FrançaisEnglish

Érudit | Dépôt de documents >
CIRPÉE - Centre interuniversitaire sur le risque, les politiques économiques et l'emploi >
Cahiers de recherche du CIRPÉE >

Please use this identifier to cite or link to this item:

https://depot.erudit.org/id/003166dd

Title: Measuring the Willingness to Pay to Avoid Guilt: Estimation using Equilibrium and Stated Belief Models
Authors: Bellemare, Charles
Sebald, Alexander
Strobel, Martin
Keywords: Guilt aversion
Willingness to Pay
Equilibrium and stated beliefs models
Issue Date: 2010-03
Series/Report no.: Cahiers du CIRPÉE;10-11
Abstract: We estimate structural models of guilt aversion to measure the population level of willingness to pay (WTP) to avoid feeling guilt by letting down another player. We compare estimates of WTP under the assumption that higher-order beliefs are in equilibrium (i.e. consistent with the choice distribution) with models estimated using stated beliefs which relax the equilibrium requirement. We estimate WTP in the later case by allowing stated beliefs to be correlated with guilt aversion, thus controlling for a possible source of a consensus effect. All models are estimated using data from an experiment of proposal and response conducted with a large and representative sample of the Dutch population. Our range of estimates suggests that responders are willing to pay between 0.40 and 0.80 Euro to avoid letting down proposers by 1 Euro. Furthermore, we find that WTP estimated using stated beliefs is substantially overestimated (by a factor of two) when correlation between preferences and beliefs is not controlled for. Finally, we find no evidence that WTP is significantly related to the observable socio-economic characteristics of players.
URI: https://depot.erudit.org/id/003166dd
Appears in Collections:Cahiers de recherche du CIRPÉE

Files in This Item:

CIRPEE10-11.pdf, (Adobe PDF ; 188,81 kB)

Items in the Repository are protected by copyright, with all rights reserved, unless otherwise indicated.

 

About Érudit | Subscriptions | RSS | Terms of Use | Contact us |

Consortium Érudit ©  2014