An alternative approach for eliciting willingness-to-pay: A randomized Internet trial
Journal Title: Judgment and Decision Making - Year 2007, Vol 2, Issue 2
Abstract
Open-ended methods that elicit willingness-to-pay (WTP) in terms of absolute dollars often result in high rates of questionable and highly skewed responses, insensitivity to changes in health state, and raise an ethical issue related to its association with personal income. We conducted a 2x2 randomized trial over the Internet to test 4 WTP formats: 1) WTP in dollars; 2) WTP as a percentage of financial resources; 3) WTP in terms of monthly payments; and 4) WTP as a single lump-sum amount. WTP as a percentage of financial resources generated fewer questionable values, had better distribution properties, greater sensitivity to severity of health states, and was not associated with income. WTP elicited on a monthly basis also showed promise.
Authors and Affiliations
Laura J. Damschroder, Peter A. Ubel, Jason Riis and Dylan M. Smith
Keywords
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