Suppose you conduct a contingent valuation survey based on the question If a program to avoid future
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Question:
- Suppose you conduct a contingent valuation survey based on the question “If a program to avoid future oil spills in the Gulf of Mexico would cost X dollars, would you support it?”. You have 4 versions of the questionnaire with different values of the program’s cost X: 5, 10, 15, 20. You obtain the following percentages of individuals who answer “yes” to the question.
Survey | Cost of program (X) | Percentage Yes |
A | 5 | 80 |
B | 10 | 65 |
C | 15 | 30 |
D | 20 | 20 |
Assuming that your survey sample is representative of 100 million households, calculate the total willingness to pay (in million dollars) for the program using the method presented in class.
Related Book For
Understanding Business Ethics
ISBN: 9781506303239
3rd Edition
Authors: Peter A. Stanwick, Sarah D. Stanwick
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