| Title: | The
Scope Test Revisited * |
| Number: | 04-20 |
| Author: | Shomu Banerjee and James H. Murphy |
| Issue Date: | November 2004 |
| Abstract: |
Sensitivity to scope has become an acid test for the
validity of responses to non-market valuation scenarios. We examine the
theoretical relationship between whether a subject’s responses exhibit
sensitivity to scope and whether consistent preferences underlie those
responses. We find that sensitivity to scope is neither necessary nor
sufficient for preference consistency. Moreover, while continuous,
strongly monotonic and total preferences yield scope, the converse
fails to hold. Our results suggest caution in scope’s application as a
survey validation tool.
|
* Applied Economics Letters, forthcoming
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