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Self-image and valuation of moral goods: Stated versus actual willingness to pay

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  • Johansson-Stenman, Olof
  • Svedsäter, Henrik

Abstract

Hypothetical bias in stated-preference methods appears sometimes to be very large, and other times non-existent. This is here largely explained by a model where people derive utility from a positive self-image associated with morally commendable behavior. The results of a choice experiment are consistent with the predictions of this model; the hypothetical marginal willingness to pay (MWTP) for a moral good (contributions to a WWF project) is significantly higher than the corresponding real-money MWTP, whereas no hypothetical bias is seen for an amoral good (a restaurant voucher). Moreover, the evidence suggests that also the real-money MWTP for the moral good is biased upwards, in the sense that it appears to be higher within than outside the experimental context.

Suggested Citation

  • Johansson-Stenman, Olof & Svedsäter, Henrik, 2012. "Self-image and valuation of moral goods: Stated versus actual willingness to pay," Journal of Economic Behavior & Organization, Elsevier, vol. 84(3), pages 879-891.
  • Handle: RePEc:eee:jeborg:v:84:y:2012:i:3:p:879-891 DOI: 10.1016/j.jebo.2012.10.006
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    Cited by:

    1. Piotr Ćwiakowski & Marek Giergiczny & Michał Krawczyk, 2013. "Pirates in the lab. Using incentivized choice experiments to explore preference for (un)authorized content," Working Papers 2013-25, Faculty of Economic Sciences, University of Warsaw.
    2. Vlaeminck, Pieter & Jiang, Ting & Vranken, Liesbet, 2014. "How can environmental information align consumer behaviour with attitude? Evidence from a field experiment," Working Papers 162425, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    3. Ek, Claes, 2015. "Prosocial Behavior and Policy Spillovers: A Multi-Activity Approach," Working Papers 2015:26, Lund University, Department of Economics, revised 11 Sep 2017.
    4. Araña, Jorge E. & León, Carmelo J., 2013. "Dynamic hypothetical bias in discrete choice experiments: Evidence from measuring the impact of corporate social responsibility on consumers demand," Ecological Economics, Elsevier, vol. 87(C), pages 53-61.
    5. Tor Eriksson & Lei Mao & Marie Claire Villeval, 2017. "Saving face and group identity," Experimental Economics, Springer;Economic Science Association, vol. 20(3), pages 622-647, September.
    6. Vlaeminck, Pieter & Jiang, Ting & Vranken, Liesbet, 2014. "Labelling and consumer behaviour: experimental evidence from a Belgian supermarket," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182742, European Association of Agricultural Economists.
    7. repec:kap:enreec:v:67:y:2017:i:3:d:10.1007_s10640-016-0028-0 is not listed on IDEAS
    8. Alpízar, Francisco & Martinsson, Peter & Nordén, Anna, 2015. "Do entrance fees crowd out donations for public goods? Evidence from a protected area in Costa Rica," Environment and Development Economics, Cambridge University Press, vol. 20(03), pages 311-326, June.
    9. Uehleke, Reinhard & Hüttel, Silke, 2016. "The Hypothetical Free-Rider Deficit In The Demand For Farm Animal Welfare Labeled Meat," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244866, German Association of Agricultural Economists (GEWISOLA).
    10. Michal Jakubczyk, 2016. "Choosing from multiple alternatives in cost-effectiveness analysis with fuzzy willingness-to-pay/accept and uncertainty," Working Papers 2016-006, Warsaw School of Economics, Collegium of Economic Analysis.
    11. Goytom Abraha Kahsay & Workineh Asmare Kassie & Abebe Damte Beyene & Lars Gårn Hansen, 2017. "Do public works programs crowd-out pro-environmental behavior? Empirical evidence from food-for-work programs in Ethiopia," IFRO Working Paper 2017/13, University of Copenhagen, Department of Food and Resource Economics.
    12. Lea Skræp Svenningsen, 2017. "Distributive outcomes matter: Measuring social preferences for climate policy," IFRO Working Paper 2017/11, University of Copenhagen, Department of Food and Resource Economics.
    13. Mørkbak, Morten Raun & Olsen, Søren Bøye & Campbell, Danny, 2014. "Behavioral implications of providing real incentives in stated choice experiments," Journal of Economic Psychology, Elsevier, vol. 45(C), pages 102-116.

    More about this item

    Keywords

    Stated-preference methods; Choice experiment; Hypothetical bias; Self-image; Non-market valuation; Warm glow;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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