Eliciting and utilizing willingness to pay: evidence from field trials in Northern Ghana
Fischer, G., Berry, J. & Guiteras, R.
(2012).
Eliciting and utilizing willingness to pay: evidence from field trials in Northern Ghana.
London School of Economics and Political Science.
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 | Working paper |
|---|---|
| Copyright holders | © 2012 The Authors |
| Departments | LSE > Academic Departments > Economics |
| Date Deposited | 11 Nov 2013 |
| URI | https://researchonline.lse.ac.uk/id/eprint/47913 |
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- http://personal.lse.ac.uk/fischerg/Assets/BFG-BDM-April-2012.pdf (Publisher)
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