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dc.contributor.authorLaRiviere, Jacoben_UK
dc.contributor.authorCzajkowski, Mikolajen_UK
dc.contributor.authorHanley, Nicholasen_UK
dc.contributor.authorAanesen, Margretheen_UK
dc.contributor.authorFalk-Peterson, Jannikeen_UK
dc.contributor.authorTinch, Dugalden_UK
dc.description.abstractThis paper compares how increases in experience versus increases in knowledge about a public good affect willingness to pay (WTP) for its provision. This is challenging because while consumers are often certain about their previous experiences with a good, they may be uncertain about the accuracy of their knowledge. We therefore 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. Using data for two different public goods, we show qualitative equivalence of the effect of knowledge and experience on valuation for a public good. Surprisingly, though, 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 causes an increase of $150-$200 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.en_UK
dc.relationLaRiviere J, Czajkowski M, Hanley N, Aanesen M, Falk-Peterson J & Tinch D (2014) Effects of Experience, Knowledge and Signals on Willingness to Pay for a Public Good [SEDP-2014-04]. Stirling Economics Discussion Paper, 2014-04.en_UK
dc.relation.ispartofseriesStirling Economics Discussion Paper, 2014-04en_UK
dc.subjectField Experimenten_UK
dc.subjectChoice Experimenten_UK
dc.titleEffects of Experience, Knowledge and Signals on Willingness to Pay for a Public Gooden_UK
dc.typeWorking Paperen_UK
dc.type.statusAM - Accepted Manuscripten_UK
dc.subject.jelC93: Field Experimentsen_UK
dc.subject.jelQ51: Valuation of Environmental Effectsen_UK
dc.subject.jelD83: Search; Learning; Information and Knowledge; Communication; Belief; Unawarenessen_UK
dc.contributor.affiliationUniversity of Tennesseeen_UK
dc.contributor.affiliationUniversity of Warsawen_UK
dc.contributor.affiliationUniversity of Tromsoen_UK
dc.contributor.affiliationUniversity of Tromsoen_UK
rioxxterms.typeWorking paperen_UK
local.rioxx.authorLaRiviere, Jacob|en_UK
local.rioxx.authorCzajkowski, Mikolaj|en_UK
local.rioxx.authorHanley, Nicholas|en_UK
local.rioxx.authorAanesen, Margrethe|en_UK
local.rioxx.authorFalk-Peterson, Jannike|en_UK
local.rioxx.authorTinch, Dugald|en_UK
local.rioxx.projectInternal Project|University of Stirling|
Appears in Collections:Economics Working Papers

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