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Preferences with and without prices - does the price attribute affect behavior in stated preference surveys?
Authors:Fredrik Carlsson  Peter Frykblom  Carl Johan Lagerkvist
Affiliation:(1) Department of Economics, Gothenburg University, Post Box 640, 405 30 Gothenburg, Sweden;(2) Department of Economics, Swedish University of Agricultural Sciences, Post Box 7013, 750 07 Uppsala, Sweden
Abstract:The experimental as well as the non-market 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.
Keywords:Choice experiment  Non-market valuation  Preference reversal  Warm glow
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