Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 251: Does context matter more for hypothetical than for actual contributions? Evidence from a natural field experiment

Francisco Alpizar (), Fredrik Carlsson () and Olof Johansson-Stenman ()
Additional contact information
Francisco Alpizar: Environment for Development Center, Tropical Agricultural and Higher Education Center (CATIE), Postal: 7170 Turrialba, Costa Rica
Fredrik Carlsson: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG
Olof Johansson-Stenman: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG

Abstract: We investigate the importance of the social context for people’s voluntary contributions to a national park in Costa Rica, using a natural field experiment. Some subjects make actual contributions while others state their hypothetical contribution. Both the degree of anonymity and provided information about the contributions of others influence subject contributions in the hypothesized direction. We do find a substantial hypothetical bias with regard to the amount contributed. However, the influence of the social contexts is about the same when the subjects make actual monetary contributions as when they state theirhypothetical contributions. Our results have important implications for validity testing of stated preference methods: a comparison between hypothetical and actual behavior should be done for a given social context.

Keywords: Environmental valuation; stated preference methods; voluntary contributions; anonymity; conformity; natural field experiment

JEL-codes: C93; Q50

19 pages, April 19, 2007

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