Warm glow, free-riding and vehicle neutrality in a health-related contingent valuation study.
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.
Hackl
Franz
F
Department of Economics, Johannes Kepler University of Linz, Austria. franz.hackl@jku.at
Pruckner
Gerald J
GJ
D001317:Austria; D003625:Data Collection; D036262:Empirical Research; D005382:Financing, Personal / Q000706:statistics & numerical data*; D015233:Models, Statistical; D012011:Red Cross / Q000191:economics; D012946:Social Welfare