Willingness to Pay and Sensitivity to Time Framing: A Theoretical Analysis and an Application on Car Safety
Gunnar Lindberg and
No 11.20.354, LERNA Working Papers from LERNA, University of Toulouse
Stated preference (SP) surveys attempt to obtain monetary values for non-market goods that reflect individualsâ€™ â€œtrueâ€ preferences. Numerous empirical studies suggest that monetary values from SP studies are sensitive to survey design and so may not reflect respondentsâ€™ true preferences. This study examines the effect of time framing on respondentsâ€™ willingness to pay (WTP) for car safety.We explore how WTP per unit risk reduction depends on the time period over which respondents pay and face reduced risk in a theoretical model and by using data from a Swedish contingent valuation survey. We find that WTP is sensitive to time framing; the theoretical model predicts that the effect is likely to be nontrivial, and empirical estimates from an annual scenario are about 70 percent higher than estimates from a monthly scenario.
Keywords: Car safety; Contingent valuation; Time frame; Willingness to pay (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://www2.toulouse.inra.fr/lerna/travaux/cahiers2011/11.20.354.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www2.toulouse.inra.fr:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)
Journal Article: Willingness to Pay and Sensitivity to Time Framing: A Theoretical Analysis and an Application on Car Safety (2013)
Working Paper: Willingness to Pay and Sensitivity to Time Framing: A Theoretical Analysis and an Application on Car Safety (2011)
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:ler:wpaper:25325
Access Statistics for this paper
More papers in LERNA Working Papers from LERNA, University of Toulouse Contact information at EDIRC.
Bibliographic data for series maintained by Maxime MARTY ( this e-mail address is bad, please contact ).