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The value of familiarity: Effects of knowledge and objective signals on willingness to pay for a public good
Citation
LaRiviere, J and Czajkowski, M and Hanley, N and Aanesen, M and Falk-Petersen, J and Tinch, DR, The value of familiarity: Effects of knowledge and objective signals on willingness to pay for a public good, Journal of Environmental Economics and Management, 68, (2) pp. 376-389. ISSN 0095-0696 (2014) [Refereed Article]
Copyright Statement
Copyright 2014 Elsevier Inc.
DOI: doi:10.1016/j.jeem.2014.07.004
Abstract
We design and conduct a field experiment in which treated subjects receive a precise and objective signal regarding their knowledge about a public good before estimating their WTP for it. We find that the causal effect of objective signals about the accuracy of a subject׳s knowledge for a public good can dramatically affect their valuation for it: treatment caused a significant increase of $85–$129 in WTP for well-informed individuals. We find no such effect for less informed subjects. Our results imply that WTP estimates for public goods are not only a function of true information states of the respondents but beliefs about those information states.
Item Details
| Item Type: | Refereed Article |
|---|---|
| Keywords: | Information, Beliefs, Field Experiment, Valuation, Uncertainty, Choice experiment |
| Research Division: | Economics |
| Research Group: | Applied Economics |
| Research Field: | Environment and Resource Economics |
| Objective Division: | Environment |
| Objective Group: | Environmental and Natural Resource Evaluation |
| Objective Field: | Environmental and Natural Resource Evaluation not elsewhere classified |
| Author: | Tinch, DR (Dr Dugald Tinch) |
| ID Code: | 97862 |
| Year Published: | 2014 |
| Web of Science® Times Cited: | 12 |
| Deposited By: | Tasmanian School of Business and Economics |
| Deposited On: | 2015-01-16 |
| Last Modified: | 2015-06-09 |
| Downloads: | 0 |
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