A Generalised Test for Vagueness in Hypothetical Markets

A model of discrete choice valuation is developed to study possible vagueness in target specificity in hypothetical markets. A general test is formulated for testing the hypothesis that different forces affect “yes” and “no” answers. It is shown how this test generalises the double bounded and ordered probit models. It is also shown how willingness to pay can be modelled as a bivariate system. We also show how differences in target specificity affect the results of the survey.