Solving the flip of the coin/unidentification dilemma: a Bayesian perspective on the incentive compatibility of hypothetical referenda

We propose a Bayesian approach that overcomes the i dentification of scale in referendum contingent valuation data with experimental treatment. We apply this approach to the data originally collected by Cummings et al. (1997) and commented by Haab et al. (1999) and further rejoined by other studies. The results support the substantive findings of a higher rate of “yes” resp onses under hypothetical treatment, and provide a feasible solution for the lack of identification of the scale parameter.