Preferences with and without prices - does the price attribute affect behavior in stated preference surveys?
AbstractThe experimental as well as the nonmarket valuation literature include several examples of how an introduced price can affect behavior in otherwise not expected ways. It has become standard to include a price vector as an attribute in choice experiments, something that enables us to estimate a marginal willingness to pay for other attributes. We test the impact on preferences by an inclusion of a price in a choice experiment. Preferences are affected, as might be expected. However, also the relative ranking of individual attributes is affected. We end on a positive note, observing that a price seems to drive out zero price opinions, e.g. warm glow values.
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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 38 (2007)
Issue (Month): 2 (October)
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Web page: http://www.springerlink.com/link.asp?id=100263
Choice experiment; Non-market valuation; Preference reversal; Warm glow; D12; Q19; Q51;
Other versions of this item:
- Carlsson, Fredrik & Frykblom, Peter & Lagerkvist, Carl-Johan, 2004. "Preferences With and Without Prices - does the price attribute affect behavior in stated preference surveys?," Working Papers in Economics 150, University of Gothenburg, Department of Economics.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
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