 $.80 $1.00 5. A q u a r t o f pure maple s y r u p . $2.00 $4.00 $6.00 $8.00 $10.00 6. The one-day r e n t a l o f an u m b r e l l a on a v e r y r a i n y day. $.50 \u00E2\u0080\u00A2 $1.50 $2.50 $3.50 $4.50 7. Two t i c k e t s t o a c o n c e r t o f y o u r c h o i c e a t t h e Orpheum T h e a t r e . $5.00 $10.00 $15.00 $20.00 $25.00 8. An empty s e a t on a v e r y crowded bus; you have a o n e - h a l f hour r i d e ahead o f you. $.20 $.40 $.60 $.80 $1.00 9. A t e n - i n c h p o t t e d i n d o o r p l a n t . $2.00 $4.00 $6.00 $8.00 $10.00 10. A p l a c e a t t h e f r o n t . o f t he l i n e i n a busy cinema queue. $.50 $1.50 $2.50 $3.50 $4.50 216 Economic V a l u e o f t h e B.C. P r o v i n c i a l Museum a. In t h i s s u r v e y , we e n c o u r a g e you t o e x p r e s s y o u r views r e g a r d i n g t h e economic v a l u e o f t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a . The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by p e o p l e o f a l l ages. A wide ran g e o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompanying s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f the P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e t h e e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l r e s o u r c e h e r i t a g e . W h i l e t h e c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t s money, e n t r a n c e t o the P r o v i n c i a l Museum i s f r e e o f c h a r g e . In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e w a n t i n g t o g e t an e s t i m a t e o f t h e amount you would be w i l l i n g t o spend i n o r d e r t o v i s i t t h e Museum i f an e n t r a n c e f e e were r e q u i r e d . Assume t h a t a l l a d u l t s w i l l be r e q u i r e d t o pay an e q u a l amount. 1. Do you l i v e i n B r i t i s h Columbia? Yes No 2. I f y e s , i n which o f t h e f o l l o w i n g a r e a s do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , M a i n l a n d B.C. 3. I f no, i n which o f t h e f o l l o w i n g a r e a s do you l i v e ? o t h e r P r o v i n c e o f Canada o t h e r c o u n t r y 4. Would you be w i l l i n g t o pay an e n t r a n c e f e e o f $3.00 i n o r d e r t o v i s i t t h e P r o v i n c i a l Museum? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o pay an e n t r a n c e f e e o f $5.00? Yes No b. I f no, would you be w i l l i n g ' t o pay an e n t r a n c e f e e o f $1.00? Yes No 5. A l l B r i t i s h Columbia t a x p a y e r s now pay f o r t h e o p e r a t i o n o f t h e P r o v i n c i a l Museum i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r P r o v i n c i a l income t a x e s and s l i g h t l y i n c r e a s e d p r i c e s f o r some o f the goods which, we buy. Do you have any comments about u s i n g e n t r a n c e f e e s r a t h e r than g e n e r a l t a x revenues as a means o f p a y i n g f o r Museum s e r v i c e s ? 217 Economic Value of the B.C. Provincial Museum a. In this survey, we encourage you to express your views regarding the economic value of the B.C. Provincial Museum in Victoria. The Museum exhibits serve a number of functions and are viewed by people of all ages. A wide range of objects made by traditional Indian cultures are displayed for public viewing and preserved for research purposes. Artifacts of early B.C. explorers, traders, and loggers are exhibited along with characteristic displays and accompanying stories of more recent B.C. l i f e . Representative animal and plant species of the Province are also collected and shown in natural settings to illustrate the evolution and diversity of B.C.'s natural resource heritage. While the collection, classification and exhibition of these objects costs money, entrance to the Provincial Museum is free of charge. In order to roughly measure its economic value, we are wanting to get an estimate of the amount you would be willing to spend in order to visit the Museum i f an entrance fee were required. Assume that all adults will be required to pay an equal amount. No 1. Do you live in British Columbia? Yes _ 2. If yes, in which of the following areas do you live? Victoria other, Vancouver Island Vancouver other, Mainland B.C. 3. If no, in which of the following areas do you live? other Province of Canada other country 4. Would you be willing to pay an entrance fee of $k.00 in order to visit the Provincial Museum? Yes No Now, answer either a or b. a. If yes, would you be willing to pay an entrance fee of $5.00? Yes b. If no, would you be willing to pay an entrance fee of $3.00? Yes All British Columbia taxpayers now pay for the operation of the Provincial Museum in a variety of ways, including higher Provincial income taxes and slightly increased prices for some of the goods whichrwe buy. Do you have any comments about using entrance fees rather than general tax revenues as a means of paying for Museum services? No No 218 Economic Value o f the B.C. P r o v i n c i a l Museum b. In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g the economic v a l u e o f the B.C. P r o v i n c i a l Museum i n V i c t o r i a . The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and are viewed by people o f a l l ages. A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompany-i n g s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f the P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e t he e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l r e s o u r c e h e r i t a g e . While the c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t s money, e n t r a n c e t o the P r o v i n c i a l Museum i s f r e e o f c h a r g e . In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e wanting t o g e t an e s t i m a t e o f the amount you would be w i l l i n g t o spend i n o r d e r t o v i s i t t h e Museum i f an e n t r a n c e f e e were r e q u i r e d . Assume t h a t a l l a d u l t s w i l l be r e q u i r e d t o pay an equal amount. 1. Do you l i v e i n B r i t i s h Columbia? Yes No 2. I f y e s , i n which o f the f o l l o w i n g a r e a s do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , Mainland B.C. 3. I f no, i n which o f the f o l l o w i n g a r e a s do you l i v e ? o t h e r P r o v i n c e o f Canada o t h e r c o u n t r y How many days do you p l a n t o spend i n V i c t o r i a ? 