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Within- and between- sample tests of preference stability and willingness to pay for forest management

Author

Listed:
  • Mikołaj Czajkowski

    (Faculty of Economic Sciences, University of Warsaw)

  • Anna Bartczak

    (Faculty of Economic Sciences, University of Warsaw; Warsaw Ecological Economics Center)

  • Wiktor Budziński

    (Faculty of Economic Sciences, University of Warsaw)

  • Marek Giergiczny

    (Faculty of Economic Sciences, University of Warsaw; Warsaw Ecological Economics Center)

Abstract

The assumption of the stability of preferences is a fundamental one in the theory of the consumer. Many papers within the stated preferences literature have tested this assumption, and have found mixed results. Individuals may become more sure of their preferences as they repeat a valuation task or purchase decision; they may also learn more about prices and quantities of substitutes or complements over time, or about other relevant characteristics of both the good being valued and alternatives in their choice sets. In this paper, we test for the stability of preferences and willingness to pay for attributes of forest management both within and between samples. The within-sample test compares a set of responses from individuals over the sequence of a survey; the between-sample test compares responses from the same people over a period of 6 months. We find that respondents’ preferences differ more within a sample (comparing their first 12 with their second 12 choices) than across samples. This may imply that preference learning and/or fatigue effects within choice experiments are more important than changes in preferences over time in this data.

Suggested Citation

  • Mikołaj Czajkowski & Anna Bartczak & Wiktor Budziński & Marek Giergiczny, 2014. "Within- and between- sample tests of preference stability and willingness to pay for forest management," Working Papers 2014-24, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2014-24
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    File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP141.pdf
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    References listed on IDEAS

    as
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    Cited by:

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    3. Denise Doiron & Hong Il Yoo, 2017. "Temporal Stability of Stated Preferences: The Case of Junior Nursing Jobs," Health Economics, John Wiley & Sons, Ltd., vol. 26(6), pages 802-809, June.
    4. Dan Rigby & Michael Burton & Jo Pluske, 2016. "Preference Stability and Choice Consistency in Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(2), pages 441-461, October.

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    More about this item

    Keywords

    preference stability; test-retest; discrete choice experiments; contingent valuation; stated preferences; forestry;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • H4 - Public Economics - - Publicly Provided Goods
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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