Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
885389 | Journal of Economic Psychology | 2007 | 16 Pages |
Abstract
Does having a choice increase the willingness to pay for what is chosen? In web experiments, we find that individuals are willing to pay more for a hypothetical insurance policy when they are told that they will be able to choose than when they are presented the same policy as the only option. We propose that a chosen good when presented alongside a worse good is valued higher than the same good offered alone. We control for the information effect of the additional option. Our results suggest that enrollment in insurance plans could be increased by making decisions look like choices, and that similar results may be found in other choice situations.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Marketing
Authors
Helena Szrek, Jonathan Baron,