Do Respondents Report Willingness-to-Pay on a per Person or per Group Basis? A High Mountain Recreation Example

Abstract

Contingent valuation methodology (CVM) studies often use dichotomous choice willingness-to-pay (WTP) questions to measure the value that visitors place on recreation. This study assesses whether individuals respond to WTP questions on an individual or a group basis and whether reported WTP values are affected by changes in wording to address this issue explicitly. The authors' analysis reveals statistically significant differences in mean WTP when the payment vehicle is worded more generally, compared to specific language questioning respondents about increases in their share of the cost. Further, dividing the WTP from the standard CVM survey language by group size did not restore the equality of individual average WTP. These results indicate that payment vehicle language in recreation studies should go to great lengths to ask explicitly for either individual or group WTP, to ensure that accurate WTP estimates are obtained.