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Title:The effect of power outages and cheap talk on willingness to pay to reduce outages PDF Logo
Authors:Carlsson, Fredrik
Martinsson, Peter
Akay, Alpaslan
Issue Date:2009
Series/Report no.:IZA Discussion Papers 4307
Abstract:Using an open-ended contingent valuation survey, we analyze how (i) experience of a power outage due to one of the worst storms ever to hit Sweden and (ii) a cheap talk script affect respondents' WTP to avoid power outages. Experience significantly increases and a cheap talk script decreases the proportion of respondents with zero WTP. There is no significant effect in either case on stated WTP conditional on a positive WTP. The paper concludes with a discussion on the use of valuation studies shortly after the occurrence of an undesirable event.
Subjects:Contingent valuation
cheap talk
experience
power outages
JEL:C25
D12
Q41
Persistent Identifier of the first edition:urn:nbn:de:101:1-20090825460
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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