Putting One's Money Where One's Mouth is: Increasing Saliency in the Field

Daniel Brent, Lata Gangadharan (), Anke Leroux and Paul Raschky

No 43-14, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: We present a novel approach to address differences between stated and paid choices by incentivizing stated choices in a randomized field experiment. The treatment increases consequentiality in the field by making each decision financially relevant. Our results show that the treatment effect is small in aggregate. However, we find that the treatment increases estimates of the marginal utility of income, especially among low-income households. The treatment also affects estimates of preferences for specific attributes by reducing willingness to pay for attributes with indirect benefits. Respondents with greater self-reported environmental preferences are more susceptible to the treatment in attribute space.

Keywords: Field experiment; non-market goods; stated preference; hypothetical bias (search for similar items in EconPapers)
JEL-codes: C93 Q51 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2014-09
New Economics Papers: this item is included in nep-dcm, nep-exp and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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