1 day 2-5 days more than 5 days 4. To a s s i s t you i n d e v e l o p i n g a frame o f r e f e r e n c e , we have noted below the a p p r o x i -mate a d u l t e n t r a n c e p r i c e s which must be p a i d t o v i s i t a number o f o t h e r e x h i b i t s . Vancouver Aquarium $3.75 B u t c h a r t Gardens, V i c t o r i a . . . . $5.00 D i s n e y l a n d , Los A n g e l e s , ... $9.25 Undersea World, V i c t o r i a $3.95 Sea World, San Diego $8.95 American Museum o f N a t u r a l H i s t o r y , New York C i t y $2.00 (s u g g e s t e d p r i c e In l i g h t o f the l e v e l o f payments shown above, would you be w i l l i n g t o pay an a d m i s s i o n p r i c e o f $3.00 i n o r d e r t o v i s i t the P r o v i n c i a l Museum? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o pay an e n t r a n c e f e e o f $5.00? Yes No b. I f no, would you be w i l l i n g t o pay an e n t r a n c e f e e o f $1.00? Yes No 5. A l l B r i t i s h Columbia t a x p a y e r s now pay f o r the o p e r a t i o n o f the P r o v i n c i a l Museum i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r 1 P r o v i n c i a l income taxes and s l i g h t l y i n c r e a s e d p r i c e s f o r some o f the goods which we buy. Do you have any comments about u s i n g e n t r a n c e f e e s r a t h e r than g e n e r a l tax revenues as a means o f p a y i n g f o r Museum s e r v i c e s ? r 219 Economic Value o f the B.C. P r o v i n c i a l Museum b. In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g the economic v a l u e o f the B.C. P r o v i n c i a l Museum i n V i c t o r i a . The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by p e o p l e o f a l l ages. A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompany-i n g s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f the P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e the e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l r e s o u r c e h e r i t a g e . W h i l e the c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t s money, e n t r a n c e t o the P r o v i n c i a l Museum i s f r e e o f c h a r g e . In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e w a n t i n g t o get an e s t i m a t e o f the amount you would be w i l l i n g t o spend each y e a r i n o r d e r t o v i s i t the Museum i f an e n t r a n c e f e e were r e q u i r e d . Assume t h a t a l l a d u l t s w i l l be r e q u i r e d t o pay an equal amount. 1. Do you l i v e i n B r i t i s h Columbia?^ Yes No 2. I f y e s , i n which o f t h e f o l l o w i n g a r e a s do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , M a i n l a n d B.C. 3. I f no, i n which o f the f o l l o w i n g a r e a s do you l i v e ? o t h e r P r o v i n c e o f Canada o t h e r c o u n t r y How many days do you p l a n t o spend i n V i c t o r i a ? 1 day 2-5 days more than 5 days 4. To a s s i s t you i n d e v e l o p i n g a frame o f r e f e r e n c e , we have noted below the a p p r o x i -mate a d u l t e n t r a n c e p r i c e s which must be p a i d to v i s i t a number o f o t h e r e x h i b i t s . -. Vancouver Aquarium $3.75 B u t c h a r t Gardens, V i c t o r i a . . . . $5.00 D i s n e y l a n d , Los A n g e l e s , . . . $9.25 Undersea World, V i c t o r i a $3.95 Sea World, San Diego $8.95 American Museum o f N a t u r a l : H i s t o r y , New York C i t y $2.00 ( s u g g e s t e d p r i c e ) In l i g h t o f the l e v e l o f payments shown above, would you be w i l l i n g t o pay an a d m i s s i o n p r i c e o f $4.00 i n o r d e r to v i s i t the P r o v i n c i a l Museum? Yes No ' Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o pay an e n t r a n c e f e e o f $5.00? Yes No b. I f no, would you be w i l l i n g to pay an e n t r a n c e f e e o f $3.00? Yes No 5. A l l B r i t i s h Columbia t a x p a y e r s now pay f o r the o p e r a t i o n o f the P r o v i n c i a l Museum i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r P r o v i n c i a l income t a x e s and s l i g h t l y i n c r e a s e d p r i c e s f o r some o f the goods which we buy. Do you have any comments about u s i n g e n t r a n c e f e e s r a t h e r than g e n e r a l t a x revenues as a means o f p a y i n g f o r Museum s e r v i c e s ? r 220 Economic V a l u e o f the B.C. P r o v i n c i a l Museum b. In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g the economic v a l u e o f t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a . The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by p e o p l e o f a l l a g e s . A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompany-i n g s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f t h e P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e t h e e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l r e s o u r c e h e r i t a g e . W h i l e the c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t s money, e n t r a n c e t o t h e P r o v i n c i a l Museum i s f r e e o f c h a r g e . In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e w a n t i n g t o g e t an e s t i m a t e o f t h e amount you would be w i l l i n g t o spend i n o r d e r t o v i s i t t h e Museum i f an e n t r a n c e f e e were r e q u i r e d . Assume t h a t a l l a d u l t s w i l l be r e q u i r e d t o pay an equal amount. 1. Do you l i v e i n B r i t i s h Columbia? Yes No 2. I f y e s , i n which o f the f o l l o w i n g a r e a s do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , M a i n l a n d B.C. 3. I f no, i n which o f the f o l l o w i n g a r e a s do you l i v e ? o t h e r P r o v i n c e o f Canada o t h e r c o u n t r y How many days do you p l a n t o spend i n V i c t o r i a ? 1 day 2-5 days more th a n 5 days ,4. To a s s i s t you i n d e v e l o p i n g a frame o f r e f e r e n c e , we have n o t e d below the a p p r o x i -mate a d u l t e n t r a n c e p r i c e s which must be p a i d t o v i s i t a number o f o t h e r e x h i b i t s . Vancouver Aquarium $3.75 B u t c h a r t Gardens, V i c t o r i a . . . . $5.00 C e n t e n n i a l Museum, Vancouver . $2.50 Undersea W o r l d , V i c t o r i a $3.95 Museum o f A n t h r o p o l o g y , Vane. $1.50 American Museum o f N a t u r a l H i s t o r y , New York C i t y $2.00 ( s u g g e s t e d p r i c e ) In l i g h t o f t h e l e v e l o f payments shown above, would you be w i l l i n g t o pay an a d m i s s i o n p r i c e o f $3.00 i n o r d e r t o v i s i t t h e P r o v i n c i a l Museum? