Preference Uncertainty in Non-Market Valuation: A Fuzzy Approach |
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| Authors: | G Cornelis van Kooten Emina Krcmar & Erwin H Bulte |
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| Institution: | Department of Applied Economics and Statistics, University of Nevada, Reno;Wageningen University, The Netherlands;and FEPA Research Unit, University of British Columbia, Canada,;FEPA Research Unit, University of British Columbia, Canada,;Department of Economics, University of Tilburg, The Netherlands |
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| Abstract: | In this article, we consider uncertain preferences for non-market goods, but we move away from a probabilistic representation of uncertainty and propose the use of fuzzy contingent valuation. We assume that a decision maker never fully knows her own utility function and we treat utility as a fuzzy number. The methodology is illustrated using data on forest valuation in Sweden. Fuzzy contingent valuation provides estimates of resource value in the form of a fuzzy number and includes estimates obtained using a standard probabilistic approach. |
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| Keywords: | forest preservation fuzzy contingent valuation preference uncertainty |
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