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Valuing the Cultural Monuments of Armenia: Bayesian Updating of Prior Beliefs in Contingent Valuation

Author

Listed:
  • Anna Alberini

    (AREC, University of Maryland)

  • Alberto Longo

    (Queen's University Belfast)

Abstract
We use contingent valuation to place a value on the conservation of built cultural heritage sites in Armenia. When we present the hypothetical scenario in the questionnaire we spell out what would happen to the monuments in the absence of the government conservation program. We posit that respondents combine such information with their own prior beliefs, which the questionnaire also elicits, and that the WTP for the good or program is likely to be affected by these updated beliefs. We propose a Bayesian updating model of prior beliefs, and empirically implement it using the data from our survey. We find that uncertainty about what would happen to the monument in the absence of the program results in lower WTP amounts.

Suggested Citation

  • Anna Alberini & Alberto Longo, 2007. "Valuing the Cultural Monuments of Armenia: Bayesian Updating of Prior Beliefs in Contingent Valuation," Working Papers 2007.36, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2007.36
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    References listed on IDEAS

    as
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    7. Ståle Navrud & Richard C. Ready (ed.), 2002. "Valuing Cultural Heritage," Books, Edward Elgar Publishing, number 1759.
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    14. Anna Alberini & Alberto Longo, 2006. "Combining the travel cost and contingent behavior methods to value cultural heritage sites: Evidence from Armenia," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 30(4), pages 287-304, December.
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    Cited by:

    1. Andrea Leiter & Gerald Pruckner, 2009. "Proportionality of Willingness to Pay to Small Changes in Risk: The Impact of Attitudinal Factors in Scope Tests," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(2), pages 169-186, February.

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    More about this item

    Keywords

    Valuation of Cultural Heritage Sites; Non-Market Valuation; Contingent Valuation; Bayesian Updating; Prior Beliefs;
    All these keywords.

    JEL classification:

    • Z10 - Other Special Topics - - Cultural Economics - - - General

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