Double bounded dichotomous choice is a contingent valuation elicitation method which involves two iterated binary questions. Past research has compared both responses within the framework of a joint bivariate distribution. In this paper we propose a Bayesian test which allows us to prove the hypothesis of unitary correlation coefficient. The application of the test is conducted on empirical dat...

a r t i c l e i n f o Absent or weak income effects reported in many contingent valuation studies have cast doubt on the reliability of the survey method. We find that the income effect depends on the type of public good in question: there is a negative income effect for willingness to pay for recycling, which requires time and effort for sorting, but a positive effect for the more convenient i...