The cross-price effect on willingness-to-pay estimates in open-ended contingent valuation

Lijia Shi, Zhifeng Gao and Xuqi Chen

Food Policy, 2014, vol. 46, issue C, 13-21

Abstract: Previous literature has shown that potential buyers use a reference price or product to form their opinion about the value of a new product. Therefore, the pricing decision is an interactive process. We investigate the two generalizations of the cross-price effect (the neighborhood price effect and the asymmetric price effect) on consumer willingness-to-pay (WTP) for multiple similar products in an open-ended contingent valuation context. Results show that the cross-price effect on WTP is prominent, with the neighborhood price effect holding in contingent valuation. No conclusions are reached about the asymmetric price effect.

Keywords: Contingent valuation; Cross-price effect; Orange juice; Reference price; Willingness to pay (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (13)

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Related works:
Working Paper: The Cross-Price Effect on Willingness-to-pay Estimates in Open-ended Contingent Valuation (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfpoli:v:46:y:2014:i:c:p:13-21

DOI: 10.1016/j.foodpol.2014.01.009

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