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o pay an e n t r a n c e f e e o f $5.00? Yes No b. I f no, would you be w i l l i n g t o pay an e n t r a n c e f e e o f $1.00? Yes 'No 5. A l l B r i t i s h Columbia t a x p a y e r s now pay f o r t h e o p e r a t i o n o f the P r o v i n c i a l Museum i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r P r o v i n c i a l income t a x e s and s l i g h t l y i n c r e a s e d p r i c e s f o r some o f t h e goods which we buy. Do you have any comments about u s i n g e n t r a n c e f e e s r a t h e r t h a n g e n e r a l t a x revenues as a means o f p a y i n g f o r Museum s e r v i c e s ? 221 Economic V a l u e o f t h e B.C. P r o v i n c i a l Museum c. In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t he economic v a l u e o f t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a . The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by p e o p l e o f a l l ages. A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompany-i n g s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f th e P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e t h e e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l r e s o u r c e h e r i t a g e . While t h e c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t s money, e n t r a n c e t o t h e P r o v i n c i a l Museum i s f r e e , o f c h a r g e . In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e w a n t i n g t o g e t an e s t i m a t e o f t h e amount you would be w i l l i n g t o s p e n d i n o r d e r t o v i s i t the.Museum i f an e n t r a n c e f e e were r e q u i r e d . Assume t h a t a l l a d u l t s w i l l be r e q u i r e d t o pay an equal amount. 1. Do you l i v e i n B r i t i s h Columbia? Yes No 2. I f y e s , i n which o f t h e f o l l o w i n g a r e a s do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , M a i n l a n d B.C. 3. I f no, i n which o f t h e f o l l o w i n g a r e a s do you l i v e ? o t h e r P r o v i n c e o f Canada o t h e r c o u n t r y How many days do you p l a n t o spend i n V i c t o r i a ? 1 day 2-5 days more than 5 days 4. What i s t h e maximum e n t r a n c e f e e t h a t you would be w i l l i n g t o pay i n o r d e r t o v i s i t t h e P r o v i n c i a l Museum? $ 5. A l l B r i t i s h Columbia t a x p a y e r s now pay f o r the o p e r a t i o n o f the P r o v i n c i a l Museum i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r P r o v i n c i a l income t a x e s and s l i g h t l y i n c r e a s e d p r i c e s f o r some o f t h e goods which we buy. Do you have any comments about u s i n g e n t r a n c e f e e s r a t h e r than g e n e r a l t a x revenues as a means o f p a y i n g f o r Museum s e r v i c e s ? 222 Economic Value o f the B.C. P r o v i n c i a l Museum In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g the economic v a l u e o f the B.C. P r o v i n c i a l Museum i n V i c t o r i a . The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by p e o p l e o f a l l ages. A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s are d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompanying s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f the P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e the e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l r e s o u r c e h e r i t a g e . While the c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t money, e n t r a n c e t o the P r o v i n c i a l Museum i s f r e e o f c h a r g e . In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e wanting t o get an e s t i m a t e o f the amount you would be w i l l i n g t o spend i n o r d e r t o v i s i t the Museum i f an e n t r a n c e f e e were r e q u i r e d . Assume t h a t a l l a d u l t s w i l l be r e q u i r e d t o pay an equal amount. 1. Do you l i v e i n B r i t i s h Columbia? Yes No 2. I f y e s , i n which o f the f o l l o w i n g a r e a s do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , M a i n l a n d B.C. 3. I f no, i n which o f the f o l l o w i n g a r e a s do you l i v e ? o t h e r P r o v i n c e o f Canada o t h e r c o u n t r y 4. To a s s i s t you i n d e v e l o p i n g a frame o f r e f e r e n c e , we have noted below the approximate a d u l t e n t r a n c e p r i c e s which must be p a i d t o v i s i t a number o f o t h e r e x h i b i t s . ;.-Vancouver Aquarium $3.75 B u t c h a r t Gardens, V i c t o r i a .... $5.00 D i s n e y l a n d , Los Angeles . . . . $9.25 Undersea World, V i c t o r i a $3.95 Sea World, San Diego $8.95 American Museum o f N a t u r a l H i s t o r y , New York C i t y $2.00 (s u g g e s t e d p r i c e ) In l i g h t o f the l e v e l o f payments shown above, what i s the maximum f e e t h a t you would be w i l l i n g t o pay i n o r d e r t o v i s i t the P r o v i n c i a l Museum? $ 5. Do you have any comments about u s i n g e n t r a n c e f e e s r a t h e r than g e n e r a l tax revenues as a means o f p a y i n g f o r Museum s e r v i c e s ? 223 Economic Value o f t h e B.C. P r o v i n c i a l Museum d. In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g the economic v a l u e o f t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a . The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by p e o p l e o f a l l a g e s . A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompanying s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f t h e P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e t he e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l r e s o u r c e h e r i t a g e . W h i l e t h e c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t money, e n t r a n c e t o t h e P r o v i n c i a l Museum i s f r e e o f c h a r g e . In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e w a n t i n g t o g e t an e s t i m a t e o f t h e amount you would be w i l l i n g t o spend i n o r d e r t o v i s i t t h e Museum i f an e n t r a n c e f e e were r e q u i r e d . Assume t h a t a l l a d u l t s w i l l be r e q u i r e d t o pay an e q u a l amount. 