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It’s All Fun and Games? The Persistent Treatment Effects of Willingness-to-Pay Experiments

Author

Listed:
  • Jenny C. Aker

    (Cornell University
    Center for Global Development)

  • Brian Dillon

    (Cornell University)

  • Leticia Donoso-Peña

    (Tufts University)

  • Anne Krahn

    (Tufts University)

Abstract

Willingness-to-pay (WTP) experiments have been widely used to assess demand for a variety of products. Do they also generate persistent treatment effects? We answer this question using a randomized controlled trial of a baseline WTP experiment, combined with in-person and phone survey data over a four-year period. We find that a simple experiment leads to positive and persistent effects on adoption and usage of an improved storage technology, as well as disadoption of traditional technologies. These results are primarily driven by households who experienced the product, rather than information or salience. Failing to account for demand elicitation experiments conducted at baseline may affect the external validity of the broader experiments in which they are embedded.

Suggested Citation

  • Jenny C. Aker & Brian Dillon & Leticia Donoso-Peña & Anne Krahn, 2025. "It’s All Fun and Games? The Persistent Treatment Effects of Willingness-to-Pay Experiments," Working Papers 714, Center for Global Development.
    • Handle: RePEc:cgd:wpaper:714
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    More about this item

    Keywords

    Willingness to pay; Becker-DeGroot-Marschak; Field Experiment; persistent treatment effects; agriculture;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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