ABSTRACT
The purpose of this chapter is to examine the conceptual foundations for combining models of stated and revealed preferences in empirical applications. Since the advent of stated preference approaches in the 1970s, economists have wondered about the relative virtues of each approach. Comparisons emerged quickly. Bishop and Heberlein (1979) compared contingent valuation measures with real willingness to pay for goose hunting. Brookshire et al. (1982) compared contingent valuation measures with hedonic measures for air quality in Los Angeles. These early comparisons were principally concerned with assessing the validity of stated preference approaches. Since then economists have worked steadily to compare and jointly estimate models of revealed preferences and stated preferences.
