value elicitation

Why elicit values? The prices observed on a market reflect, on a good competitive day, the equilibrium of marginal valuations and costs. They do not quantitatively reflect the infra-marginal or extra-marginal values, other than in a severely censored sense. We know that infra-marginal values are weakly higher, and extra-marginal values are weakly lower, but beyond that one must rely on functional forms to extrapolate. For policy purposes this is generally insufficient to undertake cost-benefit calculations. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.