Journal
ECONOMIC INQUIRY
Volume 55, Issue 1, Pages 383-396Publisher
WILEY
DOI: 10.1111/ecin.12377
Keywords
-
Categories
Funding
- Tyson Chair Endowment at the University of Arkansas
- National Research Foundation of Korea [NRF-2014S1A3A2044459]
Ask authors/readers for more resources
In choice experiments, it is commonly assumed that individuals make choices in static and certainty decision-making conditions. Real-world choices, however, are usually made in a dynamic setting. Committing a purchase decision under conditions of uncertainty might have a Commitment Cost (CC). In this study, we test CC theory using a nonhypothetical choice experiment. Specifically, we test whether choice behavior and willingness to pay estimates differ when individuals have the option to gain present or delayed information or reverse the transaction. Our results suggest that the construction of a dynamic decision context can be relevant in the design of choice experiments. (JEL C90, C93, Q18)
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available