I'm very new to the survey format of double-bounded dichotomous-choice for contingent valuation, so I apologize for my naive question. Could you please let me know how a researcher decides the initial value (the first bid) to ask participants? For example:
Question 1: Are you willing to accept 10 dollars to give up something?
- If yes: are you willing to accept 5?
- If no: are you willing to accept 15?
The tree of questions continues according to responses to these 2 questions.
Most research I found did not specify how they decided the first bid (the 10 dollars in the example) and the intervals. I would really appreciate it if someone could enlighten me.
In the research question I'm interested in, there's a previous study in a similar topic that shows the hypothetical equilibrium price to be 1000 and the median WTA to be 500. I feel that 500 could be a good starting point. Thank you very very much.