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Inducing Incentives to Understate and to Overstate Willingness to Pay within the Open-Ended and the Dichotomous-Choice Elicitation Formats: An Experimental Study.
Department of Economics, Uppsala University, Uppsala, Sweden. (Nationalekonomi)ORCID iD: 0000-0002-1746-7884
1998 (English)In: Journal of Environmental Economics and Management, ISSN 0095-0696, E-ISSN 1096-0449, Vol. 35, p. 88-102Article in journal (Refereed) Published
Abstract [en]

The subject of this paper is a laboratory experiment in which nearly 300 students were asked to state their willingness to pay (WTP) for an actual market good. Two elicitation methods were used: the open-ended (OE) and the dichotomous-choice (DC) formats. The results indicate that individuals respond to incentives in the predicted direction. Further, when an individual had an incentive to overstate his true WTP the DC format yielded higher estimates of WTP than the OE format. When an individual is subjected to opposite incentives the tests suggest no behavioral differences between the two formats.

Place, publisher, year, edition, pages
Elsevier, 1998. Vol. 35, p. 88-102
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:oru:diva-39001DOI: 10.1006/jeem.1997.1016ISI: 000073259500005Scopus ID: 2-s2.0-0031824421OAI: oai:DiVA.org:oru-39001DiVA, id: diva2:765912
Available from: 2014-11-25 Created: 2014-11-25 Last updated: 2017-12-05Bibliographically approved

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Lunander, Anders

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