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Self-image and valuation of moral goods: Stated versus actual willingness to pay

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  • Johansson-Stenman, Olof
  • Svedsäter, Henrik

Abstract

Hypothetical bias in stated-preference methods appears sometimes to be very large, and other times non-existent. This is here largely explained by a model where people derive utility from a positive self-image associated with morally commendable behavior. The results of a choice experiment are consistent with the predictions of this model; the hypothetical marginal willingness to pay (MWTP) for a moral good (contributions to a WWF project) is significantly higher than the corresponding real-money MWTP, whereas no hypothetical bias is seen for an amoral good (a restaurant voucher). Moreover, the evidence suggests that also the real-money MWTP for the moral good is biased upwards, in the sense that it appears to be higher within than outside the experimental context.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 84 (2012)
Issue (Month): 3 ()
Pages: 879-891

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Handle: RePEc:eee:jeborg:v:84:y:2012:i:3:p:879-891

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Web page: http://www.elsevier.com/locate/jebo

Related research

Keywords: Stated-preference methods; Choice experiment; Hypothetical bias; Self-image; Non-market valuation; Warm glow;

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References

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Cited by:
  1. Piotr Ćwiakowski & Marek Giergiczny & Michał Krawczyk, 2013. "Pirates in the lab. Using incentivized choice experiments to explore preference for (un)authorized content," Working Papers 2013-25, Faculty of Economic Sciences, University of Warsaw.

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