Starting point bias in contingent valuation bidding games

A starting-point bias in bidding games is examined. Three recent willingness-to-pay studies are used: 1. estimation of the value boaters and canoeists place on maintaining scenic beauty along a section of the Wisconsin River by contingent valuation (CV), 2. estimation of the value that hunters place on a special deer hunt at the Sandhill Wildlife Demonstration Area in Wisconsin by CV and a simulated market, and 3. data from a recent CV study on valuing marine recreation by Thompson and Roberts (1983). Simple consumer choice framework is used to model starting-point bias. Starting-point bias was found to exist in the 3 CV applications of the bidding game, but was not a difficulty in the simulated market application. It is, therefore, possible to influence a respondent's final bid over a substantial range by the selection of the initial bid.