Marketing Papers

Document Type

Technical Report

Date of this Version

4-2007

Publication Source

Judgment and Decision Making

Volume

2

Issue

2

Start Page

96

Last Page

106

Abstract

Open-ended methods that elicit willingness-to-pay (WTP) in terms of absolute dollars often result in high rates of questionable and highly skewed responses, insensitivity to changes in health state, and raise an ethical issue related to its association with personal income. We conducted a 2x2 randomized trial over the Internet to test 4 WTP formats: 1) WTP in dollars; 2) WTP as a percentage of financial resource; 3) WTP in terms of monthly payments; and 4) WTP as a single lump-sum amount. WTP as a percentage of financial resources generated fewer questionable values, had better distribution properties, greater sensitivity of health states, and was not associated with income. WTP elicited on a monthly basis also showed promise.

Copyright/Permission Statement

© 2007 Society for Judgment and Decision Making

Readers are reminded that this work is protected by copyright. While they are free to use the ideas expressed in it, they may not copy, distribute or publish the work or part of it, in any form, printed, electronic or otherwise, except for reasonable quoting, clearly indicating the source. Readers are permitted to make copies, electronically or printed, for personal and classroom use.

Keywords

health, contingent valuation, willingness-to-pay, computerized elicitation, income

Share

COinS
 

Date Posted: 15 June 2018

This document has been peer reviewed.