1. Do y o u l i v e i n B r i t i s h Columbia? Yes No 2. I f y e s , i n which o f t h e f o l l o w i n g a r e a s do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , M a i n l a n d B.C. 3. I f no, i n which o f the f o l l o w i n g a r e a s do you l i v e ? o t h e r P r o v i n c e o f Canada o t h e r c o u n t r y 4. To a s s i s t y o u i n d e v e l o p i n g a frame o f r e f e r e n c e , we have n o t e d below t h e a p p r o x i m a t e a d u l t e n t r a n c e p r i c e s which must be p a i d t o v i s i t a number o f o t h e r e x h i b i t s . Vancouver Aquarium $3.75 B u t c h a r t Gardens, V i c t o r i a . . . . $5.00 C e n t e n n i a l Museum, Vancouver . . $2.50 Undersea W o r l d , V i c t o r i a $3.95 Museum o f A n t h r o p o l o g y , Vane. . $1.50 American Museum o f N a t u r a l H i s t o r y , New York C i t y $2.00 ( s u g g e s t e d p r i c e ) In l i g h t o f t h e l e v e l o f payments shown above, what i s the maximum f e e t h a t you would be w i l l i n g t o pay i n o r d e r t o v i s i t t h e P r o v i n c i a l Museum? $ : 5. Do you have any comments about u s i n g e n t r a n c e f e e s r a t h e r than g e n e r a l t a x r e v e n u e s as a means o f p a y i n g f o r l^luseum s e r v i c e s ? 224 Economic V a l u e o f t h e B.C. P r o v i n c i a l Museum e: In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t h e economic v a l u e o f t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a . The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by p e o p l e o f a l l ages. A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompany-i n g s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f th e P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e t h e e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l r e s o u r c e h e r i t a g e . While t h e c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t s money, e n t r a n c e t o the P r o v i n c i a l Museum i s f r e e o f c h a r g e . I n s t e a d , a l l o f us now pay f o r t h e o p e r a t i o n o f t h e Museum i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r P r o v i n c i a l income t a x e s and s l i g h t l y i n c r e a s e d p r i c e s f o r some o f t h e goods which we buy. In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e wanting t o e s t i m a t e t h e amount you a r e w i l l i n g t o spend each y e a r i n o r d e r t o e n s u r e t h a t t h e p r e s e n t q u a l i t y o f Museum e x h i b i t s i s m a i n t a i n e d . When an s w e r i n g t h e f o l l o w i n g q u e s t i o n s , assume t h a t payments w i l l c o n t i n u e t o be made as p a r t o f P r o v i n c i a l t a x ass e s s m e n t s and t h a t a l l a d u l t c i t i z e n s o f t h e P r o v i n c e w i l l be r e q u i r e d t o pay an equal amount. 1. In which o f t h e f o l l o w i n g a r e a s o f B.C. do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , M a i n l a n d B.C. 2. Would you be w i l l i n g t o make an annual t a x payment o f $3.00 t o e n s u r e t h a t t h e p r e s e n t q u a l i t y o f Museum e x h i b i t s i s m a i n t a i n e d ? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o make an annual payment o f $5.00? Yes No b. I f no, would y o u be w i l l i n g t o make an annual payment o f $1.00? Yes No' 3. Do you have any comments about u s i n g g e n e r a l t a x revenues r a t h e r than e n t r a n c e f e e s as a means o f p a y i n g f o r Museum s e r v i c e s ? 225 Economic V a l u e o f t h e B.C. P r o v i n c i a l Museum e.. In t h i s s u r v e y , we enc o u r a g e you t o e x p r e s s y o u r views r e g a r d i n g t h e economic v a l u e o f t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a . The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by p e o p l e o f a l l ages. A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompany-i n g s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f th e P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e t h e e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l r e s o u r c e h e r i t a g e . W h i l e t h e c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t s money, e n t r a n c e t o t h e P r o v i n c i a l Museum i s f r e e o f c h a r g e . I n s t e a d , a l l o f us now pay f o r t h e o p e r a t i o n o f t h e Museum i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r P r o v i n c i a l income t a x e s and s l i g h t l y i n c r e a s e d p r i c e s f o r some o f t h e goods which we buy. In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e w a n t i n g t o e s t i m a t e t h e amount you a r e w i l l i n g t o spend each y e a r i n o r d e r t o e n s u r e t h a t t h e p r e s e n t q u a l i t y o f Museum e x h i b i t s i s m a i n t a i n e d . When a n s w e r i n g t h e f o l l o w i n g q u e s t i o n s , assume t h a t payments w i l l c o n t i n u e t o be made as p a r t o f P r o v i n c i a l t a x as s e s s m e n t s and t h a t a l l a d u l t c i t i z e n s o f t h e P r o v i n c e w i l l be r e q u i r e d t o pay an equ a l amount. 1. In which o f t h e f o l l o w i n g a r e a s o f B.C. do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , M a i n l a n d B.C. 2. Would you be w i l l i n g t o make an annual t a x payment o f $5.00 t o e n s u r e t h a t t he p r e s e n t q u a l i t y o f Museum e x h i b i t s i s m a i n t a i n e d ? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o make an annual payment o f $ 1 G o 0 0 ? Yes No b. I f no, would you be w i l l i n g t o make an annual payment o f $3-00? Yes No 3. Do you have any comments about u s i n g g e n e r a l t a x revenu e s r a t h e r than e n t r a n c e f e e s as a means o f p a y i n g f o r Museum s e r v i c e s ? 226 Economic V a l u e o f t h e B.C. P r o v i n c i a l Museum e;* In t h i s s u r v e y , we enc o u r a g e you t o e x p r e s s y o u r views r e g a r d i n g t h e economic v a l u e o f t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a . The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by p e o p l e o f a l l a g e s . A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompany-i n g s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f t h e P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e t h e e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l r e s o u r c e h e r i t a g e . W h i l e t h e c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t s money, e n t r a n c e t o t h e P r o v i n c i a l Museum i s f r e e o f c h a r g e . I n s t e a d , a l l o f us now pay f o r t h e o p e r a t i o n o f t h e Museum i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r P r o v i n c i a l income t a x e s and s l i g h t l y i n c r e a s e d p r i c e s f o r some o f t h e goods which we buy. In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e w a n t i n g t o e s t i m a t e t h e amount you a r e w i l l i n g t o spend each y e a r i n o r d e r t o e n s u r e t h a t t h e p r e s e n t q u a l i t y o f Museum e x h i b i t s i s m a i n t a i n e d . When a n s w e r i n g t h e f o l l o w i n g q u e s t i o n s , assume t h a t payments w i l l c o n t i n u e t o be made as p a r t o f P r o v i n c i a l t a x as s e s s m e n t s and t h a t a l l a d u l t c i t i z e n s o f t h e P r o v i n c e w i l l be r e q u i r e d t o pay an equal amount. 