Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/19836
Appears in Collections:Economics Working Papers
Peer Review Status: Refereed
Title: What is the Causal Effect of Information and Learning about a Public Good on Willingness to Pay?
Other Titles: SEDP-2014-05
Authors: Czajkowski, Mikolaj
Hanley, Nicholas
LaRiviere, Jacob
Simpson, Katherine
Contact Email: miq@wne.uw.edu.pl
Citation: Czajkowski M, Hanley N, LaRiviere J & Simpson K (2014) What is the Causal Effect of Information and Learning about a Public Good on Willingness to Pay?. Stirling Economics Discussion Paper, 2014-05.
Keywords: Bayesian
Public Goods
Behavioral Economics
Stated Preference
JEL Code(s): Q51
D83
D81
Issue Date: Apr-2014
Series/Report no.: Stirling Economics Discussion Paper, 2014-05
Abstract: In this study we elicit agents' prior information set regarding a public good, exogenously give information treatments to survey respondents and subsequently elicit willingness to pay for the good and posterior information sets. The design of this field experiment allows us to perform theoretically motivated hypothesis testing between different updating rules: non-informative updating, Bayesian updating, and incomplete updating. We find causal evidence that agents imperfectly update their information sets. We also field causal evidence that the amount of additional information provided to subjects relative to their pre-existing information levels can affect stated WTP in ways consistent overload from too much learning. This result raises important (though familiar) issues for the use of stated preference methods in policy analysis.
Type: Working or Discussion Paper
URI: http://hdl.handle.net/1893/19836
Affiliation: University of Warsaw
Economics
University of Tennessee
Economics

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