Effects of total cost and group-size information on willingness to pay responses: Open ended vs dichotomous choice

This contingent Valuation (CV) study investigates the potential of cost-influenced re sponses in open-ended (OE) and dichotomous choice (DC) formats. For both formats we cross split-sample information treatments to provide: a total cost of the project treatment, a group-size treatment, a combined treatment, and the baseline control group. Investigations are undertaken using a CV survey for a particular environmental good (the "field"), and in an induced value experimental laboratory setting with real payoffs and a context-free, publicly provided good (the "lab"). Results show that DC values are not affected by cost and/or group-size information while the OE Values are (negatively) affected. (C) 1998 Academic Press.