1. In which o f t h e f o l l o w i n g a r e a s o f B.C. do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , M a i n l a n d B.C. 2. Would you be w i l l i n g t o make an annual t a x payment o f $10,OOto e n s u r e t h a t t h e p r e s e n t q u a l i t y o f Museum e x h i b i t s i s m a i n t a i n e d ? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o make an annual payment o f $20,,OO? Yes No b. I f no, would you be w i l l i n g t o make an annual payment o f $5.00? Yes No 3. Do you have any comments about u s i n g g e n e r a l t a x re v e n u e s r a t h e r than e n t r a n c e f e e s as a means o f p a y i n g f o r Museum s e r v i c e s ? 227 Economic V a l u e o f t h e B.C. P r o v i n c i a l Museum f . In t h i s s u r v e y , we enc o u r a g e you t o e x p r e s s y o u r views r e g a r d i n g t h e economic v a l u e o f t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a . The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by p e o p l e o f a l l ages. A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompany-i n g s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f th e P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e t h e e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l - r e s o u r c e h e r i t a g e . W h i l e t h e c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t s money, e n t r a n c e t o t h e P r o v i n c i a l Museum i s f r e e o f c h a r g e . I n s t e a d , a l l o f us now pay f o r t h e o p e r a t i o n o f t h e Museum i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r P r o v i n c i a l income t a x e s and s l i g h t l y i n c r e a s e d p r i c e s f o r some o f t h e goods which we buy. In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e w a n t i n g t o e s t i m a t e t h e amount you a r e w i l l i n g t o spend each y e a r i n o r d e r t o e n s u r e t h a t t h e p r e s e n t q u a l i t y o f Museum e x h i b i t s i s m a i n t a i n e d . When a n s w e r i n g t h e f o l l o w i n g q u e s t i o n s , assume t h a t payments w i l l c o n t i n u e t o be made as p a r t o f P r o v i n c i a l t a x ass e s s m e n t s and t h a t a l l a d u l t c i t i z e n s o f t h e P r o v i n c e w i l l be r e q u i r e d t o pay an equal amount. 1. In which o f t h e f o l l o w i n g a r e a s o f B.C. do you l i v e ? 2. What i s t h e maximum annual t a x payment t h a t you would be w i l l i n g t o make i n o r d e r t o e n s u r e t h a t t h e p r e s e n t q u a l i t y , o f Museum e x h i b i t s i s m a i n t a i n e d ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , M a i n l a n d B.C. $ 3. Do you have any comments about u s i n g g e n e r a l t a x revenues r a t h e r than e n t r a n c e f e e s as a means o f p a y i n g f o r Museum s e r v i c e s ? 228 Economic V a l u e o f the B.C., P r o v i n c i a l Museum 9-In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g the economic v a l u e o f t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a . The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by p e o p l e o f a l l ages. A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g . w i t h ; c h a r a c t e r i s t i c d i s p l a y s and accompany-i n g s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f th e P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e t h e e v o l u t i o n and d i v e r s i t y o f B.C. 1s n a t u r a l r e s o u r c e h e r i t a g e . W h i l e t h e c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t s money, e n t r a n c e t o the P r o v i n c i a l Museum i s f r e e o f c h a r g e . I n s t e a d , each B.C. t a x p a y e r now pays f o r the o p e r a t i o n o f the P r o v i n c i a l Museum i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r P r o v i n c i a l income t a x e s and s l i g h t l y i n c r e a s e d p r i c e s f o r some o f the goods which we buy. D e c r e a s i n g t h e q u a l i t y and range o f Museum e x h i b i t s c o u l d t h e r e f o r e r e s u l t i n s u b s t a n t i a l f i n a n c i a l s a v i n g s f o r t h e P r o v i n c i a l Government. In o r d e r t o r o u g h l y measure t h e economic v a l u e o f c u r r e n t Museum s e r v i c e s , we a r e wa n t i n g t o ge t an e s t i m a t e o f t h e amount o f monetary payment t h a t would j u s t compensate you i f t h e q u a l i t y o r range o f s e r v i c e s p r o v i d e d by t h e Museum were t o s u b s t a n t i a l l y d e c l i n e . When a n s w e r i n g t h e f o l l o w i n g q u e s t i o n s , assume t h a t a l l s a v i n g s w i l l be d i s t r i b u t e d t h r o u g h a d e c r e a s e i n annual P r o v i n c i a l t a x e s o r an e q u i v a l e n t c a s h payment and t h a t a l l a d u l t c i t i z e n s o f t h e P r o v i n c e w i l l be compensated an equal amount. 1. In which o f the f o l l o w i n g a r e a s o f B.C. do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , M a i n l a n d B.C. Would you be w i l l i n g t o a c c e p t an annual t a x r e d u c t i o n o f $5.00 i f . a s a r e s u l t f u n d i n g f o r t h e P r o v i n c i a l Museum would d e c r e a s e and t h e q u a l i t y o f Museum s e r v i c e s would d e c l i n e ? Yes No Now, answer e i t h e r a o r b. ' a. I f no, would you be w i l l i n g t o a c c e p t an annual t a x r e d u c t i o n o f $10.00? Yes No b. I f y e s , would you be w i l l i n g t o a c c e p t an annual t a x r e d u c t i o n o f $3.00? Yes No 3. Do ypu have any comments about t h e p o s s i b i l i t y o f r e c e i v i n g a t a x s a v i n g i n r e t u r n f o r a d e c l i n e i n t h e q u a l i t y o f - th e P r o v i n c i a l Museum? 