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Appears in Collections:Economics Working Papers
Peer Review Status: Unrefereed
Title: The Effects of Experience on Preference Uncertainty: Theory and Empirics for Public and Quasi-Public Goods
Author(s): Czajkowski, Mikolaj
Hanley, Nicholas
LaRiviere, Jacob
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Citation: Czajkowski M, Hanley N & LaRiviere J (2012) The Effects of Experience on Preference Uncertainty: Theory and Empirics for Public and Quasi-Public Goods. Economics Working paper, 2012-17.
Keywords: Bayesian, demand estimation, stated preference, generalized multinomial logit, scale, scale variance.
JEL Code(s): C51: Model Construction and Estimation
D83: Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Q51: Valuation of Environmental Effects
H43: Project Evaluation; Social Discount Rate
Issue Date: 31-Aug-2012
Date Deposited: 7-Sep-2012
Series/Report no.: Economics Working paper, 2012-17
Abstract: This paper develops a model of demand estimation in which consumers learn about their true preferences through consumption experiences. We develop a theoretical model of Bayesian updating, perform comparative statics over the model, and show how the theoretical model can be consistently incorporated into a reduced form econometric model. We then estimate the model using data collected for two quasi experience with a good will make consumers more certain over their preferences in both mean and variance are supported in each case.‐public goods. We find that the predictions of the theoretical exercise that additional
Type: Working Paper
Affiliation: University of Warsaw
University of Tennessee

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