Reducing gain-loss asymmetry: A virtual reality choice experiment valuing land use change

A-Tier
Journal: Journal of Environmental Economics and Management
Year: 2009
Volume: 58
Issue: 1
Pages: 106-118

Authors (4)

Bateman, Ian J. (University of Exeter) Day, Brett H. (not in RePEc) Jones, Andrew P. (not in RePEc) Jude, Simon (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In the majority of choice experiments (CEs) the attributes of non-market goods are conveyed to respondents as a table of numeric and/or categorical data. Recent research suggests that respondents may have difficulties evaluating data in this format. In the context of a CE eliciting preferences for changes in coastal land use, this study uses a split-sample experiment to compare standard presentations with virtual reality (VR) visualisations conveying objectively identical information. We find that compared to the standard presentation, preferences elicited in VR treatments are less variable and exhibit a significant reduction in asymmetry between willingness to pay (WTP) for gains and willingness to accept (WTA) for corresponding losses. We conjecture that the greater 'evaluability' of the VR presentation reduces respondent judgement error and moderates reliance on the loss-aversion heuristic.

Technical Details

RePEc Handle
repec:eee:jeeman:v:58:y:2009:i:1:p:106-118
Journal Field
Environment
Author Count
4
Added to Database
2026-01-24