Behavioral implications of providing real incentives in stated choice experiments

TY - JOUR

T1 - Behavioral implications of providing real incentives in stated choice experiments

AU - Mørkbak, Morten Raun

AU - Olsen, Søren Bøye

AU - Campbell, Danny

PY - 2014/12/1

Y1 - 2014/12/1

N2 - This paper explores the potential impacts of introducing real economic incentives in choice experiments (CE). While many others have investigated such impacts before, the majority of the literature has focused solely on mitigation of hypothetical bias. We contribute to this literature by widening the scope of research to other behavioral aspects where consumers in CE are often found to deviate from homo economicus. We develop a theoretical model where not only Willingness to pay (WTP) measures but also decision processing can be affected by the introduction of an economic incentive. Specifically, our model allows for differential impacts on attribute processing, depending on the character of the attribute as well as self-image effects. In an empirical CE survey, we find some, though not unequivocal, support of our model. Even though we find no impact on WTP from introducing an economic incentive, we find marked benefits in relation to a number of behavioral aspects that together would favor the use of an economic incentive regardless of hypothetical bias being present or not.

AB - This paper explores the potential impacts of introducing real economic incentives in choice experiments (CE). While many others have investigated such impacts before, the majority of the literature has focused solely on mitigation of hypothetical bias. We contribute to this literature by widening the scope of research to other behavioral aspects where consumers in CE are often found to deviate from homo economicus. We develop a theoretical model where not only Willingness to pay (WTP) measures but also decision processing can be affected by the introduction of an economic incentive. Specifically, our model allows for differential impacts on attribute processing, depending on the character of the attribute as well as self-image effects. In an empirical CE survey, we find some, though not unequivocal, support of our model. Even though we find no impact on WTP from introducing an economic incentive, we find marked benefits in relation to a number of behavioral aspects that together would favor the use of an economic incentive regardless of hypothetical bias being present or not.

KW - Choice experiments

KW - Willingness to pay

KW - Food choice

KW - Real incentives

KW - Non-attendance

KW - Self-image

U2 - 10.1016/j.joep.2014.07.004

DO - 10.1016/j.joep.2014.07.004

M3 - Journal article

SN - 0167-4870

VL - 45

SP - 102

EP - 116

JO - Journal of Economic Psychology

JF - Journal of Economic Psychology

ER -