Working Papers, Swedish National Road & Transport Research Institute (VTI)
Willingness to Pay for Car Safety: Sensitivity to Time Framing
(), James Hammitt
(), Gunnar Lindberg
() and Kristian Sundström
Abstract: Stated preference (SP) surveys attempt to obtain monetary
values for non-market goods that reflect individuals' “true”' preferences.
Numerous empirical studies suggest that monetary values from SP studies are
sensitive to survey design and so may not reflect respondents' true
preferences. This study examines the effect of time framing on respondents'
willingness to pay (WTP) for car safety. We explore how WTP per unit risk
reduction depends on the time period over which respondents pay and face
reduced risk. Using data from a Swedish contingent valuation survey, we
find that WTP is sensitive to time framing; estimates based on an annual
scenario are about 30 to 70 percent higher than estimates from a monthly
Keywords: Car safety; Contingent valuation; Double bound; Willingness to pay; (follow links to similar papers)
JEL-Codes: C52; D60; I10; Q51; (follow links to similar papers)
27 pages, July 3, 2008
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