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Hypothetical versus real willingness to pay: comment

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  • Helen Neill

Abstract

The purpose of this comment is to examine the experimental design and empirical results presented by Johannesson, M., Liljas, B. and Peterson, G. (Applied Economics Letters, 4, 1997). Their paper attempts to confirm the Neill, H. R., Cummings, R. G., Ganderton, P., Harrison, G. W. and McGuckin, T. (Land Economics, 70, 1994) results. Their results are noteworthy since they find no statistical difference between real and hypothetical willingness-to-pay responses between groups. Their results also differ from earlier studies where hypothetical willingness to pay exceeds actual willingness to pay. This comment will examine important differences between the two studies. These differences make any substantive comparison of results difficult, if not impossible.

Suggested Citation

  • Helen Neill, 1999. "Hypothetical versus real willingness to pay: comment," Applied Economics Letters, Taylor & Francis Journals, vol. 6(5), pages 267-269.
    • Handle: RePEc:taf:apeclt:v:6:y:1999:i:5:p:267-269
    DOI: 10.1080/135048599353195
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    References listed on IDEAS

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    1. Helen R. Neill & Ronald G. Cummings & Philip T. Ganderton & Glenn W. Harrison & Thomas McGuckin, 1994. "Hypothetical Surveys and Real Economic Commitments," Land Economics, University of Wisconsin Press, vol. 70(2), pages 145-154.
    2. Smith, V. Kerry & Mansfield, Carol, 1998. "Buying Time: Real and Hypothetical Offers," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 209-224, November.
    3. John Loomis & Thomas Brown & Beatrice Lucero & George Peterson, 1996. "Improving Validity Experiments of Contingent Valuation Methods: Results of Efforts to Reduce the Disparity of Hypothetical and Actual Willingness to Pay," Land Economics, University of Wisconsin Press, vol. 72(4), pages 450-461.
    4. Cummings, Ronald G & Elliott, Steven & Harrison, Glenn W & Murphy, James, 1997. "Are Hypothetical Referenda Incentive Compatible?," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 609-621, June.
    5. Magnus Johannesson & Bengt Liljas & Richard O'Conor, 1997. "Hypothetical versus real willingness to pay: some experimental results," Applied Economics Letters, Taylor & Francis Journals, vol. 4(3), pages 149-151.
    6. Magnus Johannesson, 1997. "Some further experimental results on hypothetical versus real willingness to pay," Applied Economics Letters, Taylor & Francis Journals, vol. 4(8), pages 535-536.
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    Cited by:

    1. Andres Silva & Rodolfo Nayga & Benjamin Campbell & John Park, 2012. "Can perceived task complexity influence cheap talk's effectiveness in reducing hypothetical bias in stated choice studies?," Applied Economics Letters, Taylor & Francis Journals, vol. 19(17), pages 1711-1714.
    2. Pallab Mozumder & Robert P. Berrens, 2007. "Investigating hypothetical bias: induced-value tests of the referendum voting mechanism with uncertainty," Applied Economics Letters, Taylor & Francis Journals, vol. 14(10), pages 705-709.

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