The use of "contingent valuation method" for valuing medical services

Abstract

It is desirable to know how one can value goods that are not traded in a market, so there is no market price to indicate the economic value of the good. One way is to ask the users or potential users about the monetary value they would place on a particular public good. This method is called the 'contingent valuation method.' However, a number of questions have been raised about the validity and reliability of the results obtained through this method. This study tests the reliability of the contingent valuation method in valuing medical services by focusing on a cheap-talk design, which is thought to improve the reliability of responses given in a hypothetical contingent valuation study.