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Preferences With and Without Prices - does the price attribute affect behavior in stated preference surveys?

  • Carlsson, Fredrik

    ()

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

  • Frykblom, Peter

    ()

    (Department of Economics, Appalachian State University)

  • Lagerkvist, Carl-Johan

    ()

    (Department of Economics, Swedish University of Agricultural Sciences)

The experimental as well as the nonmarket valuation literature include several examples of how an introduced price can affect behavior in otherwise not expected ways. It has become standard to include a price vector as an attribute in choice experiments, something that enables us to estimate a marginal willingness to pay for other attributes. We test the impact on preferences by an inclusion of a price in a choice experiment. Preferences are affected, as might be expected. However, also the relative ranking of individual attributes is affected. We end on a positive note, observing that a price seems to drive out zero price opinions, e.g. warm glow values.

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File URL: http://hdl.handle.net/2077/2753
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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 150.

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Length: 14 pages
Date of creation: 18 Nov 2004
Date of revision:
Handle: RePEc:hhs:gunwpe:0150
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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