An Experimental Validation of Hypothetical WTP for a Recyclable Product
- Cite this article as:
- Camacho-Cuena, E., García-Gallego, A., Georgantzís, N. et al. Environmental and Resource Economics (2004) 27: 313. doi:10.1023/B:EARE.0000017657.08513.74
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Using a within-subject experiment, we compare hypothetical andreal willingness to pay (WTP) for an improvement in therecyclability of a product. Subjects are faced with a real paymentscenario after they have responded to a hypothetical question.Contrary to most of the results obtained in similar studies, at apopulation level, there are no significant median differencesbetween actual and hypothetical stated values of WTP. However,within-subject comparisons between hypothetical and actual valuesindicate that subjects stating a low (high) hypothetical WTP tendto underestimate (overestimate) the value of their actualcontributions.