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An Experimental Validation of Hypothetical WTP for a Recyclable Product

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  • Eva Camacho-Cuena
  • Aurora García-Gallego
  • Nikolaos Georgantzís
  • Gerardo Sabater-Grande

Abstract

Using a within-subject experiment, we compare hypothetical andreal willingness to pay (WTP) for an improvement in therecyclability of a product. Subjects are faced with a real paymentscenario after they have responded to a hypothetical question.Contrary to most of the results obtained in similar studies, at apopulation level, there are no significant median differencesbetween actual and hypothetical stated values of WTP. However,within-subject comparisons between hypothetical and actual valuesindicate that subjects stating a low (high) hypothetical WTP tendto underestimate (overestimate) the value of their actualcontributions. Copyright Kluwer Academic Publishers 2004

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  • Eva Camacho-Cuena & Aurora García-Gallego & Nikolaos Georgantzís & Gerardo Sabater-Grande, 2004. "An Experimental Validation of Hypothetical WTP for a Recyclable Product," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(3), pages 313-335, March.
    • Handle: RePEc:kap:enreec:v:27:y:2004:i:3:p:313-335
    DOI: 10.1023/B:EARE.0000017657.08513.74
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    Cited by:

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    2. Spash, Clive L., 2008. "The Contingent Valuation Method: Retrospect and Prospect," MPRA Paper 101234, University Library of Munich, Germany.
    3. Kanya, Lucy & Sanghera, Sabina & Lewin, Alex & Fox-Rushby, Julia, 2019. "The criterion validity of willingness to pay methods: A systematic review and meta-analysis of the evidence," Social Science & Medicine, Elsevier, vol. 232(C), pages 238-261.
    4. Volker Lingnau & Florian Fuchs & Florian Beham, 2019. "The impact of sustainability in coffee production on consumers’ willingness to pay–new evidence from the field of ethical consumption," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(1), pages 65-93, April.
    5. Hernández, Penélope & Vila, José, 2014. "Measuring value levers: Experimental and contingent approaches," Journal of Business Research, Elsevier, vol. 67(5), pages 775-778.
    6. Giuseppe Attanasi & Francesco Passarelli & Giulia Urso & Hana Cosic, 2019. "Privatization of a Tourism Event: Do Attendees Perceive it as a Risky Cultural Lottery?," Sustainability, MDPI, vol. 11(9), pages 1-16, May.
    7. Kanya, Lucy & Saghera, Sabina & Lewin, Alex & Fox-Rushby, Julia, 2019. "The criterion validity of willingness to pay methods: a systematic review and meta-analysis of the evidence," LSE Research Online Documents on Economics 100741, London School of Economics and Political Science, LSE Library.
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    9. Iván Barreda-Tarrazona & Juan Matallín-Sáez & Mª Balaguer-Franch, 2011. "Measuring Investors’ Socially Responsible Preferences in Mutual Funds," Journal of Business Ethics, Springer, vol. 103(2), pages 305-330, October.
    10. Joseph Little & Robert Berrens, 2004. "Explaining Disparities between Actual and Hypothetical Stated Values: Further Investigation Using Meta-Analysis," Economics Bulletin, AccessEcon, vol. 3(6), pages 1-13.
    11. Higgins, Kieran & Hutchinson, W. George & Longo, Alberto, 2020. "Willingness-to-Pay for Eco-Labelled Forest Products in Northern Ireland: An Experimental Auction Approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).
    12. Nababan, Tongam Sihol & Simanjuntak, Juara, 2008. "Aplikasi Willingness To Pay Sebagai Proksi Terhadap Variabel Harga: Suatu Model Empirik Dalam Estimasi Permintaan Energi Listrik Rumah Tangga [The Application of Willingness To Pay As A Proxy To Va," MPRA Paper 49155, University Library of Munich, Germany.
    13. Tully, Stephanie M. & Winer, Russell S., 2014. "The Role of the Beneficiary in Willingness to Pay for Socially Responsible Products: A Meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 255-274.
    14. Chen, Chialin & Liu, Lucy Qian, 2014. "Pricing and quality decisions and financial incentives for sustainable product design with recycled material content under price leadership," International Journal of Production Economics, Elsevier, vol. 147(PC), pages 666-677.
    15. Kaufman, Noah, 2014. "Overcoming the barriers to the market performance of green consumer goods," Resource and Energy Economics, Elsevier, vol. 36(2), pages 487-507.
    16. Vásquez Lavin, Felipe & Barrientos, Manuel & Castillo, Álvaro & Herrera, Iván & Ponce Oliva, Roberto D., 2020. "Firewood certification programs: Key attributes and policy implications," Energy Policy, Elsevier, vol. 137(C).
    17. Aurora García-Gallego & Nikolaos Georgantzís & Daniel Navarro-Martínez & Gerardo Sabater-Grande, 2011. "The stochastic component in choice and regression to the mean," Theory and Decision, Springer, vol. 71(2), pages 251-267, August.

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