In 1997, residents of Maine were surveyed to establish the value they placed on

Question

In 1997, residents of Maine were surveyed to establish the value they placed on the Peregrine Falcon, which at the time was estimated to have 8 breeding pairs in the state. A recovery plan was proposed and survey recipients were asked, "Suppose the proposed fund to increase Maine's Peregrine Falcon population was on the next State ballot. It would cost you $________ in a one-time payment through increased taxes, would you vote to approve the proposal. YES/NO (circle one). The number put into the blank was randomly chosen in order to get a diverse sample of relative value points.

The esimated average williness to pay was $30 (it was actually $29.15, but let's make the math easy and call it $30). The 1997 population of Maine was 1.25 million.

Which of the following is true about this survey?

This survey is incentive-compatible (there is no incentive to answer dishonestly).

This is survey is not incentive-compatible (there are strategic incentives to be dishonest).

This survey is incentive-compatible (there is no incentive to answer dishonestly).

This is survey is not incentive-compatible (there are strategic incentives to be dishonest).

Explanation / Answer

This survey is not incentive-compatible(there are strategic incentives to be dishonest). This is because a person might not pay his share of taxes and still get the incentive of watching the Peregrin Falcon as long as the other people are paying less than $30 as their taxes.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.