Working Paper: NBER ID: w29814
Authors: Rebecca Dizon-Ross; Seema Jayachandran
Abstract: We propose and validate a simple way to augment the standard Becker-DeGroot-Marschak method that researchers use to elicit willingness to pay (WTP) for a good. The augmentation is to measure WTP for another good ("benchmark good"), one unrelated to both the good the researcher is interested in and the independent variables of interest, and to use WTP for the benchmark good as a control variable in analyses. We illustrate the method and how it can eliminate noise in measured WTP using data collected in Uganda.
Keywords: Willingness to Pay; Benchmark Good; Elicitation Methodology; Parental Preferences; Uganda
JEL Codes: C83; O1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| benchmark good (C52) | noise in measured WTP (R41) |
| weekend effects (G14) | WTP for children's goods (D19) |
| social desirability bias (D91) | reported WTP (R29) |
| benchmark good (C52) | weekend effects (G14) |
| benchmark good (C52) | social desirability bias (C83) |
| benchmark good (C52) | validity of WTP measurements (C52) |