This study elicits individual risk preferences in the context of an infectious disease using choice experiments. A main objective is to examine scope sensitivity using a novel approach. Our results suggest that the value of a mortality risk reduction (VSL) is highly sensitive to the survey design. Our results cast doubt on the standard scope sensitivity tests in choice experiments, but also on the validity and reliability of VSL estimates based on stated-preference studies in general. This is important due to the large empirical literature on non-market evaluation and the elicited values’ central role in policy making.
Choice experiments; Morbidity risk; Mortality risk; Scope sensitivity; Willingness to pay;
- D61: Allocative Efficiency • Cost–Benefit Analysis
- H41: Public Goods
- I18: Government Policy • Regulation • Public Health
- Q51: Valuation of Environmental Effects
Henrik Andersson, Arne Risa Hole, and Mikael Svensson, “Valuation of small and multiple health risks: A critical analysis of SP data applied to food and water safety”, TSE Working Paper, n. 13-465, December 2013.
Henrik Andersson, Arne Risa Hole, and Mikael Svensson, “Valuation of small and multiple health risks: A critical analysis of SP data applied to food and water safety”, Journal of Environmental Economics and Management, vol. 75, January 2016, pp. 41–53.