Self-image and valuation of moral goods: Stated versus actual willingness to pay
AbstractHypothetical 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 InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 84 (2012)
Issue (Month): 3 ()
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Web page: http://www.elsevier.com/locate/jebo
Stated-preference methods; Choice experiment; Hypothetical bias; Self-image; Non-market valuation; Warm glow;
Find related papers by JEL classification:
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
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