Criterion and predictive validity of revealed and stated preference data: the case of “Mountain Home Music” concert demand

John C. Whitehead, Douglas Simpson Noonan, Elizabeth Marquardt

Abstract


Despite a robust literature on nonmarket valuation of cultural assets, serious validity concerns remain.  We address this by estimating a demand model for a regional concert series.  We survey concertgoers during and then again after the concert season to gather ex ante and ex post stated and revealed preference data. Comparing ex ante stated preference data to ex post revealed preference data we find respondents overstate their concert attendance behavior. An ex ante revealed-stated preference demand model with a stated preference adjustment helps calibrate the results and avoid bias from using solely hypothetical, stated preference data. The results demonstrate how to improve predictive accuracy in contingent behavior models and improve our understanding of demand for live music performances.  


Full Text:

PDF

References


Alberini, Anna and Alberto Longo. (2006) “Combining the travel cost and contingent behavior methods to value cultural heritage sites: Evidence from Armenia.” Journal of Cultural Economics 30(4): 287-304.

Bedate, Ana, Luis César Herrero and José Ángel Sanz. (2004) “Economic valuation of the cultural heritage: application to four case studies in Spain.” Journal of Cultural Heritage 5: 101-111.

Boter, Jaap, Jan Rouwendal, and Michel Wedel. (2005) “Employing Travel Time to Compare the Value of Competing Cultural Organizations.” Journal of Cultural Economics 29(1): 19-33.

Dickie, Mark, Ann Fisher and Shelby Gerking. (1987) “Market Transactions and Hypothetical Demand Data: A Comparative Study.” Journal of the American Statistical Association 82(397): 69-75.

Englin, Jeffrey and Trudy Ann Cameron. (1996) “Augmenting Travel Cost Models with Contingent Behavior Data.” Environmental and Resource Economics 7(2):133-147.

Fonseca, Susana and Joao Rebelo (2010). “Economic Valuation of Cultural Heritage: Application to a Museum Located in the Alto Douro Wine Region– World Heritage Site.” Pasos 8(2): 339-350.

Forrest, David, Keith Grimes and Robert Woods. (2000) “Is It Worth Subsidizing Regional Repertory Theatre?” Oxford Economic Papers 52: 381-397.

Grijalva, T., Berrens, R., Bohara, A., and Shaw, D. (2002) “Testing the Validity of Contingent Behavior Trip Responses.” American Journal of Agricultural Economics. 84 (2): 401-414.

Hausman, Jerry. (2012) “Contingent Valuation: From Dubious to Hopeless.” Journal of Economic Perspectives 26(4): 43-56.

List, J. A. and C. Gallet. (2001) “What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values?” Environmental and Resource Economics 20(3): 241-254.

Loomis, John B., “An Investigation into the Reliability of Intended Visitation Data,” Environmental and Resource Economics 3:183-191, 1993.

Martin, F. (1994) “Determining the size of museum subsidies.” Journal of Cultural Economics 18(4): 255–270.

Melstrom, Richard T. (2013) “Valuing historic battlefields: an application of the travel cost method to three American Civil War battlefields.” Journal of Cultural Economics forthcoming. DOI: 10.1007/s10824-013-9209-7.

Murphy, James J., P. Geoffrey Allen, Thomas H. Stevens and Darryl Weatherhead. (2005) “A Meta-analysis of Hypothetical Bias in Stated Preference Valuation.” Environmental and Resource Economics 30(3): 313-325.

Noonan, Douglas S. (2003) “Contingent Valuation and Cultural Resources: A Meta-Analytic Review of the Literature.” Journal of Cultural Economics 27(3-4): 159-176.

Plaza, Beatriz. (2010) “Valuing museums as economic engines: Willingness to pay or discounting of cash-flows?” Journal of Cultural Heritage 11: 155-162.

Poor, P. J. and J. M. Smith. (2004) “Travel cost analysis of a cultural heritage site: The case of historic St. Mary’s City of Maryland.” Journal of Cultural Economics 28: 217–229.

Vicente, Eva and Pablo de Frutos. (2011) “Application of the travel cost method to estimate the economic value of cultural goods: Blockbuster art exhibitions.” Revista de Economia Pública 196(1): 37-63

Whitehead, John C. (2005) “Environmental Risk and Averting Behavior: Predictive Validity of Jointly Estimated Revealed and Stated Behavior Data.” Environmental and Resource Economics. 32: 301-316.

Whitehead, John C., Christopher F. Dumas, Jim Herstine, Jeffery Hill and Bob Buerger. (2008a) “Valuing Beach Access and Width with Revealed and Stated Preference Data.” Marine Resource Economics 23: 119-135.

Whitehead, J., Pattanayak, S., Van Houtven, G., and Gelso, S. (2008b) “Combining Revealed and stated Preference Data to Estimate the Nonmarket Value of Ecological Services: An Assessment of the State of the Science.” Journal of Economic Surveys. 22 (5): 872-908.

Willis, K. G., J. D. Snowball, C. Wymer and José Grisolía. (2012) “A count data travel cost model of theatre demand using aggregate theatre booking data.” Journal of Cultural Economics 36: 91-112.




DOI: https://doi.org/10.17811/ebl.3.2.2014.87-95

Refbacks

  • There are currently no refbacks.


ISSN: 2254-4380