The importance of social learning for non-market valuation

B-Tier
Journal: Ecological Economics
Year: 2019
Volume: 164
Issue: C
Pages: -

Authors (2)

Grainger, Daniel (not in RePEc) Stoeckl, Natalie (University of Tasmania)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

Neoclassical valuation methods often measure the contribution that non-market goods make to utility as income compensations. This circumvents Arrow's impossibility (AI) –a theoretical proof establishing the impossibility of social preferences – but those methods cannot be used in all settings. We build on Arrow's original proof, showing that with two additional axioms that allow for social learning, a second round of preference elicitation with a social announcement after the first, generates logically consistent social preferences. In short: deliberation leads to convergence. A ‘web-game’ aligning with this is trialed to select real world projects, in a deliberative way, with the board of an Australian Aboriginal Corporation. Analysis of the data collected in the trial validates our theory; our test for convergence is statistically significant at the 1% level. Our results also suggest complex social goods are relatively undervalued without deliberation. Most non-market valuation methods could be easily adapted to facilitate social learning.

Technical Details

RePEc Handle
repec:eee:ecolec:v:164:y:2019:i:c:36
Journal Field
Environment
Author Count
2
Added to Database
2026-01-29