Hypothetical bias and framing effect in the valuation of private consumer goods

Abstracts

EN

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.

Keywords

EN

framing effect; hypothetical bias; laboratory experiment

• Publisher: Uniwersytet Warszawski. Wydawnictwo Naukowe Wydziału Zarządzania
• Journal: Central European Economic Journal
• Year: 2018
• Volume: 5
• Issue: 52

Dates

published

2019-10-13

Contributors

other

Magdalena Brzozowicz

• Faculty of Economic Sciences, University of Warsaw Warsaw, Poland

Identifiers

DOI

10.1515/ceej-2018-0024