A method of paired comparison is adapted for use in estimating economic measures
of value. The method elicits multiple binary choices for paired items in a choice
set. Probability distributions and economic values are estimated nonparametrically
and parametrically. The method is applied in an experimental context with a choice
set composed of four private goods and several sums of money. The sample’s
median value estimates for the goods are generally not different than the market
prices for these goods. People who are in the market for a good value the good higher
than those not in the market for the good.