Measuring the willingness-to-pay for others' consumption: An application to joint decisions of children

Artikel

We propose a method to quantify other-regarding preferences in group decisions. Our method is based on revealed preference theory. It measures willingness-to- pay for others' consumption and willingness-to-pay for equality in consumption by evaluating consumption externalities in monetary terms. We introduce an al- truism parameter and an inequality aversion parameter. Each parameter defines a continuum of models characterized by varying degrees of externalities. We study the empirical performance of our method through a simulation analysis, in which we also investigate the impact of measurement error and increased sample size. Finally, we use our method to analyze decisions made by dyads of children in an experimental setting. We find that children's decisions are particularly characterized by varying levels of altruism. We relate this heterogeneity across children to age, gender, and the degree of friendship in dyads.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Quantitative Economics ; ISSN: 1759-7331 ; Volume: 8 ; Year: 2017 ; Issue: 3 ; Pages: 1037-1082 ; New Haven, CT: The Econometric Society

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Consumer Economics: Theory ; Consumer Economics: Empirical Analysis ; Semiparametric and Nonparametric Methods: General
• Thema: Consumption externalities ; altruism ; inequality aversion ; revealed preferences ; children's consumption

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Bruyneel, Sabrina ; Cherchye, Laurens ; Cosaert, Sam ; De Rock, Bram ; Dewitte, Siegfried
• Ereignis: Veröffentlichung
• (wer): The Econometric Society
• (wo): New Haven, CT
• (wann): 2017

Weitere Informationen

• DOI: doi:10.3982/QE574
• Handle: http://hdl.handle.net/10419/195561
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