• Journal of the Chungcheong Mathematical Society
• /
• v.28 no.1
• /
• pp.89-95
• /
• 2015

In this paper we investigate the pricing of European contingent claims under regime switching. We use the Mellin transform to derive an analytic form of the valuation of contingent claims.

• Journal of Korea Technology Innovation Society
• /
• v.3 no.1
• /
• pp.113-126
• /
• 2000

The purpose of this paper is to introduce and test an extension of dichotomous choice contingent valuation(DC-CV) methods of pre-test-market evaluation using the specific case of a cable telev-ision service. Specifically we used a double-bounded DC-CV approach. On the whole respondents accepted the contingent market and were willing to contribute a significant amount on average. This willingness varies according to individual characteristics and concerns about the service. It is concluded that the methods are potentially a useful tool for decision-makers in measuring the po-tential demand for a new cable television service and considering the provision of the service.

• Journal of Korean Society of Water and Wastewater
• /
• v.28 no.5
• /
• pp.561-571
• /
• 2014

The paper is to estimate willingness-to-pay (WTP) for tap water quality improvement in Busan, using parametric approach in contingent valuation method(CVM). For parametric approach linear logit model and log logit model are employed in double-bounded dichotomous choice format of CVM. For the reliability and the validity of contingent valuation method a survey was conducted for 665 respondents, who were sampled by stratified random sampling method, by personal interview method. The result of mean WTP for the tap water quality improvement in Busan was estimated to be 3,687 won and 3,660 won per month per household, while median WTP being 1,884 won and 1,892 won per month per household, respectively by linear logit model and log logit model. Provided that our sample is broadly representative of the Busan's population, an estimate of the annual aggregated benefit of residential water improvement for all Busan households is approximately 29.7 billion won to 29.8 billion won based on median WTP.

• Journal of the HCI Society of Korea
• /
• v.11 no.1
• /
• pp.11-19
• /
• 2016

This study aimed to assess the economic value of the UX design and applied contingent valuation method (CVM) to the three smartphone screen unlock interface types: touch, fingerprint, and iris recognition. The contingent valuation method was chosen from various economic valuation approaches because the interface components such as the screen unlock are important user experience values but non-market goods which are not traded independently. Using the double-bounded dichotomous choice approach of the contingent valuation method, the survey results of the logit model showed that the economic value of touch unlock interface was 529 won, fingerprint was 4,214 won, and iris recognition was 1,316 won. That is, the fingerprint interface had the highest economic value, followed by iris recognition and touch interface. The main contribution of this research is that we examined a method for economic valuation of the UX design and generated systematic and credible results.

• Environmental Engineering Research
• /
• v.13 no.1
• /
• pp.41-48
• /
• 2008

The valuation of biodiversity is a fundamental step in conservation. The useful framework for analysing the economic value of biological resources is that of total economic value (TEV) and TEV comprises both use and non-use values, the former related to an actual use made of the resource, the latter to a willingness to pay for the resource independently of any use made of it. There are several valuation approacher in environmental economics literature. However, stated preference approach should be introduced for valuation of biodiversity because it can estimate non-use value as well as use value. Contingent Valuation and Conjoint Analysis are representative methods in stated preference and Conjoint Analysis can be more useful for valuation of biodiversity. Futhermore, the combination of ecology and economics to assess biodiversity leads to an integrated framework. Thus, interdisciplinary work is required, involving both economists and ecologists transferring elements or even theories and models from one discipline to another and transforming them for their specific, mutually consistent purpose.

• Environmental and Resource Economics Review
• /
• v.11 no.1
• /
• pp.99-119
• /
• 2002

As an alternative to classical maximum likelihood approach for analyzing dichotomous choice contingent valuation (DCCV) data, this paper develops a Bayesian approach. By using the idea of Gibbs sampling and data augmentation, the approach enables one to perform exact inference for DCCV models. A by-product from the approach is welfare measure, such as the mean willingness to pay, and its confidence interval, which can be used for policy analysis. The efficacy of the approach relative to the classical approach is discussed in the context of empirical DCCV studies. It is concluded that there appears to be considerable scope for the use of the Bayesian analysis in dealing with DCCV data.

