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...

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Detalles Bibliográficos
Publicado en:Land Economics Vol. 79; no. 1; pp. 44 - 56
Autores principales: Loureiro, Maria L., McCluskey, Jill J., Mittelhammer, Ron C.
Formato: Artículo
Publicado: University of Wisconsin Press February 2003
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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          Loureiro, Maria L.
          McCluskey, Jill J.
          Mittelhammer, Ron C.
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        Contingent valuation
        Consumer preferences
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          Contingent valuation
          Consumer preferences
      ab: 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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    language: English
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