Abstract
We use contingent valuation to estimate hunter and trapper willingness to pay (WTP) for a hypothetical bobcat harvest permit being considered in Indiana. Harvest permits would be rationed, with limits on aggregate and individual harvests. A model of permit demand shows that WTP may be subject to “congestion effects” which attenuate welfare gains from relaxing harvest limits. Intuitively, relaxing limits may directly change an individual’s expected harvest and, hence, WTP. Participation may subsequently change, with congestion offsetting welfare increases. These effects may lead to apparent scope insensitivity that may be endemic in the context of rationed goods.
Keywords
Bobcat, contingent valuation, hunting, scope effects, trapping, willingness to pay
Date of this Version
1-22-2024
Recommended Citation
Lancaster, Nicholas A.; Reeling, Carson; Lee, John G.; Melstrom, Richard T.; Caudell, Joe N.; and Albers, Geriann, "Willingness-to-Pay for Rationed Goods: Bobcat Harvest Permits in Indiana" (2024). Department of Agricultural Economics Faculty Publications. Paper 55.
https://docs.lib.purdue.edu/agedocs/55
Comments
This is the publisher PDF of Lancaster NA, Reeling CJ, Lee JG, Melstrom RT, Caudell JN, Albers G. Willingness-to-Pay for Rationed Goods: Bobcat Harvest Permits in Indiana. Journal of Agricultural and Applied Economics. 2024;56(1):70-85. Published CC-BY by Cambridge, the version of record and ADA Title II compliant version is available in HTML at DOI: 10.1017/aae.2024.1.