The effect of knowledge on the disparity between hypothetical and real willingness to pay
The use of a contingent valuation (CV) method is controversial among economists because it is based on hypothetical rather than real economic choices. This paper reports the results of an experiment designed to elicit the real and the hypothetical willingness to pay (WTP) for a private good. The effect of different settings of knowledge (direct and indirect) of the good on subjects' valuation behaviour are investigated. The findings show that (i) a direct knowledge of the good reduces the observed disparity between hypothetical and real WTP; and that (ii) different settings of knowledge generate different perceptions of the characteristics of the good.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 33 (2001)
Issue (Month): 11 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|