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Self Image And Choice Experiments: Hypothetical And Actual Willingness To Pay

Author

Listed:
  • Johansson-Stenman , Olof

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Svedsäter, Henrik

    () (Department of Psychology, Göteborg University)

Abstract

This paper proposes that people derive utility from a positive self-image, influenced by ethical views, internal honesty, and consistency between sequential choices. A model is tested by conducting the same choice-experiment for two WWF-campaigns in three different contexts. It predicts that marginal WTP for contributions to these campaigns is highest when choices are hypothetical, lower in a real-money experiment that follows a hypothetical experiment, and lowest when real-money choices are made directly. Additionally, it predicts that marginal WTP decreases with the scale of financial incentives in a real-money experiment. The empirical results are consistent with these hypotheses.

Suggested Citation

  • Johansson-Stenman , Olof & Svedsäter, Henrik, 2003. "Self Image And Choice Experiments: Hypothetical And Actual Willingness To Pay," Working Papers in Economics 94, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0094
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    File URL: http://hdl.handle.net/2077/2822
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Svensson, Mikael, 2006. "The Value of a Statistical Life in Sweden Estimates from Two Studies using the "Certainty Approach" Calibration," Working Papers 2006:6, Örebro University, School of Business, revised 12 May 2009.
    2. Hiselius, Lena Winslott, 2005. "Preferences regarding road transports of hazardous materials using choice experiments - any sign of biases?," Working Papers 2005:30, Lund University, Department of Economics.
    3. Hiselius, Lena Winslott, 2004. "Using Choice Experiments to Assess Peoples' Preferences for Railway Transports of Hazardous Materials," Working Papers 2004:6, Lund University, Department of Economics.
    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. Johansson-Stenman, Olof & Martinsson, Peter, 2006. "Honestly, why are you driving a BMW?," Journal of Economic Behavior & Organization, Elsevier, vol. 60(2), pages 129-146, June.
    6. Hensher, David A., 2010. "Hypothetical bias, choice experiments and willingness to pay," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 735-752, July.
    7. Carlsson, Fredrik & Frykblom, Peter & Johan Lagerkvist, Carl, 2005. "Using cheap talk as a test of validity in choice experiments," Economics Letters, Elsevier, vol. 89(2), pages 147-152, November.
    8. Harry Telser & Peter Zweifel, 2007. "Validity of discrete-choice experiments evidence for health risk reduction," Applied Economics, Taylor & Francis Journals, vol. 39(1), pages 69-78.
    9. Carlsson, Fredrik & Frykblom, Peter & Lagerkvist, Carl Johan, 2004. "Consumer willingness to pay for farm animal welfare - transportation of farm animals to slaughter versus the use of mobile abattoirs," Working Papers in Economics 149, University of Gothenburg, Department of Economics.
    10. Kataria, Mitesh, 2009. "Willingness to pay for environmental improvements in hydropower regulated rivers," Energy Economics, Elsevier, vol. 31(1), pages 69-76, January.
    11. J. D. Snowball & K. G. Willis, 2011. "Interview versus self-completion questionnaires in discrete choice experiments," Applied Economics Letters, Taylor & Francis Journals, vol. 18(16), pages 1521-1525.
    12. van Kempen, Luuk & Muradian, Roldan & Sandóval, César & Castañeda, Juan-Pablo, 2009. "Too poor to be green consumers? A field experiment on revealed preferences for firewood in rural Guatemala," Ecological Economics, Elsevier, vol. 68(7), pages 2160-2167, May.

    More about this item

    Keywords

    choice experiment; self-image; hypothetical and real WTP; cognitive dissonance; environmental valuation;

    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

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