The use of multiple actual referenda in a new payment card methodology

We present the case for the adoption of a new payment card (PC) methodology, which we call multiple referenda payment card, in contingent valuation (CV) surveys. Our new multiple referenda payment card method uses actual referenda, which appeared on a recent ballot that preceded the survey’s distribution. The cost of these actual referenda to taxpayers is used as the range of cost bids in a usual payment card format for a new advisory environmental public good, the restoration of wetlands. The result is a more realistic framework for respondents to consider our advisory referendum. We compare our new multiple referenda payment card method to a dichotomous choice referenda and show that the new payment card method reduces hypothetical bias such as “yea-saying,” aids in selection of reasonable and realistic cost bids, as well as eliminates the “fat tails” problem.