Warm glow, free-riding and vehicle neutrality in a health-related contingent valuation study

✍ Scribed by Franz Hackl; Gerald J. Pruckner

• Book ID: 102231489
• Publisher: John Wiley and Sons
• Year: 2005
• Tongue: English
• Weight: 162 KB
• Volume: 14
• Category: Article
• ISSN: 1057-9230
• DOI: 10.1002/hec.933

✦ Synopsis

Abstract

Criticism of contingent valuation (CV) stresses warm glow and free‐riding as possible causes for biased willingness to pay figures. We present an empirical framework to study the existence of warm glow and free‐riding in hypothetical WTP answers based on a CV survey for the measurement of health‐related Red Cross services. Both in conventional double‐bounded and spike models we do not find indication of warm glow phenomena and free‐riding behaviour. The results are very robust and insensitive to the applied payment vehicles. Theoretical objections against CV do not find sufficient empirical support. Copyright © 2004 John Wiley & Sons, Ltd.