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

  • Johansson-Stenman , Olof

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

  • Svedsäter, Henrik

    ()

    (Department of Psychology, Göteborg University)

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.

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File URL: http://hdl.handle.net/2077/2822
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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 94.

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Length: 39 pages
Date of creation: 28 Mar 2003
Date of revision:
Handle: RePEc:hhs:gunwpe:0094
Contact details of provider: Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/

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