Hypothetical bias and framing effect in the valuation of private consumer goods

Brzozowicz Magdalena
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Brzozowicz Magdalena: Faculty of Economic Sciences, University of Warsaw, Warsaw, Poland

Central European Economic Journal, 2018, vol. 5, issue 52, 260-269

Abstract: In a laboratory experiment, I examined two behavioural effects: hypothetical bias and the framing effect. I elicited willingness to pay (WTP) for a cosmetic product, and manipulated framing conditions (positive vs. negative attribute framing) and incentives to reveal the actual valuation (hypothetical vs. real). I demonstrated that hypothetical bias has a significant impact on WTP values; however, the framing effect has no effect on the valuation of the product. Similarly, I found no interaction between the two effects. This observation contributes to claims that hypothetical research methods lead to equally reliable data as those based on consequential choices.

Keywords: framing effect; hypothetical bias; laboratory experiment (search for similar items in EconPapers)
JEL-codes: C91 D91 M31 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ceuecj:v:5:y:2018:i:52:p:260-269:n:20

DOI: 10.1515/ceej-2018-0024

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