Do Experience and Cheap Talk influence Willingness to Pay in an Open-Ended Contingent Valuation Survey?
Fredrik Carlsson () and
No 190, Working Papers in Economics from University of Gothenburg, Department of Economics
In this paper we analyze the effect of information on respondents’ willingness to pay to avoid power outages in Sweden, by employing an open-ended contingent valuation survey.Two aspects of information are tested; (i) if increased experience from power outages manifested by one of the worst hurricanes ever in Sweden with long power outages as a result and (ii) if a cheap talk script affect the respondents’ WTP. The results indicate that experience increases the proportion of respondents with a zero WTP significantly, which is consistent with the view presented in media in the backwash of the hurricane stressing the right to access power without outages. On the other hand, the cheap talk script decreased the proportion of respondents with zero WTP. In both cases, however, there is no significant effect on the stated WTP conditional on reporting a positive WTP. Thus,information seems to affect the proportion of respondents with a zero WTP, and implications of this on future applications of open-ended contingent valuation surveys are discussed.
Keywords: Contingent Valuation; Cheap talk; Information; Power outages (search for similar items in EconPapers)
JEL-codes: C25 C93 D12 Q41 (search for similar items in EconPapers)
Note: Published with new title "The effect of power outages and cheap talk on willingness to pay to reduce outages" in Energy Economics, 2011, Vol. 33, pp. 790-798.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed
Published as Carlsson, Fredrik and Peter Martinsson, 'Do Experience and Cheap Talk influence Willingness to Pay in an Open-Ended Contingent Valuation Survey? New title (when published): The effect of power outages and cheap talk on willingness to pay to reduce outages' in Energy Economics, 2011, pages 790-798.
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hhs:gunwpe:0190
Access Statistics for this paper
More papers in Working Papers in Economics from University of Gothenburg, Department of Economics Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Marie Andersson ().