Working Papers in Economics
Preferences With and Without Prices - does the price attribute affect behavior in stated preference surveys?
(), Peter Frykblom
() and Carl-Johan Lagerkvist
Abstract: 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.
Keywords: choice experiment; hypothetical WTP; preference reversal; (follow links to similar papers)
JEL-Codes: D12; Q13; (follow links to similar papers)
14 pages, November 18, 2004
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