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Preferences with and without prices - does the price attribute affect behavior in stated preference surveys?

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  • Fredrik Carlsson

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  • Peter Frykblom
  • Carl Lagerkvist

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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Suggested Citation

  • Fredrik Carlsson & Peter Frykblom & Carl Lagerkvist, 2007. "Preferences with and without prices - does the price attribute affect behavior in stated preference surveys?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(2), pages 155-164, October.
  • Handle: RePEc:kap:enreec:v:38:y:2007:i:2:p:155-164
    DOI: 10.1007/s10640-006-9068-1
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    References listed on IDEAS

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    Cited by:

    1. Ubilava, David & Foster, Kenneth A., 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.
    2. Vásquez, William F., 2011. "Household preferences and governance of water services: A hedonic analysis from rural Guatemala," IFPRI discussion papers 1152, International Food Policy Research Institute (IFPRI).
    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.
    4. Ortega, David L. & Wang, H. Holly & Wu, Laping & Olynk, Nicole J., 2011. "Modeling heterogeneity in consumer preferences for select food safety attributes in China," Food Policy, Elsevier, vol. 36(2), pages 318-324, April.
    5. repec:ucp:mresec:doi:10.1086/692091 is not listed on IDEAS
    6. Fredrik Carlsson & Mitesh Kataria & Elina Lampi, 2010. "Dealing with Ignored Attributes in Choice Experiments on Valuation of Sweden’s Environmental Quality Objectives," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(1), pages 65-89, September.
    7. Ubilava, David & Foster, Kenneth A. & Lusk, Jayson L. & Nilsson, Tomas K.H., 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).
    8. Aravena, Claudia & Martinsson, Peter & Scarpa, Riccardo, 2014. "Does money talk? — The effect of a monetary attribute on the marginal values in a choice experiment," Energy Economics, Elsevier, vol. 44(C), pages 483-491.
    9. Colombo, S. & Angus, A. & Morris, J. & Parsons, D.J. & Brawn, M. & Stacey, K. & Hanley, N., 2009. "A comparison of citizen and "expert" preferences using an attribute-based approach to choice," Ecological Economics, Elsevier, vol. 68(11), pages 2834-2841, September.
    10. Laurent Muller & Bernard Ruffieux, 2011. "Do price-tags influence consumers’ willingness to pay? On the external validity of using auctions for measuring value," Experimental Economics, Springer;Economic Science Association, vol. 14(2), pages 181-202, May.
    11. Merk, Christine & Rehdanz, Katrin & Schmidt, Ulrich & Schröder, Carsten, 2015. "Violations of scale compatibility: results from pricing tasks and choice tasks in choice experiments," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113023, Verein für Socialpolitik / German Economic Association.
    12. repec:eee:ecoser:v:22:y:2016:i:pb:p:289-296 is not listed on IDEAS
    13. repec:ags:jlaare:258001 is not listed on IDEAS
    14. Sebastian Lehmann, 2014. "Toward an Understanding of the BDM: Predictive Validity, Gambling Effects, and Risk Attitude," FEMM Working Papers 150001, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    15. Zander, Kerstin K. & Straton, Anna, 2010. "An economic assessment of the value of tropical river ecosystem services: Heterogeneous preferences among Aboriginal and non-Aboriginal Australians," Ecological Economics, Elsevier, vol. 69(12), pages 2417-2426, October.
    16. Moore, Rebecca, 2013. "Prioritizing Ecosystem Service Protection and Conservation Efforts in the Forest Plantations of the Red Hills," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 1), pages 1-26, April.
    17. Carnegie, Rachel & Wang, Holly & Widmar, Nicole & Ortega, David, 2014. "Consumer Preferences for Quality and Safety Attributes of Duck in Restaurant Entrees: Is China A Viable Market for The U.S. Duck Industry?," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170717, Agricultural and Applied Economics Association.
    18. Ovchinnikova, Natalia V. & Czap, Hans J. & Lynne, Gary D. & Larimer, Christopher W., 2009. ""I don't want to be selling my soul": Two experiments in environmental economics," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 221-229, March.
    19. repec:ags:ifaamr:264212 is not listed on IDEAS
    20. Ubilava, David & Foster, Kenneth, 2009. "Quality certification vs. product traceability: Consumer preferences for informational attributes of pork in Georgia," Food Policy, Elsevier, vol. 34(3), pages 305-310, June.
    21. Morten Mørkbak & Tove Christensen & Dorte Gyrd-Hansen, 2010. "Choke Price Bias in Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(4), pages 537-551, April.
    22. Carlucci, Domenico & Dedevitiis, Biagia & Nardone, Gianluca & Santeramo, Fabio Gaetano, 2016. "Certification Labels Vs Convenience Formats: What drives the market in aquaculture products?," MPRA Paper 75448, University Library of Munich, Germany.
    23. repec:eee:ecoser:v:17:y:2016:i:c:p:87-98 is not listed on IDEAS

    More about this item

    Keywords

    Choice experiment; Non-market valuation; Preference reversal; Warm glow; D12; Q19; Q51;

    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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