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Preferences With and Without Prices - does the price attribute affect behavior in stated preference surveys?

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Author Info
Carlsson, Fredrik () (Department of Economics, School of Economics and Commercial Law, Göteborg University)
Frykblom, Peter () (Department of Economics, Appalachian State University)
Lagerkvist, Carl-Johan () (Department of Economics, Swedish University of Agricultural Sciences)

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Abstract

The 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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File URL: http://hdl.handle.net/2077/2753
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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number 150.

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Length: 14 pages
Date of creation: 18 Nov 2004
Date of revision:
Handle: RePEc:hhs:gunwpe:0150

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Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: choice experiment; hypothetical WTP; preference reversal;

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Find related papers by JEL classification:
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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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  6. P. Frykblom & Jason Shogren, 2000. "An Experimental Testing of Anchoring Effects in Discrete Choice Questions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 16(3), pages 329-341, July. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ubilava, David & Foster, Ken, 2007. "Targeting Consumers by Store - The Basis of Increased Sales with Less Advertising," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34909, Southern Agricultural Economics Association. [Downloadable!]
  2. Marit Kragt & Jeff Bennett, 2008. "Designing Choice Experiments to Test for Anchoring and Framing Effects," Environmental Economics Research Hub Research Reports 0810, Environmental Economics Research Hub, Crawford School, Australian National University. [Downloadable!]
  3. Liljenstolpe, Carolina, 2005. "Valuing Animal Welfare with Choice Experiments: An Application to Swedish Pig Production," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24503, European Association of Agricultural Economists. [Downloadable!]
  4. Ubilava, David & Foster, Kenneth A. & Lusk, Jayson L. & Nilsson, Tomas, 2008. "Differences In U.S. Consumer Preferences For Certified Pork Chops When Facing Branded Vs. Non-Branded Choices," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6194, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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