Improving Willingness-to-Pay Elicitation by Including a Benchmark Good
Working Paper 29814
DOI 10.3386/w29814
Issue Date
We propose and validate a simple way to augment the standard Becker-DeGroot-Marschak method that researchers use to elicit willingness to pay (WTP) for a good. The augmentation is to measure WTP for another good ("benchmark good"), one unrelated to both the good the researcher is interested in and the independent variables of interest, and to use WTP for the benchmark good as a control variable in analyses. We illustrate the method and how it can eliminate noise in measured WTP using data collected in Uganda.
Published Versions
Rebecca Dizon-Ross & Seema Jayachandran, 2022. "Improving Willingness-to-Pay Elicitation by Including a Benchmark Good," AEA Papers and Proceedings, vol 112, pages 551-555. citation courtesy of