229 Economic V a l u e o f t h e B.C. P r o v i n c i a l Museum h In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t h e economic v a l u e o f t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a . The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by p e o p l e o f a l l ages A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompany-i n g s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f th e P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e t h e e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l r e s o u r c e h e r i t a g e . W h i l e t h e c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t s money, e n t r a n c e t o the P r o v i n c i a l Museum i s f r e e o f c h a r g e . I n s t e a d , each B.C. t a x p a y e r now pays f o r t h e o p e r a t i o n o f t h e P r o v i n c i a l Museum i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r P r o v i n c i a l income t a x e s and s l i g h t l y i n c r e a s e d p r i c e s f o r some o f t h e goods which we buy. Permanently c l o s i n g t h e Museum t o a l l v i s i t o r s c o u l d t h e r e f o r e r e s u l t i n s u b s t a n t i a l f i n a n c i a l s a v i n g s f o r the P r o v i n c i a l Government. In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e w a n t i n g t o g e t an e s t i m a t e o f t h e amount o f monetary payment t h a t would j u s t compensate you f o r the c l o s u r e o f the Museum. When a n s w e r i n g t h e f o l l o w i n g q u e s t i o n s , assume t h a t a l l s a v i n g s w i l l be d i s t r i b u t e d t h r o u g h a d e c r e a s e i n annual P r o v i n c i a l t a x e s o r an e q u i v a l e n t c a s h payment and t h a t a l l a d u l t c i t i z e n s o f t h e P r o v i n c e w i l l be compensated an equal amount. 1. In which o f t h e f o l l o w i n g a r e a s o f B.C. do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , M a i n l a n d B.C. 2. Would you be w i l l i n g t o a c c e p t an annual t a x r e d u c t i o n o f $5.00 i f as a r e s u l t f u n d i n g f o r t h e P r o v i n c i a l Museum would c e a s e and t h e Museum would be c l o s e d t o a l l v i s i t o r s ? Yes No Now, answer e i t h e r a o r b. a. I f no, would you be w i l l i n g t o a c c e p t an annual t a x r e d u c t i o n o f $10.00? Yes No b. I f y e s , would you be w i l l i n g t o a c c e p t an annual t a x r e d u c t i o n o f $2.00? Yes No 3. Do you have any comments about t he p o s s i b i l i t y o f r e c e i v i n g a t a x s a v i n g i n r e t u r n f o r t h e c l o s u r e o f t h e P r o v i n c i a l Museum? 230 Economic V a l u e o f t h e B.C. P r o v i n c i a l Museum h In t h i s s u r v e y , we en c o u r a g e you t o e x p r e s s y o u r views r e g a r d i n g t h e economic v a l u e o f t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a . The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by p e o p l e o f a l l ages A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompany^ i n g s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f th e P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e t h e e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l r e s o u r c e h e r i t a g e . W h i l e t h e c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t s money, e n t r a n c e t o t h e P r o v i n c i a l Museum i s f r e e o f c h a r g e . I n s t e a d , each B.C. t a x p a y e r now pays f o r the o p e r a t i o n o f t h e P r o v i n c i a l Museum i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r P r o v i n c i a l income t a x e s and s l i g h t l y i n c r e a s e d p r i c e s f o r some o f t h e goods which we buy. Perm a n e n t l y c l o s i n g t h e Museum t o a l l v i s i t o r s c o u l d t h e r e f o r e r e s u l t i n s u b s t a n t i a l f i n a n c i a l s a v i n g s f o r t h e P r o v i n c i a l Government. In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e w a n t i n g t o g e t an e s t i m a t e o f t h e amount o f monetary payment t h a t would j u s t compensate you f o r t h e c l o s u r e o f t h e Museum. When a n s w e r i n g t he f o l l o w i n g q u e s t i o n s , assume t h a t a l l s a v i n g s w i l l be d i s t r i b u t e d t h r o u g h a d e c r e a s e i n annual P r o v i n c i a l t a x e s o r an e q u i v a l e n t c a s h payment and t h a t a l l a d u l t c i t i z e n s o f t h e P r o v i n c e w i l l be compensated an equ a l amount. 1. In which o f t h e f o l l o w i n g a r e a s o f B.C. do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , M a i n l a n d B.C. 2. Would you be w i l l i n g t o a c c e p t an annual t a x r e d u c t i o n o f $5.00 i f as a r e s u l t f u n d i n g f o r t h e P r o v i n c i a l Museum would c e a s e and t h e Museum would be c l o s e d t o a l l v i s i t o r s ? Yes No' Now, answer e i t h e r a o r b. a. I f no, would you be w i l l i n g t o a c c e p t an annual t a x r e d u c t i o n o f $25.00? Yes No b. I f y e s , would you be w i l l i n g t o a c c e p t an annual t a x r e d u c t i o n o f $2.00? Yes No 3. Do you have any comments about t h e p o s s i b i l i t y o f r e c e i v i n g a t a x s a v i n g i n r e t u r n f o r t h e c l o s u r e o f t h e P r o v i n c i a l Museum? 231 : Economic V a l u e o f t h e B.C. P r o v i n c i a l Museum In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t h e economic v a l u e o f t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a . What i s t h e P r o v i n c i a l Museum a l l about? The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by \"people o f a l l ages. A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompanying s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f t h e P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e t h e e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l r e s o u r c e h e r i t a g e . Why a r e we i n t e r e s t e d i n y o u r views? While a n o t h e r group o f s u r v e y s i s b e i n g c o n -d u c t e d a t t h e Museum i t s e l f , i t i s f e l t t h a t o t h e r r e s i d e n t s o f t h e P r o v i n c e - p e o p l e who may l i v e o u t s i d e V i c t o r i a o r who may n o t have e v e r v i s i t e d t h e Museum - may a l s o a t t a c h a v a l u e t o i t s o p e r a t i o n and c o n t i n u e d e x i s t e n c e . F o r example, some p e o p l e may have p l a n s t o v i s i t t h e Museum a t some time i n t h e f u t u r e . O t h e r p e o p l e may f e e l t h a t t h e Museum h e l