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Putting One's Money Where One's Mouth is: Increasing Saliency in the Field

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  • Daniel A. Brent
  • Lata Gangadharan
  • Anke Leroux
  • Paul A. Raschky

Abstract

We present a novel approach to address differences between stated and paid choices by incentivizing stated choices in a randomized field experiment. The treatment increases consequentiality in the field by making each decision financially relevant. Our results show that the treatment effect is small in aggregate. However, we find that the treatment increases estimates of the marginal utility of income, especially among low-income households. The treatment also affects estimates of preferences for specific attributes by reducing willingness to pay for attributes with indirect benefits. Respondents with greater self-reported environmental preferences are more susceptible to the treatment in attribute space.

Suggested Citation

  • Daniel A. Brent & Lata Gangadharan & Anke Leroux & Paul A. Raschky, 2014. "Putting One's Money Where One's Mouth is: Increasing Saliency in the Field," Monash Economics Working Papers 43-14, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2014-43
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    Cited by:

    1. Zack Dorner & Daniel A. Brent & Anke Leroux, 2019. "Preferences for Intrinsically Risky Attributes," Land Economics, University of Wisconsin Press, vol. 95(4), pages 494-514.
    2. Dorner, Zach & Brent, Daniel A. & Leroux, Anke, 2016. "Eliciting Risk Preferences for Intrinsic Attributes," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236644, Agricultural and Applied Economics Association.
    3. Zawojska Ewa, 2017. "A Consequential Contingent Valuation Referendum: Still Not Enough to Elicit True Preferences for Public Goods!," Central European Economic Journal, Sciendo, vol. 2(49), pages 73-90, December.
    4. Daniel A. Brent & Lata Gangadharan & Allison Lassiter & Anke Leroux & Paul A. Raschky, 2016. "Valuing Environmental Services Provided by LocalStormwater Management," Monash Economics Working Papers 35-16, Monash University, Department of Economics.

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    More about this item

    Keywords

    Field experiment; non-market goods; stated preference; hypothetical bias;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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