Abstract

This paper revisits the Bayesian updating hypothesis commonly used in non-market valuation. Supposing people make rational choices, I examine the effects of variations in useful information on people choices. A choice experiment about mining tradeoff specifically relates respondents’ decisions to their prior beliefs. Results show a persistent mismatch between respondents’ choices in presence of useful information. Prior beliefs on mining consequences can influence the effects of information on stated choices. The challenge to unlock useful information is essential in resource valuation. However, information selection and provision may mask a large variation in preference heterogeneity.

Practical information