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Eliciting and utilizing willingness to pay: evidence from field trials in Northern Ghana

Fischer, Gregory, Berry, James and Guiteras, Raymond (2012) Eliciting and utilizing willingness to pay: evidence from field trials in Northern Ghana. . The London School of Economics and Political Science, London, UK.

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Abstract

We utilize the Becker-DeGroot-Marschak (1964) mechanism to estimate the willingness to pay for clean drinking water technology in northern Ghana. The BDM mechanism has attractive properties for empirical research, allowing us to directly estimate demand, compute heterogeneous treatment effects, and study the screening and causal effects of prices with minor modifications to a standard field experiment setting. We demonstrate the implementation of BDM along these three dimensions, compare it to the standard take-it-or-leave it method for eliciting willingness to pay, and discuss practical issues for implementing the mechanism in true field settings.

Item Type: Monograph (Working Paper)
Official URL: http://www.lse.ac.uk/economics/home.aspx
Additional Information: © 2012 The Authors
Divisions: Economics
Subjects: D History General and Old World > DT Africa
H Social Sciences > HC Economic History and Conditions
JEL classification: C - Mathematical and Quantitative Methods > C3 - Econometric Methods: Multiple; Simultaneous Equation Models; Multiple Variables; Endogenous Regressors
D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L31 - Nonprofit Institutions; NGOs
Sets: Departments > Economics
Date Deposited: 11 Nov 2013 13:58
Last Modified: 20 Feb 2019 03:38
URI: http://eprints.lse.ac.uk/id/eprint/47913

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