Hypothetical bias and framing effect in the valuation of private consumer goods
Hypothetical bias and framing effect in the valuation of private consumer goods
Author(s): Magdalena BrzozowiczSubject(s): Business Economy / Management, Behaviorism, Methodology and research technology
Published by: Wydawnictwa Uniwersytetu Warszawskiego
Keywords: framing effect; hypothetical bias; laboratory experiment;
Summary/Abstract: In a laboratory experiment, I examined two behavioural effects: hypothetical bias and the framing effect. I elicited willingness to pay (WTP) for a cosmetic product, and manipulated framing conditions (positive vs. negative attribute framing) and incentives to reveal the actual valuation (hypothetical vs. real). I demonstrated that hypothetical bias has a significant impact on WTP values; however, the framing effect has no effect on the valuation of the product. Similarly, I found no interaction between the two effects. This observation contributes to claims that hypothetical research methods lead to equally reliable data as those based on consequential choices.
Journal: Central European Economic Journal
- Issue Year: 5/2018
- Issue No: 52
- Page Range: 260-269
- Page Count: 10
- Language: English