• Journal of the Korean Society for information Management
• /
• v.24 no.1 s.63
• /
• pp.187-208
• /
• 2007

This study aims to present a new approach to measure the economic value of the public libraries, identifying and suggesting the modified contingent valuation method (CVM) application. The modified CVM, which applied Dissonance Minimizing (DM) format, is presented as a new approach. A cost-benefit analysis is used as a tool to determine if the benefits of public libraries outweigh the cost incurred in providing the services. The benefits of public libraries are based on estimates of how much the user is willing to pay for the library services and costs are based on the prices of providing the services. A comparison between two methods are conducted in a case study in order to measure the economic value of 'J Public Library'. The study also conducts a case study to analyse the WTP value of the 'J Public Library' and demonstrates how public libraries approach the their local studies.

• Asia-Pacific Journal of Business
• /
• v.14 no.3
• /
• pp.251-269
• /
• 2023

Purpose - This study estimated the value of tourists' willingness to pay (WTP) to develop and promote regional tourism and minimize external effects using the contingent valuation method (CVM). Design/methodology/approach - To reduce exaggeration bias, a major issue of CVM, a pilot survey was conducted to categorize bid value. Additionally, the payment method was divided into a tourism fund and tourism taxes, and the respondents' answers were reaffirmed in two stages. Findings - As a result of the analysis, the tourists' WTP was estimated to be 5,132 KRW (3.60 USD) for the tourism fund and 1,036 KRW (0.73 USD) for tourism taxes. Research implications or Originality - The results of this study provide implications for securing financial resources and establishing policies in Gangwon province, which promotes special self-governing.

• Journal of Distribution Science
• /
• v.20 no.10
• /
• pp.19-29
• /
• 2022

Purpose: This study was conducted to gauge the economic evaluation and sample distribution of conserving the Belum Royal State Park (BRSP) in Perak, Malaysia and to identify factors influencing its use by the community. This study aims to examine community perception on the conservation of the Belum Royal State Park (BRSP) and maximum community's willingness to pay for park entry permits fees. Research design, data and methodology: A questionnaire survey was conducted involving a total of 280 respondents. The study adopted the Dichotomous Choice Contingent Valuation Approach (DC-CVM) and the Logistic Model, to estimate the maximum community's willingness to pay for park entry permits fees. Results: The results established that the factors of respondent's occupation, income, ecotourism influence on the BRSP and maximum entry price, significantly influenced visitors' decision on community's willingness to pay. The average community's willingness to pay was RM9.68 per person. Conclusions: In conclusion, surveillance and patrols in protected areas should be expanded. The extra expense for ensuring safety can be offset through income from ecotourism that should also benefit the local community on economic evaluation and equal distribution on the BRSP.

• Environmental and Resource Economics Review
• /
• v.28 no.4
• /
• pp.645-673
• /
• 2019

The hypothetical nature of stated preferences can lead to a hypothetical bias that might work as a normative pressure, influencing survey responses. This paper aims to test the impact of social desirability bias by comparing economic estimates based on both subjective and objective valuation questions. The case study is about an urban riverine restoration project in Deajeon, South Korea. As valuation methods both contingent valuation and choice experiments were comparatively applied. Based on a nationally representative sample of 1,000 respondents, the test results offered contrasting conclusions between two test approaches. Accroding to the estimation results based on the conventional valuation, the marginal willingness to pay estimates are 10,500 KRW from CV; and 18,600 KRW for improving water quality, 2,200 KRW for the inside view, 8,900 KRW for the outside view, and 5,800 KRW for biodiversity from CE. A segmentation-based approach is a conventionally used method, which showed a limited impact of social desirability on willingness to pay estimates. The alternative parameterization-based approach measures a model-wide impact of social desirability, proving a significant bias. Although the study positioned a cheap-talk statement before the valuation section of the survey questionnaires, which might have pre-screened the bias, the overall implications of the results suggest a caution in reducing and observing hypothetical bias. There might remain a significant and substantial hypothetical bias even after cheap-talk, particularly in situations with strong social desirability, so that the potential role of objective valuation questions is guaranteed.