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Warm glow, free‐riding and vehicle neutrality in a health‐related contingent valuation study

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  • Franz Hackl
  • Gerald J. Pruckner

Abstract

Criticism of contingent valuation (CV) stresses warm glow and free‐riding as possible causes for biased willingness to pay figures. We present an empirical framework to study the existence of warm glow and free‐riding in hypothetical WTP answers based on a CV survey for the measurement of health‐related Red Cross services. Both in conventional double‐bounded and spike models we do not find indication of warm glow phenomena and free‐riding behaviour. The results are very robust and insensitive to the applied payment vehicles. Theoretical objections against CV do not find sufficient empirical support. Copyright © 2004 John Wiley & Sons, Ltd.

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  • Franz Hackl & Gerald J. Pruckner, 2005. "Warm glow, free‐riding and vehicle neutrality in a health‐related contingent valuation study," Health Economics, John Wiley & Sons, Ltd., vol. 14(3), pages 293-306, March.
    • Handle: RePEc:wly:hlthec:v:14:y:2005:i:3:p:293-306
    DOI: 10.1002/hec.933
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    1. Andrea Leiter & Gerald Pruckner, 2009. "Proportionality of Willingness to Pay to Small Changes in Risk: The Impact of Attitudinal Factors in Scope Tests," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(2), pages 169-186, February.
    2. Bishop, Richard C., 2018. "Warm Glow, Good Feelings, and Contingent Valuation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(3), September.
    3. Watson, Verity & Ryan, Mandy, 2007. "Exploring preference anomalies in double bounded contingent valuation," Journal of Health Economics, Elsevier, vol. 26(3), pages 463-482, May.
    4. Attema, Arthur & Krol, Marieke & van Exel, Job & Brouwer, Werner, 2014. "New findings from the TTO for income approach to elicit willingness to pay for a QALY," MPRA Paper 61197, University Library of Munich, Germany.
    5. Andrea Leiter, 2011. "Age effects in monetary valuation of reduced mortality risks: the relevance of age-specific hazard rates," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 12(4), pages 331-344, August.
    6. Hackl, Franz & Pruckner, Gerald Josef, 2006. "Demand and supply of emergency help: An economic analysis of Red Cross services," Health Policy, Elsevier, vol. 77(3), pages 326-338, August.
    7. Tilling, C & Krol, M & Tsuchiya, A & Brazier, J & van Exel, J & Brouwer, W, 2009. "Measuring the value of life: exploring a new method for deriving the monetary value of a QALY," MPRA Paper 29911, University Library of Munich, Germany.
    8. Dror, David Mark & Radermacher, Ralf & Koren, Ruth, 2007. "Willingness to pay for health insurance among rural and poor persons: Field evidence from seven micro health insurance units in India," Health Policy, Elsevier, vol. 82(1), pages 12-27, June.

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