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A generalised test for vagueness in hypothetical markets


, : A generalised test for vagueness in hypothetical markets. Journal of Forest Economics 6(2): 109-130

Recent studies have suggested various ways of identifying and measuring possible vagueness in environment related willingness-to-pay (WTP) studies. In this paper, a model of discrete choice valuation is developed to study possible vagueness in target specificity in hypothetical markets. A general test is formulated for testing the hypothesis that different forces affect "yes" and "no" answers. It is shown how this test generalizes the double bounded and ordered probit models.

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