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Does 'free-sampling' enhance the value of public goods?

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  • Arthur Caplan
  • Douglas Jackson-Smith
  • Sandy Marquart-Pyatt

Abstract

This study investigates whether 'free sampling' enhances the value of public goods. Using data from a unique field experiment, we find that the WTP premium effect associated with a brief opportunity to consume a local public good for free is relatively small and temporary. It therefore may not be cost effective to offer free-participation incentives for public goods.

Suggested Citation

  • Arthur Caplan & Douglas Jackson-Smith & Sandy Marquart-Pyatt, 2010. "Does 'free-sampling' enhance the value of public goods?," Applied Economics Letters, Taylor & Francis Journals, vol. 17(4), pages 335-339.
    • Handle: RePEc:taf:apeclt:v:17:y:2010:i:4:p:335-339
    DOI: 10.1080/13504850701735872
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    References listed on IDEAS

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    1. David Aadland & Arthur J. Caplan, 2006. "Curbside recycling: Waste resource or waste of resources?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 25(4), pages 855-874.
    2. Thomas C. Kinnaman, 2006. "Policy Watch: Examining the Justification for Residential Recycling," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 219-232, Fall.
    3. Harvey, A C, 1976. "Estimating Regression Models with Multiplicative Heteroscedasticity," Econometrica, Econometric Society, vol. 44(3), pages 461-465, May.
    4. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    5. Cameron, Trudy Ann & James, Michelle D, 1987. "Efficient Estimation Methods for "Closed-ended' Contingent Valuation Surveys," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 269-276, May.
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    Cited by:

    1. Caplan, Arthur J. & Sims, Charles & Anderson, Elliot Jordan, 2014. "Measuring the environmental cost of hypocrisy," Ecological Economics, Elsevier, vol. 108(C), pages 124-135.

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