Random error in willingness to pay measurement: A multiple indicators, latent variable approach to the reliability of contingent values

The reliability of measurement refers to unsystematic error in observed responses. Investigations of the prevalence of random error in stated estimates of willingness to pay (WTP) are important to an understanding of why tests of validity in CV can fail. However, published reliability studies have tended to adopt empirical methods that have practical and conceptual limitations when applied to WTP responses. This contention is supported in a review of contingent valuation reliability studies that demonstrate important limitations of existing approaches to WTP reliability. It is argued that empirical assessments of the reliability of contingent values may be better dealt with by using multiple indicators to measure the latent WTP distribution. This latent variable approach is demonstrated with data obtained from a WTP study for stormwater pollution abatement. Attitude variables were employed as a way of assessing the reliability of open-ended WTP (with benchmarked payment cards) for stormwater pollution abatement. The results indicated that participants' decisions to pay were reliably measured, but not the magnitude of the WTP bids. This finding highlights the need to better discern what is actually being measured in VVTP studies, (C) 2003 Elsevier B.V. All rights reserved.

Magnetic susceptibility measurement applied to the minerals industry

The efficiency of numerous mineral processing operations can be determined by measuring the magnetic properties of the process streams. This measurement, if done at all, is currently performed by laboratory testing of spot samples. This is an inherently slow process and, where feed grades are variable, optimum performance is generally not achieved. This paper describes the rapid measurement of the magnetic properties of minerals. AC measurement techniques, including the analysis of the phase component of the magnetic vector; frequency dependent magnetic susceptibility and the effect of applied magnetic field strength will be discussed. Industrial applications in mineral sands, copper smelting, ferrosilicon testing and drill core scanning will be reported. (C) 2006 Elsevier Ltd. All rights reserved.