Implications of behavioral regularities for contingent valuation-

1. Anchoring--Any suggested starting bid influences the bid.

2. Thresholds--Would you pay 5 cents more for a fishing permit to get safety information?

3. Asymmetric value function--willingness to pay or sell.

4. Availability--effect of reminding people of opportunity costs.

5. Mental accounts--frames affect the reference account.

So which behavior from what frame is the true one? ALL ARE EQUALLY TRUE!

Are there choices independent of frames? Independent of the flow of reinforcers?

If these points hold for eliciting contingent valuation responses, they hold for all consumer choices. How do institutions affect frames in general?

\Journal File\cont-val.htm A. Allan Schmid Aug.8, 2000