p s t o r e c o r d t h e h i s t o r y and c u l t u r e o f B.C., and f o r t h e s e p e o p l e j u s t knowing t h a t t h e Museum e x i s t s may be o f v a l u e . While t h e c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t s money, e n t r a n c e t o t h e P r o v i n c i a l Museum i s f r e e o f c h a r g e . I n s t e a d , a l l o f us now pay f o r t h e o p e r a t i o n o f t h e Museum i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r P r o v i n c i a l income t a x e s and s l i g h t l y i n c r e a s e d p r i c e s f o r some o f t h e goods which we buy. In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e wa n t i n g t o g e t an e s t i m a t e o f th e amount you a r e w i l l i n g t o spend each y e a r i n o r d e r t o e n s u r e t h a t the p r e s e n t q u a l i t y o f Museum e x h i b i t s i s m a i n t a i n e d . T h i s payment w i l l e n s u r e t h a t Museum e x h i b i t s remain open t o v i s i t o r s and p r e s e r v e s y o u r o p p o r t u n i t y t o v i s i t t h e Museum a t some f u t u r e t i m e . When a n s w e r i n g t h e f o l l o w i n g q u e s t i o n s , assume t h a t payments w i l l c o n t i n u e t o be made as p a r t o f P r o v i n c i a l t a x ass e s s m e n t s and t h a t a l l a d u l t c i t i z e n s o f the P r o v i n c e w i l l be r e q u i r e d t o pay an equ a l amount. 1. Do you l i v e i n t h i s a r e a ? Yes No 2. I f no, i n which o f t h e f o l l o w i n g a r e a s do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver _ o t h e r , M a i n l a n d B.C. 3. Have you e v e r v i s i t e d t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a ? Yes No 4. Do you have any f u t u r e p l a n s t o v i s i t t h e Museum? Yes No 5. Would you be w i l l i n g t o make an annual t a x payment o f $3.00 i n o r d e r t o e n s u r e t h a t t h e p r e s e n t q u a l i t y o f Museum s e r v i c e s i s m a i n t a i n e d ? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o make an annual payment o f $5.00? b. I f no, would you be w i l l i n g t o make an annual payment o f $1.00? Yes Yes No No 232 Economic V a l u e o f t h e B.C. P r o v i n c i a l Museum r. . In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t h e economic v a l u e o f t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a . What i s t h e P r o v i n c i a l Museum a l l about? The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by p e o p l e o f a l l ages. A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompanying s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f t h e P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e t h e e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l r e s o u r c e h e r i t a g e . Why a r e we i n t e r e s t e d i n y o u r v i e w s ? W h i l e a n o t h e r group o f s u r v e y s i s b e i n g c o n -d u c t e d a t t h e Museum i t s e l f , i t i s f e l t t h a t o t h e r r e s i d e n t s o f t h e P r o v i n c e - p e o p l e who may l i v e o u t s i d e V i c t o r i a o r who may not have e v e r v i s i t e d t h e Museum - may a l s o a t t a c h a v a l u e t o i t s o p e r a t i o n and c o n t i n u e d e x i s t e n c e . F o r example, some p e o p l e may have p l a n s t o v i s i t t h e Museum a t some ti m e i n t h e f u t u r e . O t h e r p e o p l e may f e e l t h a t t h e Museum h e l p s t o r e c o r d t h e h i s t o r y and c u l t u r e o f B.C., and f o r t h e s e p e o p l e j u s t knowing t h a t t h e Museum e x i s t s may be o f v a l u e . While t h e c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t s money, e n t r a n c e t o t h e P r o v i n c i a l Museum i s f r e e o f c h a r g e . I n s t e a d , a l l o f us now pay f o r t h e o p e r a t i o n o f t h e Museum i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r P r o v i n c i a l income t a x e s and s l i g h t l y i n c r e a s e d p r i c e s f o r some o f the goods which we buy. In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e wa n t i n g t o get an e s t i m a t e o f the amount you a r e w i l l i n g t o spend each y e a r i n o r d e r t o e n s u r e t h a t the p r e s e n t q u a l i t y o f Museum e x h i b i t s i s m a i n t a i n e d . T h i s payment w i l l e n s u r e t h a t Museum e x h i b i t s remain open t o v i s i t o r s and p r e s e r v e s y o u r o p p o r t u n i t y t o v i s i t t h e Museum a t some f u t u r e t i m e . When a n s w e r i n g t h e f o l l o w i n g q u e s t i o n s , assume t h a t payments w i l l c o n t i n u e t o be made as p a r t o f P r o v i n c i a l t a x ass e s s m e n t s and t h a t a l l a d u l t c i t i z e n s o f t h e P r o v i n c e w i l l be r e q u i r e d t o pay an equ a l amount. ' 1. Do you l i v e i n t h i s a r e a ? Yes No 2. I f no, i n which o f t h e f o l l o w i n g a r e a s do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , M a i n l a n d B.C. 3. Have you e v e r v i s i t e d t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a ? Yes No 4. Do you have any f u t u r e p l a n s t o v i s i t t h e Museum? Yes No 5. Would you be w i l l i n g t o make an annual t a x payment o f $5.00 i n o r d e r t o e n s u r e t h a t t h e p r e s e n t q u a l i t y o f Museum s e r v i c e s i s m a i n t a i n e d ? Yes No : Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o make an annual payment o f $jO.OO? b. I f no, would you be w i l l i n g t o make an annual payment o f $3.00? Yes Yes No No 233 Economic V a l u e o f t h e B.C. P r o v i n c i a l Museum i In t h i s s u r v e y , we encourage you t o e x p r e s s y o u r views r e g a r d i n g t h e economic v a l u e o f t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a . What i s t h e P r o v i n c i a l Museum a l l a b o u t ? The Museum e x h i b i t s s e r v e a number o f f u n c t i o n s and a r e viewed by p e o p l e o f a l l ages. A wide range o f o b j e c t s made by t r a d i t i o n a l I n d i a n c u l t u r e s a r e d i s p l a y e d f o r p u b l i c v i e w i n g and p r e s e r v e d f o r r e s e a r c h p u r p o s e s . A r t i f a c t s o f e a r l y B.C. e x p l o r e r s , t r a d e r s , and l o g g e r s a r e e x h i b i t e d a l o n g w i t h c h a r a c t e r i s t i c d i s p l a y s and accompanying s t o r i e s o f more r e c e n t B.C. l i f e . R e p r e s e n t a t i v e animal and p l a