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The value of familiarity: Effects of knowledge and objective signals on willingness to pay for a public good
journal contribution
posted on 2023-05-18, 06:38 authored by LaRiviere, J, Czajkowski, M, Hanley, N, Aanesen, M, Falk-Petersen, J, Dugald TinchWe 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.
History
Publication title
Journal of Environmental Economics and ManagementVolume
68Pagination
376-389ISSN
0095-0696Department/School
TSBEPublisher
Academic Press Inc Elsevier SciencePlace of publication
525 B St, Ste 1900, San Diego, USA, Ca, 92101-4495Rights statement
Copyright 2014 Elsevier Inc.Repository Status
- Restricted