the respondents are asked to answer

the respondents are asked to answer a simply yes/no question
about the willingness to pay for a specific price: “If the price of a good or service were
$A, would you purchase it?”. The dollar amount $A is so-called bid value, and varied
across respondents. Additionally, there are two other kinds of DC approaches: double-bound (2DC) and triplebound (3DC). Double dichotomous choice means that the respondents initially asked the
1DC question and then asked a supplementary DC questions on the basis of their prior
response. Those who agreed to pay the 1DC bid would face a higher 2DC amount while
those refused to pay the 1DC bid would face a lower 2DC amount. Triple-bound
dichotomous choice has a similar procedure,and extents for a further question.
The findings from the study using dichotomous choice elicitation format are argued to be more
representative for the real value of goods or services in the market 4 but less conservative
than open-ended format,7 because the maximum willingness to pay of people is not
identified. However, we can infer that the respondents may be fond of goods or services
(due to “yes” answer for a specific bid value) or not (due to “no” answer) and therefore we
can estimate the interval of respondents’ WTP through some special statistical models. The
other limitations of dichotomous choice format are yes-saying bias (people participating in the
study tend to choose positive alternative without context or scenario consideration and
larger sample size requirements than other formats. Otherwise, this format exogenously
determines the price and focuses on demand analysis; therefore, it is the best manner to
estimate demand than inverse demand.