n t s p e c i e s o f t h e P r o v i n c e a r e a l s o c o l l e c t e d and shown i n n a t u r a l s e t t i n g s t o i l l u s t r a t e t h e e v o l u t i o n and d i v e r s i t y o f B.C.'s n a t u r a l r e s o u r c e h e r i t a g e . Why a r e we i n t e r e s t e d i n y o u r views? While a n o t h e r group o f s u r v e y s i s b e i n g c o n -d u c t e d a t t h e Museum i t s e l f , i t i s f e l t t h a t o t h e r r e s i d e n t s o f the P r o v i n c e - p e o p l e who may l i v e o u t s i d e V i c t o r i a o r who may not have e v e r v i s i t e d t h e Museum - may a l s o a t t a c h a v a l u e t o i t s o p e r a t i o n and c o n t i n u e d e x i s t e n c e . F o r example, some p e o p l e may have p l a n s t o v i s i t t h e Museum a t some ti m e i n t h e f u t u r e . O t h e r p e o p l e may f e e l t h a t t h e Museum h e l p s t o r e c o r d t h e h i s t o r y and c u l t u r e o f B.C., and f o r t h e s e p e o p l e j u s t knowing t h a t t h e Museum e x i s t s may be o f v a l u e . W h i l e t h e c o l l e c t i o n , c l a s s i f i c a t i o n and e x h i b i t i o n o f t h e s e o b j e c t s c o s t s money, e n t r a n c e t o t h e P r o v i n c i a l Museum i s f r e e o f c h a r g e . I n s t e a d , a l l o f us now pay f o r t h e o p e r a t i o n o f t h e Museum i n a v a r i e t y o f ways, i n c l u d i n g h i g h e r P r o v i n c i a l income t a x e s and s l i g h t l y i n c r e a s e d p r i c e s f o r some o f t h e goods which we buy. In o r d e r t o r o u g h l y measure i t s economic v a l u e , we a r e wa n t i n g t o g e t an e s t i m a t e o f the amount you a r e w i l l i n g t o spend each y e a r i n o r d e r t o e n s u r e t h a t t h e p r e s e n t q u a l i t y o f Museum e x h i b i t s i s m a i n t a i n e d . T h i s payment w i l l e n s u r e t h a t Museum e x h i b i t s remain open t o v i s i t o r s and p r e s e r v e s y o u r o p p o r t u n i t y t o v i s i t t h e Museum a t some f u t u r e t i m e . When a n s w e r i n g t h e f o l l o w i n g q u e s t i o n s , assume t h a t payments w i l l c o n t i n u e t o be made as p a r t o f P r o v i n c i a l t a x a s s e s s m e n t s and t h a t a l l a d u l t c i t i z e n s o f t h e P r o v i n c e w i l l be r e q u i r e d t o pay an equal amount. 1. Do you l i v e i n t h i s a r e a ? Yes No 2. I f no, i n which o f t h e f o l l o w i n g a r e a s do you l i v e ? V i c t o r i a o t h e r , Vancouver I s l a n d Vancouver o t h e r , M a i n l a n d B.C. 3. Have you e v e r v i s i t e d t h e B.C. P r o v i n c i a l Museum i n V i c t o r i a ? Yes No 4. Do you have any f u t u r e p l a n s t o v i s i t t h e Museum? Yes No 5. Would you be w i l l i n g t o make an annual t a x payment o f $ 1 0 . 0 0 i n o r d e r t o e n s u r e t h a t t h e p r e s e n t q u a l i t y o f Museum s e r v i c e s i s m a i n t a i n e d ? Yes No Now, answer e i t h e r a o r b. a. I f y e s , would you be w i l l i n g t o make an annual payment of/$2Q s00? b. I f no, would you be w i l l i n g t o make an annual payment o f $5.00? Yes Yes No No 234 Economic Value of the B.C. Provincial Museum j . In this survey, we encourage you to express your views regarding the economic value of the B.C. Provincial Museum in Victoria. What is the Provincial Museum all about? The Museum exhibits serve a number of functions and are viewed by people of all ages. A wide range of objects made by traditional Indian cultures are displayed for public viewing and preserved for research purposes. Artifacts of early B.C. explorers, traders and loggers are exhibited along with characteristic displays and accompanying stories of more recent B.C. l i f e . Representative animal and plant species of the Province are also collected and shown in natural settings to illustrate the evolution and diversity of B.C.'s natural resource heritage. Why are we interested in your views? While another group of surveys is being conducted at the Museum itself, i t is felt that other residents of the Province - people who may live outside Victoria or who may not have ever visited the Museum - may also attach a value to its operation and continued existence. For example, some people may have plans to visit the Museum at some time in the future. Other people may feel that the Museum helps to record the history and culture of B.C., and for these people just knowing that the Museum exists may be of value; While the collection, classification and exhibition of these objects costs money, entrance to the Provincial Museum is free of charge. Instead, all of us now pay for the operation of the Museum in a variety of ways, including higher Provincial income taxes and slightly increased prices for some of the goods which we buy. In order to roughly measure its economic value, we are wanting to get an estimate of the amount you are willing to spend each year in order to ensure that the present quality of Museum exhibits is maintained. This payment will ensure that Museum exhibits remain open to visitors and preserves your opportunity to visit the Museum at some future time. When answering the following questions, assume that payments will continue to be made as part of Provincial tax assessments and that all adult citizens of the Province will be required to pay an equal amount. 1. Do you live in this area? Yes No 2. If no, in which of the following areas do you live? Victoria other, Vancouver Island Vancouver ' - other, Mainland B.C. 3. Have you ever visited the B.C. Provincial Museum in Victoria? Yes No 4. Do you have future plans to visit the Museum? Yes No 5. What is the maximum annual payment that you would be willing to make in order to ensure that the present quality of Museum exhibits is maintained? $ 6. Do you have any comments about using general tax revenues rather than entrance fees as a means of paying for Museum services? "@en . "Thesis/Dissertation"@en . "1982-11"@en . "10.14288/1.0076875"@en . "eng"@en . "Interdisciplinary Studies"@en . "Vancouver : University of British Columbia Library"@en . "University of British Columbia"@en . "For non-commercial purposes only, such as research, private study and education. Additional conditions apply, see Terms of Use https://open.library.ubc.ca/terms_of_use."@en . "Graduate"@en . "Valuing non-market goods : an analysis of alternative approaches"@en . "Text"@en . "http://hdl.handle.net/2429/23457"@en .