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Multiple Price Lists for Willingness to Pay Elicitation

Author

Listed:
  • Kelsey Jack
  • Kathryn McDermott
  • Anja Sautmann
Abstract
Multiple price lists are a convenient tool to elicit willingness to pay (WTP) in surveys and experiments, but choice patterns such as “multiple switching” and “never switching” indicate high error rates. Existing measurement approaches often do not provide accurate standard errors and cannot correct for bias due to framing and order effects. We propose to combine a randomization approach with a random-effects latent utility model to detect bias and account for error. Data from a choice experiment in South Africa shows that significant order effects exist which, if uncorrected, would lead to distorted conclusions about subjects’ preferences. We provide templates to create a multiple price list survey instrument in SurveyCTO and analyze the resulting data using our proposed methods.

Suggested Citation

  • Kelsey Jack & Kathryn McDermott & Anja Sautmann, 2022. "Multiple Price Lists for Willingness to Pay Elicitation," NBER Working Papers 30433, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30433
    Note: DEV EEE
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    Cited by:

    1. Jack, B. Kelsey & McDermott, Kathryn & Sautmann, Anja, 2022. "Multiple price lists for willingness to pay elicitation," Journal of Development Economics, Elsevier, vol. 159(C).
    2. Gautam, Sanghmitra & Gechter, Michael & Guiteras, Raymond P. & Mobarak, Ahmed Mushfiq, 2024. "Encouraging Rural Sanitation Take-up: Insights from Experimental Evaluations of Interventions," CEnREP Working Papers 340057, North Carolina State University, Department of Agricultural and Resource Economics.
    3. Guerreiro, Joao & Hazell, Jonathon & Lian, Chen & Patterson, Christina, 2024. "Why Do Workers Dislike Inflation? Wage Erosion and Conflict Costs," IZA Discussion Papers 17339, Institute of Labor Economics (IZA).
    4. Anna Josephson & Jeffrey D. Michler & Talip Kilic & Siobhan Murray, 2024. "The Mismeasure of Weather: Using Remotely Sensed Earth Observation Data in Economic Context," Papers 2409.07506, arXiv.org.
    5. Beegle, Kathleen & Dillon, Andrew & Karlan, Dean & Udry, Christopher, 2024. "Introduction to the journal of development economics special issue on methods and measurement," Journal of Development Economics, Elsevier, vol. 170(C).
    6. Alice Pizzo & Christina Gravert & Jan M. Bauer & Lucia Reisch, 2024. "Carbon Taxes Crowd Out Climate Concern: Experimental Evidence from Sustainable Consumer Choices," CEBI working paper series 24-16, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    7. Changkuk Im, 2023. "Accurate Quality Elicitation in a Multi-Attribute Choice Setting," Papers 2309.00114, arXiv.org, revised Dec 2023.

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    More about this item

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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