Multiple Price Lists for Willingness to Pay Elicitation
Multiple price lists are a convenient tool to elicit willingness to pay in surveys and experiments, but choice patterns such as “multiple switching” and “never switching” indicate high error rates. Existing measurement approaches often do not provide accurate standard errors and cannot correct f...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English English |
| Published: |
World Bank, Washington, DC
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/099716109132237341/IDU0eca4bf4b04b6304fa5095800d445c3070d98 http://hdl.handle.net/10986/38013 |
| Summary: | Multiple price lists are a convenient tool to elicit willingness
to pay in surveys and experiments, but choice patterns such
as “multiple switching” and “never switching” indicate high
error rates. Existing measurement approaches often do not
provide accurate standard errors and cannot correct for bias
due to framing and order effects. This paper proposes to
combine a randomization approach with a random-effects
latent utility model to detect bias and account for error.
Data from a choice experiment in South Africa shows that
significant order effects exist which, if uncorrected, would
lead to distorted conclusions about subjects’ preferences.
Templates are provided to create a multiple price list survey
instrument in SurveyCTO and analyze the resulting data
using the proposed methods. |
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