Skip to main content

The effect of knowledge on the disparity between hypothetical and real willingness to pay

Buy Article:

$47.50 plus tax (Refund Policy)

The use of a contingent valuation (CV) method is controversial among economists because it is based on hypothetical rather than real economic choices. This paper reports the results of an experiment designed to elicit the real and the hypothetical willingness to pay (WTP) for a private good. The effect of different settings of knowledge (direct and indirect) of the good on subjects' valuation behaviour are investigated. The findings show that (i) a direct knowledge of the good reduces the observed disparity between hypothetical and real WTP; and that (ii) different settings of knowledge generate different perceptions of the characteristics of the good.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
No Metrics

Document Type: Research Article

Publication date: 2001-09-15

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more