| By: |
Johansson-Stenman, Olof (Department of Economics, School of Business, Economics and Law, Göteborg University);
Svedsäter, Henrik (Organisational Behaviour, London Business School, United Kingdom) |
| Abstract: |
Hypothetical bias in stated-preference methods appears sometimes to be very
large, and other times non-existent. This is here largely explained by a model
where people derive utility from a positive self-image associated with morally
commendable behavior. The results of a choice experiment are consistent with
the predictions of this model; the hypothetical marginal willingness to pay
(MWTP) for a moral good (contributions to a WWF project) is significantly
higher than the corresponding real MWTP, whereas no hypothetical bias is
present for an amoral good (a restaurant voucher). Moreover, both the
theoretical model and the experimental evidence suggest that also the real
MWTP for the moral good is biased upwards by being higher within than outside
the experimental context.<p> |
| Keywords: |
Stated-preference methods; choice experiment; hypothetical bias; self-image; non-market valuation; warm glow |
| JEL: |
C91 D63 Q50 |
| Date: |
2011–01–13 |
| URL: |
http://d.repec.org/n?u=RePEc:hhs:gunwpe:0484&r=dcm |