Are Stated Preferences Good Predictors of Market Behavior?
Using an economic experiment in conjunction with a survey, we analyze whether consumers' hypothetical willingness-to-pay responses are effective predictors of actual market behavior. We model revealed preferences as a function of socio-demographic characteristics and instrumental variables that repr...
| Publicado en: | Land Economics Vol. 79; no. 1; pp. 44 - 56 |
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| Autores principales: | , , |
| Formato: | Artículo |
| Publicado: |
University of Wisconsin Press
February 2003
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | Using an economic experiment in conjunction with a survey, we analyze whether consumers' hypothetical willingness-to-pay responses are effective predictors of actual market behavior. We model revealed preferences as a function of socio-demographic characteristics and instrumental variables that represent the intensity of stated preferences. Our findings show that consumers who state that they are willing to pay a premium, which is equal to or greater than a positive lower bound, have a higher likelihood of actually buying the product in question. This implies that consumers' actions in the economic experiment validate their survey responses. Reprinted by permission of the publisher. |
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