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| Contingent Valuation Method× | Choice Experiment Valuation× | |
|---|---|---|
| Field | Economics | Economics |
| Family | Process / pipeline | Process / pipeline |
| Year of origin≠ | 1963 | 1974 |
| Originator≠ | Robert K. Davis (early use); methodology codified by the NOAA panel | Random utility theory (McFadden); applied to valuation by Louviere & Hensher |
| Type≠ | Survey-based stated-preference valuation method | Attribute-based stated-preference valuation method |
| Seminal source≠ | Hanemann, W. M. (1994). Valuing the environment through contingent valuation. Journal of Economic Perspectives, 8(4), 19–43. DOI ↗ | McFadden, D. (1974). Conditional logit analysis of qualitative choice behavior. In P. Zarembka (Ed.), Frontiers in Econometrics (pp. 105–142). New York: Academic Press. ISBN: 9780127761503 |
| Aliases | CVM, Stated-Preference Valuation, Willingness-to-Pay Survey, Survey-Based Non-Market Valuation | Discrete Choice Experiment, DCE, Choice-Based Conjoint Valuation, Stated Choice Experiment |
| Related | 2 | 2 |
| Summary≠ | The contingent valuation method (CVM) is a survey-based stated-preference technique for estimating the economic value people place on goods that are not traded in markets — clean air, an endangered species, a wilderness area, the existence of a natural resource. Respondents are presented with a carefully constructed hypothetical scenario and asked how much they would be willing to pay for a described change in provision; their answers are used to estimate mean or median willingness to pay, including non-use (existence) values that no market reveals. | A choice experiment (discrete choice experiment, DCE) is an attribute-based stated-preference method that values non-market goods by describing them as bundles of characteristics and asking respondents to choose repeatedly among competing alternatives — one of which always carries a cost. Grounded in random utility theory, the choices are modeled with a discrete-choice model whose coefficients reveal the relative value of each attribute, and dividing any attribute's coefficient by the cost coefficient yields its marginal willingness to pay. |
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